Defence budget up by 11.9% for year 2020-21.

ISLAMABAD: The federal government has proposed an 11.9 per cent increase in the defence budget for the fiscal year 2020-21.

The budget document shows that the defence outlay for 2020-21 would be Rs1,289 billion as compared to Rs1,152 billion earmarked for the ongoing fiscal year. The increase, however, is 5% if compared with the revised spending of Rs1,227 billion in 2019-20.

The figure of Rs1,289 billion does not include Rs369 billion allocated for pensions of retired military personnel and Rs324 billion for the armed forces development programme. According to the budget document 2020-21, of Rs 1,289 billion, Rs 475 billion has been allocated for employees-related expenses, Rs 301 billion for operating expenses, Rs 357 billion for local purchases and import of arms and ammunition and Rs 155 billion for civil works.

Meanwhile, the federal government has allocated Rs 1579.140 million for the two ongoing schemes of Defence Production Division under the Public Sector Development Programme (PSDP) 2020-21.

According to the latest data of PSDP 2020-21 released by Ministry of Planning, Development and Reform on Friday, the government has earmarked Rs 421.339 million for Installation of Ship Lift and Transfer...