Tag Archives: spending

Pakistan – Defence budget hiked by 15 per cent

ISLAMABAD: Pakistan has increased its defence spending by 15% for the coming fiscal year, as the military remains engaged in fighting a deadly Taliban insurgency in the strife-torn tribal regions.

The defence budget has been jacked up to Rs627.2 billion for the financial year beginning July 1, compared to Rs545.3 billion allocated in the outgoing fiscal year, showing an increase of Rs82 billion.

However, against the original allocation of Rs545.3 billion, the military overspent Rs25 billion, raising the total expenditure to Rs570 billion in 2012-13.

According to the budget document, the lion’s share went to the army which got Rs301.54 billion, followed by the air force with Rs131.18 billion and the navy with Rs62.80 billion.

Of the total Rs627.2 billion, Rs271.2 billion have been allocated for employees-related expenses, Rs162.2 billion for operating expenses and Rs131.3 billion for physical assets.

However, the figures do not include over Rs132.7 billion allocated for pensions of the retired military personnel that would be paid from the civilian budget and a separate allocation for the security-related expenses, a move which critics say seeks to conceal the actual defence spending.

In addition to this, the military will also be given Rs150 billion under the contingent liability, Rs70 billion under the Coalition Support Fund (CSF) and Rs35 billion has been allocated for the military’s services to the UN peacekeeping missions in the coming fiscal year. This means a whopping Rs1,014 billion have been allocated for the military, which is about 28.2% of the country’s total budget.

The defence budget – which has never been properly debated in Parliament – has remained a sensitive and controversial subject in Pakistan and there have been calls for greater scrutiny of the spending.

Read more » The Express Tribune
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Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

PAKISTAN’S national poet, Muhammad Iqbal, believed the subcontinent’s Muslims needed to unite if they were to prosper. Without a strong sense of nationhood, he wrote, “mountains become straw and are blown away in the wind”.

Poetry and taxes do not often mix. But those melancholy lines grace an analysis of Pakistan’s fiscal plight by Ehtisham Ahmad of the London School of Economics. The country’s tax revenues have collapsed. Its debt is almost certainly unsustainable without outside help. And yet Pakistan does not pull together. “Textile lobbies, the urban gentry, traders and agriculturists, all point to the other and say: Tax that group first, but do not tax me,” Mr Ahmad writes.

The tax authorities can identify a mere 768,000 individuals who paid income tax last year. Even fewer—just 270,000—have paid something in each of the past three years. That is one reason why Pakistan’s tax revenues amounted to only 9.1% of GDP in the latest fiscal year, one of the lowest ratios in the world (see chart). These are exceedingly narrow shoulders on which to rest a nuclear-armed state of 180m people. The culture of cheating starts at the top. Most members of parliament, many of them conspicuously affluent, do not file tax returns.

In the months before an election, due by May, the government of President Asif Zardari of the Pakistan Peoples Party (PPP) is proposing a controversial remedy: an amnesty for evaders. They will be invited to wipe the slate clean with a one-off payment of only 40,000 rupees ($400). The government says it is a quick way to resuscitate the public finances and expand the tax net. Its critics see the amnesty as a boon for politically connected crooks.

Continue reading Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

US House panel OKs defense bill, limits Pakistan aid

WASHINGTON: The House Appropriations Committee has approved a defense spending bill that imposes limits on US aid to Pakistan and creates a special bipartisan group to review the US role in Afghanistan.

The panel gave the go-ahead to the bill on a voice vote Tuesday. The legislation would provide $530 billion for the Defense Department and $119 billion for the wars in Iraq and Afghanistan. The bill is $9 billion less than President Barack Obama requested.

The bill would withhold 75 per cent of the $1.1 billion in US aid to Pakistan until the administration reports to Congress on how it would spend the money. Reflecting the frustration with Pakistan’s effort in battling terrorism, the committee adopted an amendment that gives Congress even more power to review the spending.

Courtesy: DAWN.COM

Army’s one-day spending equivalent to one-year education ministry budget – The News

by Umar Cheema

ISLAMABAD: Pakistan spends Rs1.35 billion per day over the three armed forces just under the head of salaries and operating expenses only, Rs8.60 million daily on the president and prime minister, Rs7.8 million per day on the Senate and National Assembly but a paltry amount of three lakh rupees per day to take care of human rights, show the budget documents.

It further discloses that the Army’s one-day spending is equivalent to the running year’s total allocation for education ministry, and the air-force’s per day expenditures far exceed what was allocated to the health ministry for running the financial year ending this month.

Continue reading Army’s one-day spending equivalent to one-year education ministry budget – The News

Pakistan – Borrow until broke: how to make a nation fail

– Dr Manzur Ejaz

The lack of governance, irresponsible spending by the governing elite and non-collection of income taxes are the biggest hurdles. Power shortages, corruption and nepotism are major hurdles for the private sector to increase production. The opportunism of different political parties does not allow any government to devise a rational policy …

Read more : Wichaar

Pakistan Budget : DEFENCE SPENDING

Pakistan will increase its defense spending by 17 per cent in the 2010-11 fiscal year to 442.2 billion rupees ($5.17 billion), up from 378.13 billion in 2009/10 and spent only 2% of GDP on education and who cares for Health in Pakistan! that’s why cuts in health sector funds in this budget. Everybody just want every thing free in Pakistan!!?? Nobody is willing to give tax. Even doctors, surgeons and private hospitals who earned billions of rupees from health sector are not willing to give any tax.

To read more on Budget, CLICK HERE to visit BBC urdu or click the following link:

To read BAAT SE BAAT on budget at BBC urdu website, click here or click the following link:

http://www.bbc.co.uk/urdu/pakistan/2010/06/100606_baat_se_baat.shtml

http://www.bbc.co.uk/urdu/pakistan/2010/06/100605_budget_2010_11.shtml