ISLAMABAD:
With an active war in the immediate neighbourhood, and militancy within its borders, Pakistan allocated a lion’s share of Rs643 billion to the defence budget for fiscal year 2013.
The allocation for upcoming fiscal, however, is 10.2%, or Rs59 billion, higher than allocation for the outgoing year, Rs584 billion. With inflation around 11%, this means a net decrease in defence allocation in real terms.
The military overspent by Rs15.2 billion from its original allocation of Rs569 billion. The revised allocation for the outgoing fiscal was attributed to the withholding of Coalition Support Fund by the United States due to strained ties between the two countries.
Pakistan has not received a cent from the United States under CSF since December 2010. The fund was established in 2001 to cover some of the costs incurred by Pakistan in the fight against terrorism.
Details of allocation
According to the budget document 2012-13, of the Rs545.2 billion allocated to defence spending, Rs229.4 billion have been allocated for employees-related expenses, Rs143.2 billion for operating expenses and Rs120.5 billion have been earmarked for physical assets. Over Rs98 billion has been allocated for pensions of military personnel, though that has been listed under the civilian budget and there is a separate allocation for security-related expenses. Critics say this move seeks to conceal the actual defense budget.
Scrutinising defence spending
Calls have been made for greater scrutiny of defense spending since the May 2 Abbottabad raid that embarrassed the military establishment over their ignorance of Osama Bin Laden’s whereabouts and the US operation.
Following the incident, Army chief General Ashfaq Parvez Kayani called for diverting the US military assistance to the civilian authorities.
The defence budget, however, has never been debated in detail in parliament.
Keeping up with the neighbours
Pakistan raises its defence spending every year because of its historically uneasy relations with neighbouring India – last year both neighbors matched each other by equally raising their defence spending by 12%, though the size of Indian defence budget is much higher than that of Pakistan.
Earlier this year, however, India further boosted military spending by 17% to $40 billion, as it seeks to counter China’s rapid military build-up and its traditional rival Pakistan. Relations between the nuclear-armed neighbors have improved in recent years though after the two countries agreed to resume the peace process suspended following the November 2008 Mumbai attacks.
Defence analysts, however, believe that given the internal security challenges, much of the defense budget would be spent on the fight against militancy within Pakistan.
Published in The Express Tribune, June 2nd, 2012.
COMMENTS (42)
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@Dude: "@H.K.L: Zamir Malik is right with a figure around 3 percent as recently some economists argue that GDP was overstated in the past so all of the figures were revised so 2 percent obviously gone up by a fraction as well." Dude, From 2 to 3, the fraction is a full 1/2. Equals 50%. Some increase indeed. Also if the GDP numbers were overstated, what makes you so certain that the defence budget numbers are not understated. If we go by your logic, it straight away sends the number to 4 percent of GDP. Add to that pensions etc that have been moved to civilian accounts and you have number well around 5 %. Need any more maths?
@H.K.L: "@adnan: You talk like the army buys weapons to decorate their homes!"
Well they certainly buy arms whose side effects result in their homes getting decorated as well.
@Sher khan: That's true. And that is because the state of US has a military. In Pakistan, military has a state. Get the generals to stop gobbling the state's resources with no results whatsoever to show, and then people will stop questioning. In any case the military has had a free joy ride till now when they could control the dissemination of information. It's only now with the internet and other media developing sufficiently that questions are being raised. So bear the questions or answer them.
@Nadeem: You forgot to mention fewer Mercs and BMWs. Those are the real toys for the boys. Their status symbols.
@Peeru Shah: Yeah. And hasn't it been long since the pot has been kept boiling. That is precisely the point that many people make. That the pot has been kept deliberately boiling to ensure that a big chunk of this pie is always available to the army.
@Zamir Malik: What an equation it will then be: Rich Arrmy + Poor People results in Richer Army and no more poor people
Don't forget to note that after the defense, most would go to Punjab govt. Yet they do not take any responsibility and keep blaming the federation on health crisis. The current govt has devolved lots of powers and autonomy to provinces and major share of the budget as well.
You have all but abandoned the WOT - your barely on speaking terms with your supposed allies - haven't launched a major military campaign in years - and interestingly enough your abandoning the WOT hasn't resulted in reduced military budget. I would observe that the size of your military and it's related budget has nothing to do with the WOT - no doubt the American's believe that as well which is one of the reasons they dispute the amt they owe you.
Are not the military businesses (record profit for fauji fertilizer) doing well, where is all that money going?
@Sher khan: Want to compare the living standards, economy, democratic institutions and level of education between Pakistan & USA as well?
Could someone with knowledge clarify the following point to the readers like me?
Where is the $14 BILLION foreign remittances exactly are spent by Pakistan government. Public does get Pakistan rupees (from the unlimited currency printed by the government) while dollars are kept by the government.
Where does money for sustaining fastest manufacturing nuclear bomb and missile industry come? Is it from the regular defense budget or hidden somewhere else?
Where do the billions of profit earned by the Pakistan military (fauzi) business enterprise go?
Where from the frequent mid-year increases in defense budget come? Do they come by slashing public development funds?
If defense budget is increased by 11% to compensate for the inflation, does this inflation rate apply to public sector by increasing their budget to another 10%?
I think more funds should be diverted towards defence ... thats the only thing left intact (to some extent) and we don't want it to be another PIA or Railways ... at least it is being used to buy more APCs, tanks and airplanes ... education and health sectors do not need MORE provided the existing allocation is fully utilized !!!!
