Featured Pakistan Defence Budget De-Myth-ified

[fatman17]

Myth number 1: The defence budget eats up the lion’s share of our total budgetary expenses. Not true. In Budget 2020-21, ‘Defense Affairs and Services’ has been allocated Rs1,289 billion out of total budgetary expenses of Rs7,295 billion. What this means is that defence comprises 17.67 percent of the total expenses and 82.33 percent of all government expenses are non-defence related.

Myth number 2: Of the total defence budget, Pakistan Army takes away the lion’s share. Not true. Pakistan Army gets Rs613 billion (47.6 percent), PAF Rs274 billion (21 percent), Pak Navy Rs140 billion (11 percent) and Inter-Services Rs262 billion (20 percent).

Myth number 3: Our defence budget has been rising at a high rate. Not true. In the 70s, the allocation for defence amounted to 6.50 percent of GDP. In the financial year 2001-02, twenty years ago, the allocation for defence amounted to 4.6 percent of GDP. Budget 2020-21 has allocated Rs1,289 billion which is 2.86 percent of GDP. In the 60s, Pak Army’s budget as a percentage of total expenditures hovered around 30 percent. In Budget 2020-21, Pak Army’s budget as a percentage of total expenditures has come down to 8 percent.

Myth number 4: Pakistan has a large military. Not true. There are at least 64 countries in the world who have more military personnel on a per capita basis than does Pakistan. They are: Turkey, Iran, Iraq, Switzerland, Italy, Norway, Singapore, South Korea, Russia, Sri Lanka, Egypt, Libya, Kuwait, Thailand, Saudi Arabia, Qatar, UAE, Israel, Estonia, Vietnam, Slovenia, Botswana, Mongolia, Yemen, Kazakhstan, Cuba, Mauritania, Croatia, Chile, Somalia, Albania, Sao Tome and Principe, Namibia, Angola, Cambodia, Uruguay, Bolivia, Romania, Morocco, Lithuania, Portugal, Burma, Algeria, Azerbaijan, Bhutan, Burundi, Bulgaria, Columbia, Serbia and Montenegro, Cyprus, Greece, Armenia, Djibouti, Maldives, Oman, Belarus, Jordan, Syria, Laos, Bahrain, Brunei, Eritrea and North Korea.

Myth number 5: Pakistan’s military expenditures are the highest in the world on a per capita basis. Not true. Pakistan’s military expenditures on a par capita basis are actually one of the lowest on the face of the plant. Israel spends $2,000 on a per capita basis and Pakistan spends $22 per capita.

Myth number 6: The military’s commercial undertakings are a burden on our economy. Not true. Fauji Fertilizer is one of the highest taxpayers in Pakistan. In 2019, Fauji Fertilizer paid a wholesome Rs42 billion in taxes and duties. Fauji Cement deposits around Rs10 billion a year in the treasury on account of income taxes, excise duty and sales tax.

Fact: Pakistan spends 2.86 percent of her GDP on defense. The global average is 2.18 percent. Yes, we do spend a higher percent of our GDP on defence than the global average. Countries that spend even a higher percentage of their GDP on defence than Pakistan include Saudi Arabia (8 percent), Israel (5.3 percent), Russia (3.9 percent) and the US (3.4 percent).

Fact: Pakistan’s armed forces are the 6th largest in the world but our expenses on a per soldier basis are the lowest. The US spends $392,000 per soldier, Saudi Arabia $371,000, India $42,000, Iran $23,000 and Pakistan $12,500 per soldier.

The writer is a columnist based in Islamabad.

Email: farrukh15hotmail.com

Twitter: saleemfarrukh

 

[Pakistan Ka Beta]

(excluding defence pensions) and PKR 1.59 trillion(including defence pensions

Are u drunk ??? Pension of armed forces is Rs .369 Billion . Idiot . So when 1289 is 17.67 % then how will 369 billion add it to 40 or 50 percent . Nobody is discussing revenue . First understand about constitution of Pakistan , 18th amendment , NFC shares , responsibilities of federal and Provincial govts i.e ministries then talk . You don't know shit about Pakistan other than Indian media propaganda articles .By the way its discussion between Pakistanis u Indians should worry about your country .

