Pakistan Federal Budget FY 2020-21: Analysis and Discussion Thread

[CriticalThought]

Lol. Debt accumulation is the direct result of persistent and massive trade / current account deficits.
View attachment 641223 View attachment 641224 View attachment 641225 View attachment 641226


No. It happened under opposition leader Bhutto who persuaded Yahya to let him become PM, despite loosing elections.

You are making the amateur mistake of assuming correlations mean causation. Two side by side graphs mean nothing. You can have a low, even negative CAD, but if you pile up short term debt that you are unable to pay, you are shooting yourself in the foot. A positive CAD only shows you are importing more than you export. If at the same time you pile up long term debt, there is no problem. If you pile up short term debt, but you fiscal reserves are large, there is still no problem. You could pile up short term debt, but if you have a well planned strategy to pay this back, there is still no problem, but it is a high risk move. The traitors in the previous government increased short term debt, while widening the CAD, and as we all know, had absolutely no plan for paying the debt back. An engineered crisis.

 

[Norwegian]

Agree, should have been managed a lot better, same with all of the current outflows. Hopefully the current government breaks this chain of mismanagement.

It's no rocket science. Previous govt could have just asked China to invest CPEC in their own currency. But this would not have been so beneficial for Chinese companies so all the returns on CPEC investment were fixed on US Dollars, bankrupting State of Pakistan. Congratulations.

 

[CriticalThought]

No. It happened under opposition leader Bhutto who persuaded Yahya to let him become PM, despite losing elections big time.

When you can't swallow reality, swallow a pill. Like leader, like follower.

 

[Jungibaaz]

That is not accurate. Indian military budget has been declining as a percentage of GDP very steadily. It is the lowest it has ever been at 1.5%.

He probably means keeping pace in terms of capability. Financially the point is completely erroneous.

 

[jericho]

In an ideal Pakistan, just like accountability attempts elsewhere. Army should be audited, a full account of all of their current expenditure taken (“current” exp. means something different financial terms). I think the army should be asked rightly to reduce waste and any unnecessary expenditure at times like this. At the risk of sounding too political in this thread, this government will never do such a thing , and other governments have never had the guts to hold firm, let alone do it.

Interesting point here, are you aware of if any government (current or previous) which had done so (or used to but stopped for whatever reason), to what extent were they able to, what challenges they faced (or if anyone ever proposed it before) and how regularly this is done (or should be?). You can take your time for this if you don't have all the details now.

 

[Jungibaaz]

Interesting point here, are you aware of if any government (current or previous) which had done so (or used to but stopped for whatever reason), to what extent were they able to, what challenges they faced (or if anyone ever proposed it before) and how regularly this is done (or should be?). You can take your time for this if you don't have all the details now.

Hm, I’ve spent far too much time already in this thread, but sure, I will find sometime in the next few days hopefully to give you a good overview. But short answer to keep you interested; Bhutto managed it post-71, army dictators did the opposite (obviously), and civilians since then, Nawaz, Zardari, IK etc.. none of them would dare.

 

[Norwegian]

Interesting point here, are you aware of if any government (current or previous) which had done so (or used to but stopped for whatever reason), to what extent were they able to, what challenges they faced (or if anyone ever proposed it before) and how regularly this is done (or should be?). You can take your time for this if you don't have all the details now.

Only a military govt (such as under martial law) can hold generals and the military institutions accountable. Civilian govts, especially in Pakistan have no guts to do that.

 

[Mig hunter]

Increase of 11.85% proposed in #Defence Budget of Pakistan. Increase of 1.3% in #Health Budget is also proposed. 220 million Pakistanis vs 8 lakh Pakistan Army. Something really wrong here.

You forgot another aspect 42% will go to interest payment...
Jealousy has no bounds...

Government dares not to say no to constant increases in military spending. It has nothing to do with 18th amendment. But because fear of being sent home under martial law or some other judicial coup.
View attachment 641142

Just compare it in terms of dallor.. You will get to know how much increase army has got.. Moreover one aspect we always forget we will pay 42% of the budget in interest /loan pyment... Think before you speak

 

[Norwegian]

Just compare it in terms of dallor.. You will get to know how much increase army has got.. Moreover one aspect we always forget we will pay 42% of the budget in interest /loan pyment... Think before you speak

I am not bashing anybody. Just showing the data about ever increasing military budget

Stop spreading fake news please

https://twitter.com/x/status/1271484475067768835

 

[Imran Khan]

I am not bashing anybody. Just showing the data about ever increasing military budget



Stop spreading fake news please

https://twitter.com/x/status/1271484475067768835

its viral now nation want answer

 

[8 pass charlie]

90 of Facebook posts right now that I am seeing are comparison between health education vs defense budget.an how army is sucking 85% of.our resources and budget.hahahaha.corona Ki tarah ise b yahoodi saazish declare kardo

 

[Norwegian]

its viral now nation want answer

But it's still fake

90 of Facebook posts right now that I am seeing are comparison between health education vs defense budget.an how army is sucking 85% of.our resources and budget.hahahaha.corona Ki tarah ise b yahoodi saazish declare kardo

That's the result when the nation is spoon fed anti military propaganda 24/7 on social media

 

[Syed1.]

When we will start to educate illiterate Pakistani ? No focus on human material develop

So cycle will continue...


View attachment 641195

Perhaps you should have gotten an education as well to sift through fake news and actual facts. Health and education are provincial subjects and money would be allocated for each under the provincial budgets. This amount by the federal government is only for Islamabad

 

[Xestan]

Since we are talking Defence Budget, no sane Pakistani would deny the need to spend money for the Defence and it is clear that it'll always be more than health and education, but we can always question where the money is being spent on Defence.

Auditor General's office is mostly restricted to audit Military accounts, Parliamentary committee on Defence is toothless here, no explanations are ever presented there. I'll be surprised if even Prime Minister office is entertained on such request.

There are two types of spending in Military, combat-related spending and non-combat, our non-combat spending which primarily goes to maintaining cantonments and other facilities operated by the Military, and also the new construction is too damn high. A lot of retired officers have spoken off record, especially people from other services apart from the Army, that our non-combat spending can be greatly reduced if austerity is actually implemented in the Army.

In these economic crisis, there has to be cost cutting everywhere, but with the Army, I dont think anyone is going to dare, especially not the current Government.

 

[Pakistan Ka Beta]

That is not accurate. Indian military budget has been declining as a percentage of GDP very steadily. It is the lowest it has ever been at 1.5%.

i m not talking about GDP percentage . I m talking about Indian 57/58 Billion US dollar and Pakistan 7.9 Billion US dollar defense budget gap to not increase further , 7:1 already . So when India increase defense budget every year , Pakistan also increase it to some extent . After 5th August 2019 situation is tense to say the least .