The federal government proposed a Rs2,122 billion defence budget for the fiscal year 2024-25, marking a 17.62% increase over the estimated allocations of Rs1,804 billion for the fiscal year 2023-24.
The budget documents indicate a Rs318 billion rise in the defence budget compared to the previous year, but a reduction in its percentage share of the total outlay.
The proposed defence budget now represents 11.24% of the total federal budget outlay of Rs18.877 trillion, down from 12.47% of the total outlay of Rs14.46 trillion for the previous year.Â
A significant portion of the defence budget, Rs815 billion, is allocated for employee-related expenses, including salaries and allowances. This is up from Rs715 billion in the fiscal year ending June 30, 2024, reflecting the finance minister’s announcement of a 22 to 25% salary increase for government employees.Â
Other budget allocations include Rs548 billion for physical assets, Rs513.3 billion for operational expenses, and Rs244 billion for civil works.
The federal government has proposed allocations of Rs1,009 billion for the Pakistan Army, Rs230.3 billion for the Pakistan Navy, Rs451 billion for the Pakistan Air Force, and Rs431.4 billion for other establishments.
In comparison, India’s defence budget announced in February this year stands at $75 billion, nearly 10 times higher than Pakistan’s proposed defence budget of $7.59 billion.