 

[KeyBORED Warrior]

Myth number 1: The defence budget eats up the lion’s share of our total budgetary expenses. Not true. In Budget 2020-21, ‘Defense Affairs and Services’ has been allocated Rs1,289 billion out of total budgetary expenses of Rs7,295 billion. What this means is that defence comprises 17.67 percent of the total expenses and 82.33 percent of all government expenses are non-defence related.

Myth number 2: Of the total defence budget, Pakistan Army takes away the lion’s share. Not true. Pakistan Army gets Rs613 billion (47.6 percent), PAF Rs274 billion (21 percent), Pak Navy Rs140 billion (11 percent) and Inter-Services Rs262 billion (20 percent).

Myth number 3: Our defence budget has been rising at a high rate. Not true. In the 70s, the allocation for defence amounted to 6.50 percent of GDP. In the financial year 2001-02, twenty years ago, the allocation for defence amounted to 4.6 percent of GDP. Budget 2020-21 has allocated Rs1,289 billion which is 2.86 percent of GDP. In the 60s, Pak Army’s budget as a percentage of total expenditures hovered around 30 percent. In Budget 2020-21, Pak Army’s budget as a percentage of total expenditures has come down to 8 percent.

Myth number 4: Pakistan has a large military. Not true. There are at least 64 countries in the world who have more military personnel on a per capita basis than does Pakistan. They are: Turkey, Iran, Iraq, Switzerland, Italy, Norway, Singapore, South Korea, Russia, Sri Lanka, Egypt, Libya, Kuwait, Thailand, Saudi Arabia, Qatar, UAE, Israel, Estonia, Vietnam, Slovenia, Botswana, Mongolia, Yemen, Kazakhstan, Cuba, Mauritania, Croatia, Chile, Somalia, Albania, Sao Tome and Principe, Namibia, Angola, Cambodia, Uruguay, Bolivia, Romania, Morocco, Lithuania, Portugal, Burma, Algeria, Azerbaijan, Bhutan, Burundi, Bulgaria, Columbia, Serbia and Montenegro, Cyprus, Greece, Armenia, Djibouti, Maldives, Oman, Belarus, Jordan, Syria, Laos, Bahrain, Brunei, Eritrea and North Korea.

Myth number 5: Pakistan’s military expenditures are the highest in the world on a per capita basis. Not true. Pakistan’s military expenditures on a par capita basis are actually one of the lowest on the face of the plant. Israel spends $2,000 on a per capita basis and Pakistan spends $22 per capita.

Myth number 6: The military’s commercial undertakings are a burden on our economy. Not true. Fauji Fertilizer is one of the highest taxpayers in Pakistan. In 2019, Fauji Fertilizer paid a wholesome Rs42 billion in taxes and duties. Fauji Cement deposits around Rs10 billion a year in the treasury on account of income taxes, excise duty and sales tax.

Fact: Pakistan spends 2.86 percent of her GDP on defense. The global average is 2.18 percent. Yes, we do spend a higher percent of our GDP on defence than the global average. Countries that spend even a higher percentage of their GDP on defence than Pakistan include Saudi Arabia (8 percent), Israel (5.3 percent), Russia (3.9 percent) and the US (3.4 percent).

Fact: Pakistan’s armed forces are the 6th largest in the world but our expenses on a per soldier basis are the lowest. The US spends $392,000 per soldier, Saudi Arabia $371,000, India $42,000, Iran $23,000 and Pakistan $12,500 per soldier.

The writer is a columnist based in Islamabad.

Email: farrukh15hotmail.com

Twitter: saleemfarrukh

The exact same figures were published by an author 'Hassan Naqvi'. The article was posted by Shazazuddin here on pdf. Who's the actual author of this article?

1) Add to this defence expenditure which in FY20 was PKR 1.23 trillion (excluding defence pensions) and PKR 1.59 trillion(including defence pensions) which accounted for 40% of net federal revenue (without defence pensions) and about 50% (with defence pensions).

This year, defence budget has been ramped up to PKR 1.29 trillion (without defence pensions) and PKR 1.66 trillion (with defence pensions) which is 35% and 45% respectively of the net federal revenue.

