Pak Increases Defence Budget by 10-15%

[HRK]

Its actually $8.40 billion i mistakenly added Employee salaries(bcoz it was highlighted) again in the total budget.

Here is the calculation :
(627+132+4+52)/97 = 8.4

It includes Defence+Pension+SUPCARO+Nuclear

@INDIC its $8.4 billion as per official figures.

& may I know the logic to add amounts of different heads Under the category of Defence budget...........???

 

[HRK]

This one from last year.
Study- DEFENSE AND EDUCATION BUDGET OF PAKISTAN | Media Point

Dear could you help me to find $ 10 billion figure and figures related to 1% of GDP for education...???

 

[Yogi]

& may I know the logic to add amounts of different heads Under the category of Defence budget...........???

INDIC wanted to know the total defence spending including military pensions n nuclear program n stuff.

I had asked a similar question a few pages back so, i answered him.

 

[HRK]

INDIC wanted to know the total defence spending including military pensions n nuclear program n stuff.

I had asked a similar question a few pages back so, i answered him.

Yara Nuclear program is one thing, military pension is another thing......so y to sum all these as Defence budget I know some of the media circles are propagating these figure but with no logic to support.

 

[Nishan_101]

REZAUL H LASKAR | ISLAMABAD | JUN 12, 2013

Pakistan's cash-strapped new government announced a hefty 15 per cent hike in its defence budget to Rs 627 billion, with the powerful army getting the lion's share of the outlay.

The government increased the allocation for defence in its budget for fiscal 2013-14 to Rs 627 billion (about USD 6.32 billion), marking an increase of little more than 15 per cent over the outlay for the current fiscal.

The allocation for the three defence services amounted to 15.73 per cent of the federal budget of Rs 3.985 trillion for fiscal 2013-14.

The army got the lion's share of the outlay with Rs 301.54 billion. The air force was allocated Rs 131.18 billion while the outlay for the navy was Rs 62.80 billion.

Further details, including allocations for weapons acquisition programmes, were not immediately available.

Official budget documents presented in parliament said a sum of Rs 627 billion had been allocated for the defence services for 2013-14, compared with Rs 545 billion (about 5.82 billion dollars) provided in the fiscal year ending on June 30.

The budget documents further showed that the new PML-N government had allocated Rs 2300 million for the Defence Production Division in the Public Sector Development Programme for 2013-14.

Of this amount, Rs 2246.300 million has been allocated for installing a ship lift, transfer system and associated machinery and equipment to provide docking and repair facilities for surface ships, submarines and commercial vessels at Karachi port.

Pakistan's new government led by Nawaz Sharif took office last week and faces big challenges like reducing budget deficit and crippling energy crisis.

Pak Increases Defence Budget by 15% | news.outlookindia.com

If the budget is about $8 Billion then then $4 Billion should be given to Army, $2.5 Billion to Airforce and $1.5 Billion Navy.

 

[Yogi]

Yara Nuclear program is one thing, military pension is another thing......so y to sum all these as Defence budget I know some of the media circles are propagating these figure but with no logic to support.

I agree that Military pension n Nuclear program r different things but as Pakistani Nuclear program is primarily focused on making nuclear bombs rather than for civilian use, maybe thats why he wanted to sum it up together.

Hope that clear up a bit.

 

[INDIC]

Dear could you help me to find $ 10 billion figure and figures related to 1% of GDP for education...???

The link I provided you shows education spending was mere 0.9% of GDP.

Read this link.(excluding nuclear program)

http://www.defence.pk/forums/pakistan-army/241188-budget-paper-extra-billions-given-army-acknowledged.html

For the next year, the proposed defence budget stands at Rs627 billion –an increase of 10%, or Rs57 billion, over this year’s revised budget, according to official documents. Similarly, Rs190 billion will be released for security-related spending, Rs120 billion for military pensions and at least Rs30 billion of the UN peacekeeping mission reimbursements. The proposed accumulative defence spending adds up to Rs970 billion or roughly 30% of the next year’s proposed budget.

