Rs3,973b annual budget on June 3

[Shabaz Sharif]

I remember few years later it was close to 17Billion dollars in Dollars term.How does it increase to 40Billion dollars this soon.

I doubt FBR will achieve 2810Billion pkr target,they will miss it by 200Billion pkr or atleast 100billion

anyway can you quote me the original target for FBR this year?(Not the revised target)

2475bn which was reduced to 2275bn. Even this reduced target will be missed must likely. N have failed in tax reforms no doubt, lets see what they do next year. Year before that target was 1936bn, so N hoped 28% increase.

 

[VCheng]

And what were the previous claims?

Defence budget

What basically happened is

The Government seems to have reduced both development and non development budget in order to narrow the gap between revenue and expenses. The budget deficits has been brought down from really pathetic 5.8% to 4.8% but the Government could not afford to reduce defence budget. If we were supposed to maintain the budget deficits close to 5.8% or more as previously was the case since last few years, the total budget outlay could be well above 4300 billion rupees thus keeping the overall defence expenses to under 16%.

What has happened is that the defense spending is out of control and totally unsustainable. The debt problem is even larger. There is very little left for everything else.

waise to be honest, looking at the regional development, we have to sacrifice alot on defence, and its justifiable, no?

Spend a lot of defense? Yes. Justifiable? Nope.

Defence budget is 17.61% this year, this is low by previous standards.

The failing economy makes previous standards irrelevant going forward.

 

[farhan_9909]

2475bn which was reduced to 2275bn. Even this reduced target will be missed must likely. N have failed in tax collection no doubt, lets see what they do next year. Year before that target was 1936bn, so N hoped 28% increase.

2500-2600billion pkr is achieveable for next year.

 

[Leader]

Defence budget



What has happened is that the defense spending is out of control and totally unsustainable. The debt problem is even larger. There is very little left for everything else.



Spend a lot of defense? Yes. Justifiable? Nope.



The failing economy makes previous standards irrelevant going forward.

why not?

 

[Shabaz Sharif]

2500-2600billion pkr is achieveable for next year.

In that case N will fail again, i think they may get to 2700bn this time with tax reforms.

 

[VCheng]

why not?

Defense spending is writing cheques the economy cannot cash.

 

[Hyde]

Pakistan's total budget in 2013 was 3985 billion rupees as compared to 3973 billion rupees this year.

So despite the growth rate of 4.13% and the inflation, The budget has decreased instead of increasing. If we had maintained the budget deficits close to 5.8% last year, it is almost certain the budget would be somewhere between 4300 - 4600 billion rupees for this year. (by that logic it also means the defence budget would have remained below 16% for sure) So the government is trying to save at least 400-600 billion rupees by cuts in various sectors as been previously highlighted in other articles and threads.

The price of dollar remains stable there is hardly any difference in the total budget outlay for both years in terms of dollar.

3973 billion rupees is 40.21 billion dollars as per today's rate
Defence budget of 700 billion rupees is 7.08 billion dollars

That's 17.60% or about 1.6% increase in overall defence budget. It is logically right to say that the government only increased budget of armed forces and the salaries of government employees etc and eliminated subsidies of about 285 billion rupees to reduce the budget deficits.

 

[Shabaz Sharif]

Pakistan's total budget in 2013 was 3985 billion rupees as compared to 3973 billion rupees this year.

So despite the growth rate of 4.13% and the inflation, The budget has decreased instead of increasing. If we had maintained the budget deficits close to 5.8% last year, it is almost certain the budget would be somewhere between 4300 - 4600 billion rupees for this year. (by that logic it also means the defence budget would have remained below 16% for sure) So the government is trying to save at least 400-600 billion rupees by cuts in various sectors as been previously highlighted in other articles and threads.

The price of dollar remains stable there is hardly any difference in the total budget outlay for both years in terms of dollar.

3973 billion rupees is 40.21 billion dollars as per today's rate
Defence budget of 700 billion rupees is 7.08 billion dollars

That's 17.60% or about 1.6% increase in overall defence budget. It is logically right to say that the government only increased budget of armed forces and the salaries of government employees etc and eliminated subsidies of about 285 billion rupees to reduce the budget deficits.

Maybe they have reduced subsidies on electricity. Because this year provinces will get extra 200bn for development compared to last year. Also maybe losses on public sector has been reduced as well.

Provinces getting Rs 200bn more than their share last year: Dar

I can see next year budget being closer to 5,000bn if revenue target is archived.

I would not mind bringing the Defence budget down to 630Billion pkr of the possible allocation of 700Billion pkr and rather the 70billion pkr be used for development related projects or even into investing of energy.