First learn the difference between a million, a billion and a trillion. Then post your crap.

 

[Death Professor]

Are u drunk ??? Pension of armed forces is Rs .369 Billion . Idiot . So when 1289 is 17.67 % then how will 369 billion add it to 40 or 50 percent . Nobody is discussing revenue . First understand about constitution of Pakistan , 18th amendment , NFC shares , responsibilities of federal and Provincial govts i.e ministries then talk . You don't know shit about Pakistan other than Indian media propaganda articles .By the way its discussion between Pakistanis u Indians should worry about your country .

First learn the difference between a million, a billion and a trillion. Then post your crap.

Don't bother with them. Last year I too used to argue with them thinking, that they might be a little-bit sane but I was always disappointed. They repeat their retarded bs again and again, looking for some one that buys their crap. Same shiat, multiple ids. After couple of pages of arguments they will finally accept that their army's def budget is almost the same(interms of %age) as our army's def. budget(including pensions) of the total gov. budget[which is around 15-17%age for both countries]. But as soon as you might think to yourself that finally you have made progress in convincing a douche. They will change the criteria and say that "your army spends more %age of GDP as def budget compared to our's" . You can't just win against their retarded logic, just impossible, been there, done that.

 

[Pakistan Ka Beta]

Economists point out myths and facts about Pakistan’s defence budget
By
Hassan Naqvi
-
June 23, 2020

–Govt to spend only 17.7pc on defence-related activities in FY21

–Army to get 47.6pc of the total defence budget of Rs1.28tr

–Pakistan’s military expenditures on per capita basis are among lowest in the world; Israel spends $2,000 on a per capita basis while Pakistan spends $22

LAHORE: Leading economists of Pakistan have pointed out a number of myths and facts about Pakistan’s defence budget.

Farrukh Saleem, an economist and financial analyst, said that the first myth is that the defence budget eats up the lion’s share of the country’s total budgetary expenses.

“In budget 2020-21, ‘Defence Affairs and Services’ has been allocated Rs1,289 billion out of the total budgetary expenses of Rs7,295 billion. What this means is that defence comprises 17.67 per cent of the total expenses and 82.33 per cent of all government expenses are non-defence related,” he explained.

He said that the second myth is that of the total defence budget, Pakistan Army takes away the lion’s share. “Pakistan Army gets Rs613 billion (47.6 per cent), Pakistan Air Force (PAF) Rs274 billion (21 per cent), Pakistan Navy Rs140 billion (11 per cent) and Inter-Services Rs262 billion (20 per cent),” he added.

Saleem said that the third myth is Pakistan’s defence budget has been increasing at a high rate. In the 70s, the allocation for defence amounted to 6.50 per cent of the gross domestic product (GDP), he added.

He stated that in the financial year 2001-02, 20 years ago, the allocation for defence amounted 4.6 per cent of the GDP, whereas budget 2020-21 has allocated Rs1,289 billion which is 2.86 per cent of GDP.

“In the 60s, Pakistan Army’s budget as a percentage of total expenditures hovered around 30 per cent. In budget 2020-21, Pakistan Army’s budget as a percentage of total expenditures has come down to 8 per cent,” Saleem said.

He stated that the fourth myth is that Pakistan has a large military. “There are at least 64 countries in the world who have more military personnel on a per capita basis than does Pakistan,” he said.

These countries, he added, include Turkey, Iran, Iraq, Switzerland, Italy, Norway, Singapore, South Korea, Russia, Sri Lanka, Egypt, Libya, Kuwait, Thailand, Saudi Arabia, Qatar, UAE, Israel, Estonia, Vietnam, Slovenia, Botswana, Mongolia, Yemen, Kazakhstan, Cuba, Mauritania, Croatia, Chile, Somalia, Albania, Sao tome and Principe, Namibia, Angola, Cambodia, Uruguay, Bolivia, Romania, Morocco, Lithuania, Portugal, Burma, Algeria, Azerbaijan, Bhutan, Burundi, Bulgaria, Columbia, Serbia and Montenegro, Cyprus, Greece, Armenia, Djibouti, Maldives, Oman, Belarus, Jordan, Syria, Laos, Bahrain, Brunei, Eretria and North Korea.

