Defence ministry wants bigger slice of budget pie

Published: April 21, 2016
Says current indicative budget of Rs860b is insufficient. PHOTO: PAKISTAN NAVY

Says current indicative budget of Rs860b is insufficient. PHOTO: PAKISTAN NAVY


The Ministry of Defense has termed the indicative defence budget of Rs860 billion for next fiscal year insufficient, seeking its linkage with threat perception that it said was increasing due to current geo-political situation.

Against its current 60% share, the defence ministry also wants to take 100% of the Coalition Support Fund that the United States disburses in return for the country’s services against the war on terrorism. The remaining 40% goes to the federal government.

Budget 2016-17: India increases military spending by less than 1%

The defence ministry also sought one billion dollars annually for next eight years to develop Federally Administered Tribal Areas (FATA).

The defence ministry made its case for increase in budgetary allocations and a claim over 100% CSF payment while giving a briefing on mid-year review of defence budget to Senate Standing Committee on Defence on April 13. The Chairman Standing Committee, Senator Mushahid Hussain Sayed, presented the report to the upper house of Parliament on Wednesday.

For the current fiscal year 2015-16, the government has originally approved Rs781 billion for the three armed forces. The Ministry of Finance has proposed Rs860 billion for new fiscal year 2016-17, beginning from July. The proposed budget is one-tenth or Rs79 billion higher than this year’s allocation.

However, the defence ministry has sought Rs920 billion – Rs139 billion or roughly 18% higher than this year’s budget. The Rs920 billion demand is only for meeting the needs of the armed forces. The allocations for defence procurements are over and above this amount. The finance ministry was not immediately in a position to respond to these demands. Early this month, Finance Minister Ishaq Dar had met the army chief to discuss the military’s budgetary requirements.

The report states that the defence ministry has demanded that the budgetary allocations of three armed forces should be linked with the threat perception. The defence ministry said that the threat perception has “markedly enhanced due to the current geo-political situation and Pakistan’s strategic location in the area,” according to the report.

Budget 2016 preview: For every rupee paid in taxes, 26 paisas will go to defence

The defence ministry also made a claim over 100% of the CSF, according to the committee’s report. “The 40% deduction from the CSF reimbursements by government of Pakistan may be discontinued,” the ministry proposed to the parliamentary body.

Under a formula agreed under Pervez Musharraf’s regime, 40% of the CSF receipts go to the civilian government. So far, Pakistan has received $13 billion from the US. The ministry of defence informed the committee that it is the last year of the CSF arrangement and the US has yet to disburse $200 million.

The report also reveals that during the recent meeting of Pak-US Strategic Dialogue, Pakistan proposed establishing a border management fund worth $100 million. It claimed that the US government has agreed that a robust border management is essential for maintenance of peace on Pak-Afghan border and further negotiations on the matter would continue.

The defence ministry also proposed to the US authorities that $8 billion were required over a period of next five to eight years for the development of FATA, according to the report.

It has also demanded that sales tax and customs duties that the government of Pakistan charges on defence imports should be waived off. The National Logistic Cell and Frontier Works Organisation are already exempted from payments of income tax.

In yet another demand, the defence ministry said that the powers to waive off austerity measures of defence organisations should be given to the secretary defence by taking it from secretary finance.

The ministry has also sought preferential treatment in pensions and said that there should be one rank-one pension formula for the defence services. It has also proposed that a Pay and Pension Commission may be constituted for addressing the issues of increase in salaries.

Published in The Express Tribune, April 21st,  2016.

Facebook Conversations

Reader Comments (8)

  • KM
    Apr 21, 2016 - 9:32AM

    Why not, they seem to be doing all the work anyway!!!Recommend

  • Raees Ahmad
    Apr 21, 2016 - 11:39AM

    Do we need tanks, fighters, submarines and stealth to fight against the terrorists, the real threat to Pakistan? More over if army stops patronizing these banned organizations they can be eliminated. How can Chotto gang possess G3 and other weapons military uses? What are our security agencies doing? What is the usage of about 4 dozen types of intelligence agencies in Pakistan? What about if a police officer informs me that my snatched car has gone to depth beyond police’s limit? Why can parliament permit every Pakistani to defend himself. Recommend

  • Haji Atiya
    Apr 21, 2016 - 12:44PM

    Its never enough for them..but, sure, take that slice from the 200+ Panama and elsewhere offshore ‘investors’ and leave some from the official budget for mundane items like education, health, infrastructure, etc.Recommend

  • People of Karachi
    Apr 22, 2016 - 1:02PM

    People of Karachi contribute the lion’s share of the federal budget and we the masses are forced to travel in chingchi while in Lahore they have Orange pink blue transportation .
    We want a mass transport system for Karachi first !

    There would be a heat wave soon and hundreds will die ( very surely ) ,Karachi’s water scarcity is getting worse ,there is no water so we want water first .Recommend

  • Masood Mirza
    Apr 22, 2016 - 7:07PM

    You (PMLN) can’t resist when your corruption is exposed in panama leaks…or when you need army to fight street level criminals. However will certainly help to extend your inept governance time period.Recommend

  • Adnan Siddiqui
    May 20, 2016 - 10:45AM

    Just let them run the country. At least, we won’t hear about any corruption even if they are the same.Recommend

  • Last Word
    May 20, 2016 - 6:31PM

    My heart goes to the people of Pakistan the land of my ancestors, who are suffering because the foreign policy makers in this country have created an imaginary threat perception from India for the past six decades. They have kept the pot boiling on LoC by sending jihadis and do not want peace with India as it would dilute their predominance in Pakistan. The Pak defence budget can be reduced to one-third and balance can be usefully spent on boosting frail economy and welfare of the poor. As an Indian one sincerely hope that there will be change in mindset of the present rulers of Pakistan soon who would leave hostile attitude and make peace with India so that people of both countries prosper and live peacefully. Recommend

  • Aleem
    May 20, 2016 - 9:04PM

    Most of the funding being asked for is the development of FATA. This should be a Fed government responsibility in any case.

    That the military is asking for more is quite normal given the massive wear and tear on the equipment and formations engaged in the FATA operations.

    National security is never cheap. All of Pakistan’s neighbors are spending more (India, Iran, Afghanistan, China).

    The only option available to the government is to diversify its sources of revenue, invest in services sector and tax all sectors fairly (including the agriculture sector).Recommend

More in Pakistan