All those who are criticizing defense budget are the ones who always support war on terror and stree on Pak Army's involvement in it. Two contrasting views by pseudo-intellectuals....:)
Military should get out of this war, their wont be any problem related to money or dollars
@H.K.L: Pardon my cynisim, which is based on the simple observation that a vast majority of our country's miseries have been wrought on it by an army that wants to control everything despite the fact that it has one of the poorest fighting record in the world. Despite proven incompetence, the army believes - and wants the rest of us to believe - that it should formulate our internal and external policies ("The Constitution? What is that?"). So when there is a budget cut, powerless civilians like me cheer and let out some of our steam. Get it?
Without sounding like an Indian, may I ask the following questions ?
1) How many times has a neighboring country attacked Pakistan, that every successive budget warrants such huge allocations? 2) If the answer to the first question is " Zero " , than is all this, so that Pakistan can commit the first act of war with neighbors ? 3) What other pressing arguments have taken place to deny welfare schemes in favor of mindless arming of the defense forces ? 4) Are there alternate plans afoot to generate income that has been denied to more important sectors and diverted to defense ? Electricity generation , Development of Baluchistan - etc etc. 5) Is it worth spending on defense and be seen with a begging bowl around the world. 6) Why cant gigantic strides in defense and related fields ( As claimed by the government ) be replicated in other more human friendly areas so that the common man's misery be alleviated ? 7) Why should " Whats good for Goose is good for the gander " be applied here ?? If India spends 17 % on defense ( May be it has the spare money ) why should Pakistan spend as much relatively, when it is far far worse of than India ?? By the same yard stick India is not strangling itself by competing with a larger and for more prosperous neighbor like China even though tensions with them are as high as ever ? We, in India suffer much the same with mindless politics of a few people in power and unless we ask questions, nothing changes.
@H.K.L: Zamir Malik is right with a figure around 3 percent as recently some economists argue that GDP was overstated in the past so all of the figures were revised so 2 percent obviously gone up by a fraction as well.
@adnan: You talk like the army buys weapons to decorate their homes!
@Zamir Malik: Our defense budget is only around 2% of the total GDP.
@Basit: You should then also dissolve your assemblies and become a colony of a developed nation because your government hasn't done anything to improve the country either!
@???? Open your eyes again. 10.2 percent is the increase rate and 11 percent in Inflation rate that have been written in the above news.
@Indian: Do you even know the difference in GDP and Total Budget??. Pakistan spend only 3.5 percent of the GDP on Pakistan Army. Go and Study Economics and then comment here.
Oh you poor babes! How unjust. Fewer golf courses, less palatial homes, fewer khaansamas, fewer useless toys-for-the-boys.............what is the world coming to?
@zamir malik With more than 35000 dead civilians, two lost wars and 3 major coups on their CV, i am not sure why you want ET to treat the army the way you want. Doesnt make sense.
please give our flesh to army also.mind u that this budget does not include the interest payment for those loans which have been used to buy military equipment.and also remember that war against terrorism is also due to deeds of our military establishment which participated in afgahan war and created taliban and now fighting against taliban.
Does any one really believe these number from corrupt politicians and bureaucrats. This country was created for the rich and corrupt feudals, industrialists, politicians, bureaucrats, judges, and generals.
1/5th means 20%, not 10.2%. then why the heading says fifth of the budget not tenth of the budget
War whether faught against some other nation or against local fundametalist miscreants has a hefty price tag. Keeping the current precarious security environment in mind, Pakistan doesn't have much choice but to spend heavily on defence budget. Wheter you like it or not, there are not much options available.
Same old story. A big chunk of budget goes to military. For what?? Then goes to the sectors like PM and President houses and on their security.
Same old story. Peanuts to Health, Education, Communications, Housing and most importantly Internal Securtiy,
Lets see how Pakistanis will handle 20% of its GDP which is performing at its all time low being poured into 'Difa of Pakistan'.........
Rest 80% of budget would go to wonderful democracy we've had and country will progress further under Sir Zardaris, Gillanis and Mirzas. These democracies have eaten up our country much more than the military.
@Max: It is important to be a welfare state for the security establishment. During military rule, they are used to a certain lifestyle. That lifestyle has to not only be maintained but increased. If all sections of society expect increments, so do the armed forces. If they are not taken care of, they have a right to have another coup. power and wealth sharing must be for all exclusive segments of upper society.
@Nikarish: Mind your own business please. Do you actually understand the difference between two types of states that you mention.
well i believe at least 100 bilion should b diverted 2wards d ppl frm armies budget..its too much 4 dm...
Does this extra spending by the army include Pasha's trips to Mansoor Ijaz? In addition according to Mansoor Ijaz the then ISI chief Pasha also toured gulf countries to consult against the elected govt.
@Rida: My GOD how intelligent of you Rida. that is the best understanding. And believe me military doesn't even share bits with where and what they spend. I know one thing for sure, generals in the military during Musharaf's era and later have been known for lavish squanders, but Kayani has controlled that a lot and military budget is spent properly unlike government which cant explain where the remaining 89.8% of the budget goes.
@Rida: Pak is not a welfare state, it is a security state run by the army.
In fact, the zardari govt is the only to finish its complete mandate.
Pakistan's military budget should not be debated in the parliament because all politicians are corrupt and have no right to ask about it from our saviours. People should also remember that Pakistan is a welfare state for our security establishment.