He pointed out the fifth myth is that Pakistan’s military expenditures are the highest in the world on a per capita basis.

Saleem stated that Pakistan’s military expenditures on a per capita basis are actually one of the lowest on the face of the plant. Israel spends $2,000 on a per capita basis and Pakistan spends $22 per capita.

For him, the sixth myth is that the military’s commercial undertakings are a burden on our economy.

“Fauji Fertilizer is one of the highest taxpayers in Pakistan. In 2019, Fauji Fertilizer paid a wholesome Rs42 billion in taxes and duties. Fauji Cement deposits around Rs10 billion a year in the treasury on account of income taxes, excise duty and sales tax,” he said.

He stated that the fact is Pakistan spends 2.86 per cent of its GDP on defence, while the global average is 2.18 percent. “Yes, we do spend a higher percentage of our GDP on defence than the global average,” Saleem said.

He added that countries that spend even a higher percentage of their GDP on defence than Pakistan does include Saudi Arabia (8 per cent), Israel (5.3 per cent), Russia (3.9 per cent) and United States (3.4 per cent).

Saleem maintained that it is also a fact that Pakistan Armed Forces are the sixth largest in the world but our expenses on a per soldier basis are the lowest. “The US spends $392,000 per soldier, Saudi Arabia $371,000, India $42,000, Iran $23,000 and Pakistan $12,500 per soldier,” he claimed.

Agreeing with him, economic expert Dr Ikramul Haq said that his calculations are correct and depict a true picture.

“In the media, there is dissemination of misinformation about the budget allocations for defence and benefits available to them,” he said. “The largest burden on national exchequer is debt servicing that increased monstrosity due to wrong economic and fiscal policies of civilian regimes since 2008.”

Dr Haq shared that only about 10 per cent officers reach the rank of brigadier that is BPS-20 and when compared to the ratio of civil services, it is extremely low.

He added that only about 2 per cent officers become major generals and this average is further reduced for lieutenant generals.

The economic expert said that ratio of similar grade officers in civil services is much higher. He added that the allowances and benefits of legislators are much more as they enjoy free residences and vehicles, air tickets, etc.

“All armed officers pay their utility bills with no exception whatsoever but judges of higher courts get tax-free benefits of electricity and petrol, including tax-free cash judicial allowance,” Dr Haq pointed out.

He said that all officers of armed forces having taxable income pay income tax that is deducted at source for all ranks. If official residence is allotted, house rent is deducted from officers or all forces, he added.

He further said that Army Welfare Trust (AWT) as a commercial organisation is self-governing and generates funds through various businesses, and then deposits taxes in the government’s treasury.

#One brother posted half article so i posted complete report with Link .

https://profit.pakistantoday.com.pk...ths-and-facts-about-pakistans-defence-budget/

 

[Asfandyar Bhittani]

17 percent of total expenses is not small amount.

17 percent of the federal budget. Not Total. Military share in provincial budgets is 0%.

 

[Pakistan Ka Beta]

17 percent of total expenses is not small amount.

After 18th Amendments and transfering of Education ( except HE ) , health and Tourism ministries e.t.c to Provinces (for which NFC share of Provinces were increase in 2010 after 18th Amendment ) , its not big amount either . Study 18th amendment and 7th NFC , you will understand what i am saying .

 

[Homo Sapiens]

This year, defence budget has been ramped up to PKR 1.29 trillion (without defence pensions) and PKR 1.66 trillion (with defence pensions)

This 1.66 trillion PKR defence budget with defence pension is exactly 10 billion USD.(1 USD= 166 PKR today). On the other hand, Indian defence budget with defence pension in this fiscal year is 4.71 trillion INR or 62 billion USD. Pakistan spend just 1/6th of what India spend in defence. Still Pakistan is maintaining nuclear and conventional military balance with India. Isn't it a remarkable feat?

 

[Shah_Deu]

It is better to spend on our own forces rather be like countries like Japan, Germany and Saudi Arabia financing partly or fully the stay of foreign forces on their own land.

Either we have our own forces and spend on them or be ready for another army to be on our land and financed by our money.

