Pak defence budget set to increase by at least Rs130 billion

Pakistan's defence budget is set to increase by at least Rs 130 billion due to ongoing military operations against militants and increased salaries for military personnel, a media report said here today.

By June this year, Pakistan's defence expenditure might rise to Rs205 billion because of the military operations and increased salaries for the armed forces.
   
However, the country could project an increase of Rs 130 billion in the defence expenditure during talks with the International Monetary Fund.

This could pave the way for achieving broader consensus with the IMF for increasing the fiscal deficit target up to 5.1% of GDP, from the earlier envisaged target of 4.9%, The News daily reported.

A senior government official, who took part in the recently concluded talks between Pakistan and the IMF in Dubai, said the fiscal target was allowed to grow due to increased expenditure on security and rising subsidies during the current fiscal year.

The Pakistan government last month allocated an additional Rs35 billion for the 2009-10 defence budget due to expenses on anti-militancy operations and the need to acquire modern equipment to counter a perceived threat from India.

Following the additional allocation, Pakistan's defence budget increased to about Rs378 billion.