Govt increases defense budget by Rs 281 billion for FY2023-24
ISLAMABAD: The federal government has increased the defense budget by Rs 281 billion in the new budget for the year 2023-24.
The total defense budget proposed in the new budget is Rs 1804 billion, up by Rs 281 billion when compared with the current fiscal year budget.
In the US dollar, the increase is almost equal to one billion dollars if we keep in view the interbank exchange rate.
In Federal Budget 2022-23, the allocation for Defence amounted to Rs 1.52 trillion. Record high inflation and massive rupee depreciation influenced the government to raise the defense budget.
The federal cabinet approved the increase in the defense budget on Friday while finance minister Ishaq Dar announced the budget in the National Assembly.
A massive increase in salaries gives relief to govt employees
On Friday, the federal cabinet approved a 35 percent pay raise for its employees from grades 1-16 while 30 raise was announced for grade 17-22 officers. Additionally, the government increased pension by 17.5 percent for the fiscal year 2023-24.
Ishaq Dar presents new budget in parliament
Finance Minister Dar announced the budget in the National Assembly soon after the cabinet approved it. The total outlay of the budget is 14.46 trillion rupees for 2023-24.
The coalition government did not impose new taxes and tried its best to give relief to people, including government employees and pensioners. The provincial governments are also expected to announce a matching pay and pension raise for their employees in the 2023-24 budgets, starting from July 1, 2023.
In the new budget, the government has projected a fiscal deficit of around 7 percent of the GDP. The development spending is expected around Rs1.15 trillion while the economic growth target is 3.5 percent for 2023-24.
Prime Minister Shehbaz Sharif chaired the meeting of the federal cabinet. Finance Minister Senator Muhammad Ishaq Dar briefed the cabinet about the salient features of the new budget.
Prime Minister’s Address to the cabinet members
While addressing the cabinet members, PM Shehbaz said the government has presented the best budget in the prevailing circumstances.
Prime Minister said that the previous PTI government violated the IMF program and ruined the national economy. He said that the government was giving priority to resolving the problems of the people.
PM Shehbaz said the government has accepted the IMF conditions and sitting with IMF people for the resumption of the loans program. He was optimistic about signing a staff-level agreement with the IMF within this month.
Premier said that China, Saudi Arabia, and the United Arab Emirates have supported Pakistan financially in a very critical time.
The government announced a major decision and ended duties and taxes on the import of solar panels and related items to promote clean energy.
Earlier, the cabinet approved Rs 1150 billion Federal Development Program for the fiscal year 2023-24.
After the cabinet’s approval, finance minister Senator Muhammad Ishaq Dar unveiled the new budget in the National Assembly on Friday afternoon.
