Pak slashes development outlay to make way for Rs110 bn increase in defence budget
By ANIThursday, September 23, 2010
ISLAMABAD - Pakistan, projecting an increase of 110 billion rupees in its defence budget, has informed the International Monetary Fund (IMF) that due to the post-flood situation, the defence budget will be 552 billion rupees against the budgetary allocation of 442 billion rupees for the ongoing fiscal year 2010-11.
The increase in Pakistan’s defence budget was disclosed when the IMF released the country’s revised consolidated government budget projections submitted to the IMF Executive Board, the Daily Times reported.
The government has projected the hike in its defence budget at a time when development and non-development budgets of the civil government are being slashed by fifty per cent and twenty percent respectively, in a bid to create fiscal space for the rehabilitation of flood-victims in the country.
The consolidated expenditures of the federal and provincial governments are set to increase from 3.259 trillion rupees to 3.292 trillion rupees, with an addition of 33 billion rupees in the post-flood scenario, while total revenues are also to be increased by 33 billion rupees, from 2.574 trillion rupees to 2.607 trillion rupees.
However, the government’s Public Sector Development Programme is projected to be decreased from 280 billion rupees to 250 billion rupees, and provinces’ annual development plans to be reduced from 370 billion rupees to 340 billion rupees, to ensure a saving of 60 billion rupees. (ANI)
