ISLAMABAD: The government on Wednesday proposed an allocation of Rs2.12 trillion for the armed forces in the upcoming fiscal year (FY 2024-25), marking a substantial increase of 17.6pc compared to last year’s budget reflecting the country’s priorities in a region marked by geopolitical tensions.
The allocation for the armed forces in the next fiscal year is set at 1.7pc of GDP, maintaining the same proportion of the national pie as last year. Meanwhile, the proposed expenditure constitutes 12.33pc of the projected current expenses.
This significant boost in defence spending is the second-largest in six years, just shy of the 18pc hike granted by the PML-N government in the final year of its 2013-18 tenure. This also marks the second consecutive year of elevated funding for the armed forces, following last year’s 15pc increase, signalling a shift away from the traditional 11pc annual raise — a trend witnessed over the past decade.
The budget figures presented to the NA by the government reveal that the armed forces slightly exceeded their last year’s allocation of Rs1.8tr, ultimately spending Rs1.83tr.
The allocated amount, however, presents an incomplete picture of the country’s actual military expenditure. Notably, a significant sum of Rs662 billion, designated for retired military personnel, which equals to about 31pc of allocation for the armed forces, will not be drawn from the defence budget, rather government’s current expenditure.
Major military acquisitions and funding for nuclear weapons and missile programmes are believed to be financed through separate channels, hidden under a classified budget line. The true extent of military spending, therefore, remains obscured.
The share of the three services and inter-services organisations has remained fairly consistent since 2019, with Army getting 47.5pc, Pakistan Air Force 21.3pc, Navy 10.8pc and inter-services organisations 20.3pc of the allocation.
Notably, this year’s budget exhibited a unique pattern, where all branches of the military — the Army, PAF, PN and inter-services organisations — will receive an equal percentage increase of 22.3pc in their respective allocations, a rare display of parity in funding distribution.