 

[HRK]

I agree that Military pension n Nuclear program r different things but as Pakistani Nuclear program is primarily focused on making nuclear bombs rather than for civilian use, maybe thats why he wanted to sum it up together.

Hope that clear up a bit.

yara 2 nuclear power plants are under construction for power generation in Chasma one is planned in Karachi and more in pipeline (forgetting the name of that place)all are for power generation i.e. civilian programmes.......therefore it is not justified to add these amount in defence budget.....

 

[HRK]

The link I provided you shows education spending was mere 0.9% of GDP.

Read this link.(excluding nuclear program)

My dear the link which u provided was accounting only federal expenditures on education......but in reality provincial governments have more stakes in educations from primary level of education to University level of education our so called liberal media circles do play this type of game and an outsider not knowing system in Pakistan pick those news.......so the point is in federal Budget funds allocated for education is mainly for Federal Universities and for some schools in Federal territory.......

http://www.defence.pk/forums/pakistan-army/241188-budget-paper-extra-billions-given-army-acknowledged.html

For the next year, the proposed defence budget stands at Rs627 billion –an increase of 10%, or Rs57 billion, over this year’s revised budget, according to official documents. Similarly, Rs190 billion will be released for security-related spending, Rs120 billion for military pensions and at least Rs30 billion of the UN peacekeeping mission reimbursements. The proposed accumulative defence spending adds up to Rs970 billion or roughly 30% of the next year’s proposed budget.

Dear in the above stated paragraph three points are highlighted

1- 190 billion Expenditures related to security, dear these are the expenditures related to WOT expenses which we pay from our our national treasury first and then received the reimbursement of the same under the head of Coalition Support Fund (CSF) again it is not the additional amount and not related to core defence expenditures

2- 120 billion Pension of:A retired government servant receives his pension its a normal expense why are you adding that amount to defence budget.......?????

3- 30 billion reimbursement from UNO:As per author theses funds are the reimbursement of UN peacekeeping missionsagain it mean we have already spend theses fund and are getting our funds back, dear I tried to find the same in both budget documents (Annual Budget Statement 2013-14+Explanatory Memorandum on Federal Receipts 2013-14) but failed to locate the same under UN account what i find is attached under..........

I think it is because this particular article was written in March 20,2013 almost 3 month earlier then the budget so it could be a mistake at author end. so this 970 billion figure is just a myth and nothing els.

Now my dear you need to know that only 131.389 billion will be available for defence forces for the physical assets

 

[pkuser2k12]

mr hamid mir yukh was saying it is not so much of increase due to inflation

 

[pkuser2k12]

Pakistan should cut its development budge to give to health,education etc etc

 

[air marshal]

Kharra Sach ( Analyze About The Defence Budget Of Pakistan )

 

[Slayer786]

This shows that the PM wants to pacify the military and what better way than to increase the defence budget. It was actually PM saving his as.s. LOL.

 

[ejaz007]

Analysts: Pakistan Budget Hike Provides Little


ISLAMABAD — The increase in defense spending under Pakistan’s new defense budget is largely consumed by wages and the cost of anti-insurgency operations, analysts say, providing little real increase for the military.

Unveiled by the new Pakistani government of Prime Minister Nawaz Sharif’s Pakistan Muslim League-N June 12, the budget, converted from Pakistani rupees, amounts to some US $6.36 billion, a rise from the previous budget of approximately US $4.6 billion.

It comes at a time of severe economic hardship.

According to the text of the unveiled budget, GDP growth has been below 3 percent and inflation has remained at 13 percent, the highest for the past four decades, while foreign exchange reserves have fallen from $11.1 billion to $6.3 billion.

The defense budget does not usually include procurement. It mainly consists of wages and operational costs with increases fueled by ongoing counterinsurgency efforts.

