Government has decided to increase defense budget for fiscal year of 2010-11 up to Rs. 100 billion.
Rs. 342 billion was allocated for defense in fiscal year of 2009-10 and Rs. 442 billion would be allocated for defense in upcoming budget for financial year of 2010-11, a Private TV Channel reported.
The decision to increase defense budget was taken after increasing expenditure of country’s armed forces in ongoing war against terrorism and extremism as well as increase in salaries of Personnel and officers of Pakistan army in January.
It is expected that the salaries of Personnel and officers of armed forces would be increased from 1st July. According to the budget documents, Rs. 70 billion is needed under the head of salaries of armed forces and Rs. 29 billion under the head of allowance and other incentives.
Additional funds are also needed to fulfill requirement of armed forces under the head of equipments. The decision to increase defense budget up to Rs. 100 billion was taken in the meeting recently held in Finance ministry and defense ministry.
The Government has already made it clear that it would fulfill the needs of country’s armed forces at all cost. The Government has also decided to increase budget of Public sector by Rs. 50 billion but it would depend upon the commitments made by US and friends of Pakistan.
If United States of America and friends of Pakistan releases aid by June 30 then increase would be made in the Public sector budget.