Rs100b hike in defence budget decided

ISLAMABAD (Online) - The government has decided to increase the defence budget for fiscal year of 2010-11 by to Rs 100 billion. The defence allocation for the last fiscal year was Rs 342 billion, which would now stood at Rs 442 billion, a private TV Channel reported. The decision to increase the defence budget was taken in recent joint meeting of Finance and Defence ministries after hike in expenditure of armed forces in ongoing war against terrorism and extremism as well as increase in salaries of personnel and officers of Pak Army in January, expected to be increased from 1st of July. According to the budget documents, an amount of Rs 70 billion is needed under the head of salaries of armed forces with further Rs 29 billion for the allowances and other incentives. Additional funds are also needed to fulfil requirement of armed forces under the head of equipments. The government has already made it clear that it would fulfil the needs of countrys armed forces at all cost, which has also decided to increase budget of Public Sector by Rs 50 billion but it would depend upon the commitments made by the US and Friends of Democratic Pakistan (FoDP) to release the promised aid by June 30.

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