 

[Homo Sapiens]

It's actually $11 billion because when taken at today's exchange rate their GDP will not even cross $250 billion.

I used today's exchange rate. 1 USD = 166 PKR today. The 1.66 Trillion Pak Rupees translate to exactly 10 billion US Dollar.

 

[Protest_again]

I used today's exchange rate. 1 USD = 166 PKR today. 1.66 Trillion Pak Rupees translate to exactly 10 billion US Dollar.

Sure. My comment was for other dumb Pakistanis who would use your comment to negate what I said about their defence spending in terms of percentage of GDP.

 

[KeyBORED Warrior]

Lol. Its 1.59 trillion including pensions (as in 1.23 trillion +.36 trillion), you dumbos. That constituted 50% of federal revenue.

@Pakistan Ka Beta Your entire budget is a bogus document

Atleast we don't inflate our gdp and annual growth rate figures only to be humiliated by one of our own economists, dipshit.

Also it takes a petty indian (like most of u) to poke your hairy nostrils into a place where nobody asked for your opinion. The defense budget is still way too low for a country our size and with and enemy of your size albeit i am ahsamed to even call u an enemy. You don't even deserve that title. The defense budget is 1299 out of 7137 which is 18 percent contrary to what most libtards and gangus like you would want to believe. Its the debt servicing that takes up the chunk of the budget and we need serious reforms to put the economy on track. One more thing, more than half the economy is not even documented for so the actual economy is touching a trillion dollars but most of that is black money. Still with a minuscule budget we manage to beat your pathetic lil gangu *** every single time. On the other hand when facing an enemy thrice your size, you wetted your dhotis and surrendered without putting up a fight. Yet here you are arguing like the petty lil gangu that you're.

 

[313ghazi]

What have dollars got to do with it? We don't pay our armed forces in dollars.

 

[Protest_again]

Atleast we don't inflate our gdp and annual growth rate figures only to be humiliated by one of our own economists, dipshit.

Also it takes a petty indian (like most of u) to poke your hairy nostrils into a place where nobody asked for your opinion. The defense budget is still way too low for a country our size and with and enemy of your size albeit i am ahsamed to even call u an enemy. You don't even deserve that title. The defense budget is 1299 out of 7137 which is 18 percent contrary to what most libtards and gangus like you would want to believe. Its the debt servicing that takes up the chunk of the budget and we need serious reforms to put the economy on track. One more thing, more than half the economy is not even documented for so the actual economy is touching a trillion dollars but most of that is black money. Still with a minuscule budget we manage to beat your pathetic lil gangu *** every single time. On the other hand when facing an enemy thrice your size, you wetted your dhotis and surrendered without putting up a fight. Yet here you are arguing like the petty lil gangu that you're.

You are pretty poor at this. Go and troll somewhere else.

 

[Death Professor]

I am not in the mood to argue with any one, for multiple pages. I already know its a waste of my precious time. Every time when the budget is announced the chutiyas from Indian chutia community come here with the same old mantra"defense budget bla bla", nothing new here. I can assure you, bookmark it, they will come again next year too with the same type of whining.

The bottom line is Pakistan's defense budget including pensions is almost same as India's defense budget as a percentage of the total federal budget.
@KeyBORED Warrior @Pakistan Ka Beta
I warn you see a sample its a thread from last year, this will go on for multiple pages with out an end in sight, the mission is obvious, its wastage the time. The indian chutias get paid by their media cell, I didn't even knew that I argued with the same chutia last year too, with his same deluded arguments(its just seem as copy pasta now, without any effort). As I said before, been there, done that.
https://defence.pk/pdf/threads/india-lands-on-moon-pakistan-should-b-happy.634541/page-5

As for budget deficit, sure we have been through rough time. And yes, we have certain issue with keeping budgetary disciple. But its not like we are the only one on this world having issues with that. India too have the same issue but to a little bit lesser extent.

Pakistan recorded a Government Budget deficit equal to 5.80 percent of the country's Gross Domestic Product in 2019.

India recorded a Government Budget deficit equal to 4.59 percent of the country's Gross Domestic Product in the 2019-20 fiscal year.