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This Article is From Jun 02, 2012

Pakistan hikes defence allocation by 10 per cent

Islamabad: Pakistan today increased the defence allocation in its fiscal 2012-13 budget to Rs 545 billion (about USD 5.82 billion), marking an increase of 10 per cent over the outlay for the current fiscal.

The allocation for the defence services amounted to 18.4 per cent of the federal budget of Rs 2,960 billion for fiscal 2012-13.

Further details, including allocations for the three services and weapons acquisition programmes, were not immediately available.

Official budget documents presented in parliament said a sum of Rs 545 billion had been allocated for the defence services for 2012-13, compared with Rs 495 billion provided in the fiscal year ending on June 30.

The budget documents further stated that the actual expenditure on defence during fiscal 2011-12 was estimated Rs 509.32 billion (about USD 5.45 billion), or Rs 14.32 billion more than the allocation of Rs 495 billion.

The documents further showed that the government had allocated Rs 3.250 billion for projects of the Defence Division under the Public Sector Development Programme for 2012-13.

Out of this allocation, Rs 717 million will be spent on projects of the Space and Upper Atmosphere Research Commission.

Rs 1.347 billion were earmarked for the National Electronics Complex of Pakistan while Rs 600 million was provided for the New Gwadar International Airport.

The development projects of SUPARCO include development of a compact antenna test range, development of various laboratories and logistic support facilities for the National Satellite Development Program, Altitude and Orbital Control System Centre, development of a satellite assembly integration and test facility, remote sensing data transmission facility and satellite environmental validation and testing facility.

The Pakistan government has traditionally made defence allocations with the objective of maintaining conventional parity with India.

However, a crippling financial crunch has forced the government to balance military spending with expenditure on development and welfare programmes.

Expenses on the war on terrorism and cuts in defence aid by the US too have affected Pakistan's defence budget.

However, experts have said the government often allocates funds for the military's special programmes and the nuclear weapons programme that are not reflected as part of the outlay for defence.

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