The budget revealed that the cost of repaying the debt has increased to 29.1% of the total budget, making it the single greatest expense and accounting for 45.4% of the current expenditure.
On Friday, Pakistan’s Finance Minister Miftah Ismail presented a Rs 9,502 billion annual budget to Parliament for the fiscal year 2022-2023. Within this budget, Pakistan will allot Rs 1,523 billion for defence, which is an increase of almost 11 percent compared to the previous year’s allocation.
According to the estimations, the costs associated with the military made up the second largest portion of the annual expenditures, behind only the interest and principal payments on the national debt.
The overall current spending for the following year is projected to be 8,694 billion rupees, which is a 15.5% increase over the sum that was budgeted for the previous year.
The Budget Documents
For this year, the government has allocated Rs 1,523 billion to national security, an increase above last year’s Rs 1,370 billion, which was later raised to Rs 1,450 billion at the request of the Ministry of Defence.
The Pakistani Army, which has dominated the country for more than half of its almost 75-year history, has long exercised significant influence over national security and foreign policy decisions in Pakistan.
The Defence Budget for 2022-23
The budget allotment for defence in this year is Rs 1,523 billion, which is 11.16 percent more than the budget allotment in the previous year, which was Rs 1,370 billion.
Ismail, the Minister of Finance, made the announcement that the government plans to aim for a growth rate of 5% for the following fiscal year, which compares favourably to the 5.9% that was accomplished versus the 4.8% that was the original target for the previous year.
The difficulty that the country is currently facing was also brought up by the minister Shehbaz Sharif.
“The difficulty with our economy is that growth is between 3% and 4%, but when it gets up to 5% or 6%, our current account deficit runs out of control because we give preference to the elite, which raises our imports. This is a problem because it causes our imports to rise.
In order to encourage those with lower incomes to contribute more to the home economy, we need to adopt new ways of thinking.” The minister had this to say.