Defence budget jacked up by 16%
The central government on Friday proposed about 16 per cent hike in the defense budget as Pakistan continues to face security challenges at home and abroad. The budget document pegs defense spending at Rs 1,804 crore for 2023-2024 as compared to the revised Rs 1,591 crore defense expenditure allocated for the next fiscal year.
Analysts believe the 15.7 percent increase was justified given the sharp rise in commodity prices and the depreciation of the currency in the dollar over the past year. A closer look at the budget breakdown reveals that the Rs 1,804 crore figure does not include Rs 563 crore for pensions of retired soldiers and Rs 280 crore for military development schemes and other capital expenditures and Rs 58 crore on for United Nations peacekeeping operations.
According to the 2023-2024 budget document, out of Rs 1,804 crore, Rs 705 crore has been allocated for personnel-related expenditure, Rs 442 crore for administration, Rs 461 crore for procurement and importation of arms and ammunition, and Rs. 195 billion for construction works. Interestingly, all three services—Army, Navy, and Air Force—were given the same budget increases, although the military took the lion’s share based on size and mission.
Pakistan’s defense spending now stands at 1.7 percent of GDP, showing a decline compared to the previous year. Defense spending for 2022-23 is about two per cent of the country’s GDP, which has been growing in size due to economic reconstruction. On average Pakistan spends $13,400 per soldier, India $42,000, Saudi Arabia $371,000, Iran $23,000 and the US contributes $392,000 per soldier per year. However, the difference between Pakistan and other countries is that the size of their economy is much bigger than Pakistan.
Defense spending is a regular topic of discussion with some demanding transparency and open discussion of military budgets. In recent years, the government has provided more details on the defense budget. However, there has never been an open debate in parliament on this issue. Observers believe the increase in the defense budget is justified given the looming external and internal security challenges.
Despite the withdrawal of US troops from neighboring Afghanistan, Pakistan still deployed thousands of troops along its western border as well as in its former tribal areas in order to face the threat of terrorism. Similarly, tensions between Pakistan and India persist despite the restoration of the ceasefire bringing a standstill.
