News
Tuesday, May 25, 2010
Proposed allocation for war on terror slashed
* Financial constraints force govt to decrease grant from Rs 185 billion to Rs 120 billion for 2010-11
By Sajid Chaudhry
ISLAMABAD: The federal government has slashed the proposed grant for the war on terror from Rs 185 billion to Rs 120 billion for next fiscal year 2010-11 due to financial constraints, official sources told Daily Times on Monday.
The tight fiscal space left with the government to bring the budget deficit to a level agreed with the International Monetary Fund has left the government with no option but to cut the expenditure on the war on terror during 2010-11, the sources added.
The grant was set at Rs 125 billion in the budget for the ongoing fiscal year 2009-10, however, due to increased threat of militancy and suicide attacks, the government had to raise the grant to Rs 154 billion.
Earlier, the government had planned to set the grant for the war to Rs 185 billion in 2010-11.
In the Budget Strategy Paper-1 (BSP-1), the government had projected an increase in the grant to Rs 185 billion, however, in accordance with the BSP-2 finalised by the Ministry of Finance, the allocation for the war will now be reduced to Rs 120 billion.
Pakistan is not only engaged in the war on terror on the western border, but also facing a threat within the country.
The federal, as well as provincial governments have spent over and above the approved budget on measures to curb the militancy and threat of terrorism.
Friends of Democratic Pakistan, a forum of developed countries as well as various aid agencies and international lenders, has yet to come up to the expectations of the government. Pledges made at the Tokyo Conference are yet to materialise and amount allocated for the development of the country has already been converted to the defence expenditures.
The Public Sector Development Programme (PSDP) approved for the ongoing fiscal year has been reduced from Rs 406 billion to Rs 235 billion.
Pakistan’s actual defence budget was fixed at Rs 343 billion for the ongoing fiscal year, however, Rs 60 billion additional expenditures have been estimated for the end of this fiscal year.
Courtesy www.dailytimes.com.pk