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Budget for armed forces be increased: MoD

Posted on: Thu May 12, 2011

ISLAMABAD : The Ministry of Defence has requested that budget for the armed forces should be increased from existing Rs 442 billion to Rs 524 billion in the next fiscal year, 2011-12, it was learnt. Sources said that a detailed briefing was given by representatives of defence ministry on the budget of armed forces for the next year to the National Assembly s Standing Committee on Finance held with Fauzia Wahab in the chair on Wednesday.

The armed forces have demanded allocation of Rs 582 billion but the Defense Ministry, after reviewing their demand, has proposed to the Finance Ministry for allocation of Rs 524 billion in the next fiscal year for defence budget. The Defence Ministry reportedly proposed allocation of Rs 202 billion for employees related salaries, Rs 127 billion for operational expenses, Rs 148 billion for physical assets and Rs 46 billion for civil works. The committee was reportedly informed about the total manpower strength in the armed forces.

In response to a question that Ministry of Finance has indicated to increase the defence budget from Rs 442 billion from current to Rs 495 billion for the next fiscal year, she said that the possibility of giving more than Rs 495 billion for defence can not be ruled out provided that it does not exceed 3 percent of the GDP.

Fauzia Wahab said that total disbursement by the US on account of Coalition Support Fund (CSF) stood at 8. 04 billion dollars so far against 12 billion dollars claim by Pakistan. She said that 3. 5 billion dollars are outstanding against the US for CSF. Fauzai Wahab said that the representatives of Defence Ministry also complained that they were not getting 1. 5 billion dollars for Armed Forces Development Plan (AFDP).

To a question about withdrawal of sale tax exemptions to the defence stores, she insisted that they have already been withdrawn and stated any exemptions in future would only be allowed by the Parliament. The officials of the Defence Ministry said to have told the committee that no amount was disbursed by the US for CSF in 2011 and only Rs 633 million was received in 2010.

Ministry of Foreign Affairs also briefed the standing committee about the budget spending for the current fiscal year and said that Finance Division has indicated to increase their budget from Rs 11. 527 billion in the current fiscal year to Rs 12. 074 billion against their demand of Rs 12. 274 billion for the next fiscal year.

The foreign Ministry has demanded Rs 751. 802 million for Foreign Affairs Division, headquarters and allied establishments, Rs 9. 283 billion for 117 foreign missions and Rs 2. 039 billion for other expenditures of Foreign Affairs Division (related to President and Prime Minister s visits, delegations abroad and Contribution and Subscription to International Organisations. The Standing Committee of Finance has demanded 40 percent increase in the operational budget for the foreign mission so that they could undertake trade and cultural activities.

Courtesy : Business Recorder