Daily Times

LAHORE: A major chunk of the budget goes to Defence every year. Over the years, many governments have vowed to reduce defence spending but it has not translated into any substantive action. While the declared budget had been said to be around 2.5% of the total national output, but the government had been increasing the actual spending by 10% to 12% every year. This becomes more magnified when the fact that the total budget itself only rises around 6% to 7% per year is taken into account.

The defence budget, in theory, is meant to finance the salaries of the three armed forces of the country; Pakistan Army, Navy and Air Force. The operating expenses and the civil works related to the armed forces are meant to be financed through this budget. In addition to these expenses, the government of Pakistan spends heavily on military hardware, and security related expenditures and grants.

Traditionally the justification given for high defence expenditure is Pakistan’s historical row with India and frequent skirmishers on the borders in addition to the maintenance of balance of power in the subcontinent in the ratio of one to six. That is to say that India’s defence budget is six times the Pakistan’s defence budget and that ratio is supposed to be kept to maintain the balance of power. Add to it the frequent statements still given by the military and government officials that our defence spending is lowest in the region, especially given the volatile situation at almost all borders of the country.

Arms race is a phenomenon which has paralyzed the entire globe, but being a developing economy Pakistan is hit more due to heavy defence spending which should ideally go to education, health care and other welfare projects. ‘Threat perception’ had conventionally kept the country’s budget too focused on defence.

Reflection on the current government’s defence spending

For fiscal year (FY) 2012-13 the defence budget was Rs568 billion, for FY2013-14 it was Rs 627.2 billion which was 11 higher and by FY 2014-15 it was raised by 11% again to Rs 700.2 billion. When Federal Minister for Finance announced the prospects for the upcoming budget once again he announced an increase of a little more than 11%. He said, “The defence budget is being increased from Rs700 billion to Rs781 billion for 2015-16.

While 11 per cent may come across as already too high considering the dilapidated situation of many other sectors in the country, the military officials still seek for an increase of 20% per year in the defence spending. With the recent announcement of upcoming budget likely allocating around Rs 860 billion to defence, the Ministry of Defence had already termed it insufficient with the reason that it is insufficient allowing for the rising discontent and potential security threats due to the changing geo-political situation in the region.

Sources have reported that GHQ is also demanding that 100% of Coalition Support Fund (CSF) that Pakistan is receiving from United States as part of the funding for operations against terrorism. So far, the GHQ gets 60 per cent while the rest goes to the Federal government.

All in all it can be concluded that as long as the regional situation stays tensed, war on terror continues and the historical hostility persists with our neighbouring India, our defence expenditure will continue to amount for a major chuck of total budget.