Pakistan has decided to raise its defence budget by 31 per cent, from Rs.34300 crore to Rs.44800 crore for fiscal 2010-11.
Official sources told the Daily Times that during a presentation to the National Assembly Standing Committee on Finance and Revenues, chaired by Pakistan People’s Party Information Secretary Fauzia Wahab at the Finance Ministry, Finance Secretary Salman Siddique said the Defence Ministry had requested an increase of Rs.11000 crore in the defence budget for 2010-11, but the federal government had approved an increase of Rs.10500 crore.
During the fiscal 2009-10, the federal government allocated Rs.34300 crore for defence expenditure. However, due to military and other operations, an additional amount of Rs.6000 crore was spent. Due to additional expenditures, the total defence expenditure for 2009-10 will reach Rs.40300 crore by June 30, 2010.
The secretary said the federal government’s total budget outlay during 2010-11 would be Rs.2.488 lakh crore, out of which Rs.1.7 lakh crore would come from federal taxes collected by the Federal Board of Revenue. He said Rs.32700 crore would come from foreign aid and loans and the remaining amount would be collected from non-tax revenues.
The government would transfer Rs.1.036 lakh crore to the provinces as direct transfers and their share in the National Finance Commission Award, and keep Rs.1.412 lakh crore for its expenditures on defence, debt servicing and running the civil government.
The finance secretary said the government is fully determined to enforce the 15 per cent VAT in the next fiscal year that would help increase both, revenues and the tax base.
During the ongoing fiscal year, the country’s total expenditures will reach Rs.2.927 lakh crore and revenues below Rs.2.164 lakh crore, resulting in a budget deficit of Rs.76300 crore.