Especially when considering the latter factor, said Brian Cloughley, former Australian defense attaché to Islamabad, , the higher budget is “no increase at all, really.”

This view is echoed by a former economic adviser to the government who now heads the Macroeconomic Insight Consultancy in Islamabad, Sakib Sherani, who says the increase is “barely in line with expected inflation.”

“In addition, with continued deployment in the western part of the country, I would assume it leaves little for anything else” Sherani said.

Cloughley highlights that “The main drain at the moment is the enormous operating costs involved in counterinsurgency in the west. F-16 and Cobra sorties alone are colossally expensive, plus troop reinforcement in [Khyber Pakhtunkhwa]/Federally Administered Tribal Areas is costing a fortune.

“I am sure that most of the increase is required by expenditure on operations in the west of the country. Operating costs of moving massive numbers of troops to KP from the border with India, then maintaining them in the field, are enormous. Daily resupply, alone, is most expensive in such terrain,” he said.

Ordnance expended during these missions is very expensive.

“Among other ordnance, Pakistan has bought [at full cost], 1,450 2,000-pound bombs, and 1,600 laser bomb kits for the F-16s. These alone would be over $200 million. And remember that between May 2008 and November 2011, the PAF conducted 5,500 sorties over the tribal areas, engaging 4,600 targets,” said Cloughley.

The increase, therefore, has essentially gone to the Army and Air Force, something mirrored in the fiscal 2012-2013 budget. In that budget, the Army was allocated $2.8 billion (an increase of $128 million), the Air Force was allocated $1.2 billion (an increase of $64 million), and the Navy was allocated $562 million (a decrease of $1.4 million).

However, no official breakdown of figures has been released for the 2013-2014 budget.

Exacerbating the already severe economic situation is a prolonged period of stagnant growth and inflation, made worse, according to Sherani, by corruption and maladministration during the tenure of the outgoing government of the Pakistan People’s Party (PPP).

The economic problems leave analysts to believe large-scale procurements are unlikely.

“There isn’t going to be enough money for submarines or refueling aircraft for the F-16s, for example. No really big-ticket items will be affordable” said Cloughley.

Sherani said he is unsure if “large-scale procurement can be funded from the budget for the next one to two years,” but is thankful that “ongoing programs have not met with funding cuts, to the best of my knowledge.”

Despite the economic woes, Salma Malik, assistant professor, at the Department of Defence & Strategic Studies, in Islamabad’s Quaid-i-Azam University, said some large-scale procurement is possible out of sheer necessity.

Noting that the Air Force has been particularly hard hit by the economic downturn, and did not receive any funds from 2007 under the Armed Force Development Programme 2025, she thinks funds may have to be found.

“On one hand, PAF equipment would be expensive implying that procurements may need to be phased out,” she said.

“However, the other aspect is equally true that a significant time gap is generally involved between commencement of the acquisition process and the operationalization of the equipment, for example, fighter aircraft, where they would be operationally ready; hence the sense of urgency.”

For this reason, she thinks “some allocation might happen straightaway.”

Other aspects of the budget include big increases for the two divisions of the Ministry of Defence, the Defence Division and the Defence Production Division. Their combined budget increased from $14 million in 2012-FY2013 to approximately $59.3 million.

The Defence Division received $35.5 million, up from nearly $12.6 million, the majority of which is for ongoing projects such as base development, with nearly $25 million slated for the National Electronics Complex of Pakistan, which is a major state-owned research-and-development organization.

The Defence Production Division received nearly $23.3 million, of which $22.8 million is for ongoing modernization of Karachi Shipyard and Engineering Works, the state-owned warship builder.

This includes the installation of a ship lift and transfer system plus associated equipment to improve the docking and repair facilities.

But under Pakistan’s dire economic circumstances, Cloughley said the longer-term outlook for defense spending is not positive.

“The best that can be hoped for is ‘steady as it goes’.”

Analysts: Pakistan Budget Hike Provides Little | Defense News | defensenews.com