As the defence budget continues to gobble up almost one-third of the total federal budget, federal authorities have begun crafting a proposal to make the provinces foot part of the bill for defence spending from 2015 onwards.
The proposal, which is currently in its initial stages, will be discussed once talks for the 8th National Finance Commission (NFC) Award formally kick off, a source in the finance ministry told The Express Tribune.
Under the Constitution, the defence budget falls under the federal government and for that reason all defence-related expenses are borne by the federal government.
The accumulative defence spending for the current fiscal year has been estimated at Rs880 billion or roughly 30% of the Rs3 trillion federal budget, according to the budget strategy paper. The amount includes expenses on army pensions. Defence spending is expected to increase to Rs970 billion in the next fiscal year. The federal government’s financial constraints after the implementation of 7th NFC Award, which is in its third year of its five-year life span, lies at the heart of the proposal.
In the 7th NFC Award, the share of the provinces in the federal divisible pool had been increased to 57.5% — an increase of almost 10% over the previous award to the provinces, which took political parties 14 years to agree on.
According to sources, the finance ministry has embarked upon a mission to find new ways in which the provinces can share some federal responsibilities, as the Constitution does not allow a reduction in the provinces’ share in the divisible pool. Even in the next NFC Award, the provincial share has been guaranteed at minimum 57.5%.
The Planning Commission has advised the finance ministry to take up the defence fee proposal along with some other key outstanding issues at the appropriate forum, which is the NFC.
Published in The Express Tribune, March 24th, 2013.
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Rs 500 billion subsidy each year for public sector enetrprises (PIA, railways etc) and Rs 500 billion subsidy each year for electricity. Cut these and your troubles will be over.
Provinces generate revenues and naturally they have the right to decide its utilization.
First of all we need a major reform in Our Security Apparatus. We need a Joint Command System for All Armed Forces of Pakistan which should include the Police of all the Provinces as well. At present we have One Army , Levies system and then Police and they are functioning incoherently. The Pakistani Police lacks proper facilities to train while Army took the major share and also Army Officers enjoy with Plots and clubs everywhere in Pak whereas Levies and Police get nothing while they share the same burden to protect the citizens of our country. We actually need a new system where Police should be trained alongside with Army in the same training units and they should share the Infrastructure of the Armed forces and all should act under one command and also Pakistani Army must end their Mafias of Property and all Businesses as well.
First they broke the national bureacracy ( thanks to Musharraf destroying DMG) and now they want provinces to pay for army ...
What mess of Musharraf and PPP!
By the way , PKR 880bio is too much . This should be brought down to pkr 500bio.