Next year if the economy perform better and grow beyond 5% or as the 5.5% target.They should directly increase it to 850Billlion pkr instead

Provinces will get extra 200bn this year, so development budget have not been reduced.

 

[ziaulislam]

I would not mind bringing the Defence budget down to 630Billion pkr of the possible allocation of 700Billion pkr and rather the 70billion pkr be used for development related projects or even into investing of energy.

Next year if the economy perform better and grow beyond 5% or as the 5.5% target.They should directly increase it to 850Billlion pkr instead

well our budget high, govt and army should seriously think to bring down the no. of troops from 660,000 to around 500,000. the extra money can be put in arms procurement.
we need a leaner and more mechanized army, although the terrorism will make that difficult but post terrorism govt should cut the forces. instead focus on PAF.
as modern wars will be skirmishes based on air power

Pakistan's total budget in 2013 was 3985 billion rupees as compared to 3973 billion rupees this year.

So despite the growth rate of 4.13% and the inflation, The budget has decreased instead of increasing. If we had maintained the budget deficits close to 5.8% last year, it is almost certain the budget would be somewhere between 4300 - 4600 billion rupees for this year. (by that logic it also means the defence budget would have remained below 16% for sure) So the government is trying to save at least 400-600 billion rupees by cuts in various sectors as been previously highlighted in other articles and threads.

The price of dollar remains stable there is hardly any difference in the total budget outlay for both years in terms of dollar.

3973 billion rupees is 40.21 billion dollars as per today's rate
Defence budget of 700 billion rupees is 7.08 billion dollars

That's 17.60% or about 1.6% increase in overall defence budget. It is logically right to say that the government only increased budget of armed forces and the salaries of government employees etc and eliminated subsidies of about 285 billion rupees to reduce the budget deficits.

budget depends upon an ambitious tax target that without reforms and direct taxation is not possible.
govt will either rely on privatization for the money or cut developmental projects like this year

 

[Shabaz Sharif]

well our budget high, govt and army should seriously think to bring down the no. of troops from 660,000 to around 500,000. the extra money can be put in arms procurement.
we need a leaner and more mechanized army, although the terrorism will make that difficult but post terrorism govt should cut the forces. instead focus on PAF.
as modern wars will be skirmishes based on air power


budget depends upon an ambitious tax target that without reforms and direct taxation is not possible.
govt will either rely on privatization for the money or cut developmental projects like this year

I remember in mushy era they reduced army by 50,000? Did it happen or just a news? Even USA have planned to reduce army to 450,000. Focus should be on tech instead of numbers.

 

[ziaulislam]

I remember in mushy era they reduced army by 50,000? Did it happen or just a news? Even USA have planned to reduce army to 450,000. Focus should be on tech instead of numbers.

tell that to generals!!..
we can also rely on FC and rangers if a long war breaks though unlikely.
i think forces should not be more than 400,000.
along with 200,000 FC is enough

 

[Shabaz Sharif]

tell that to generals!!..
we can also rely on FC and rangers if a long war breaks though unlikely.
i think forces should not be more than 400,000.
along with 200,000 FC is not enough

“Pakistan Army gets 48 per cent of the whole defence budget while 20pc goes to Pakistan Air force and Navy gets only 10pc,” the senior Air force officer said.''

It only ads up to 78%, rest of 22% on nuclear, isi etc

PA need to reduce its budget to 33%, get PAF up to 30% and Navy 15%. Especially 5th generation air crafts will be expensive.

 

[VCheng]

Pakistan's total budget in 2013 was 3985 billion rupees as compared to 3973 billion rupees this year.

So despite the growth rate of 4.13% and the inflation, The budget has decreased instead of increasing. If we had maintained the budget deficits close to 5.8% last year, it is almost certain the budget would be somewhere between 4300 - 4600 billion rupees for this year. (by that logic it also means the defence budget would have remained below 16% for sure) So the government is trying to save at least 400-600 billion rupees by cuts in various sectors as been previously highlighted in other articles and threads.

The price of dollar remains stable there is hardly any difference in the total budget outlay for both years in terms of dollar.

3973 billion rupees is 40.21 billion dollars as per today's rate
Defence budget of 700 billion rupees is 7.08 billion dollars

That's 17.60% or about 1.6% increase in overall defence budget. It is logically right to say that the government only increased budget of armed forces and the salaries of government employees etc and eliminated subsidies of about 285 billion rupees to reduce the budget deficits.

Please do not forget the $1.1 billion for military pensions.

 

[Shabaz Sharif]

Please do not forget the $1.1 billion for military pensions.

How much USA pays Pakistan every year for military operation? $1 billion? This covers pensions basically.

 

[VCheng]

How much USA pays Pakistan every year for military operation? $1 billion? This covers pensions basically.

Much more than that: