New fiscal policy gives away half of proposed budget to defence: report


ISLAMABAD: The new fiscal policy approved by the federal cabinet gives away more than half of the proposed budget of Rs 5.237 trillion for 2018-19, to meet the growing needs of defence as well as debt servicing, reports a local media outlet. 

A Rs1.1 trillion has been approved for regular defence budget and another Rs100 billion for Armed Forces Development Programme (AFDP) – a sum of Rs1.2 trillion that is equal to 23% of the proposed total budget of Rs5.237 trillion.

Another amount of Rs1.607 trillion or 30.7% of the proposed budget has been approved for debt serving.

“The sustained income and revenue streams will benefit the country instead of obtaining loans,” said Prime Minister Shahid Khaqan Abbasi during the meeting.

“The defence and debt serving would consume 53.7% or Rs2.8 trillion out of Rs5.237 trillion,” a cabinet minister told the publication. The Rs5.237 trillion overall size of the budget is 10% or Rs484 billion higher than the previous year’s original budget approved by parliament in June last year.

A Budget Strategy Paper has been approved for fiscal year 2018-19, authorising a record budget deficit of Rs2.029 trillion that will be equal to 5.3% of the GDP. The government will borrow Rs2.029 trillion from domestic and external sources to bridge the budget deficit gap.


  1. This article heading is misleading as false:
    major part of budget is for “debt” or “loans” that this govt has taken… 30.7% of the proposed budget is for debt” … defence budget didnt not get any substantial increase than last year only 10% increase

    So please correct the heading… its the loans and corruption of this govt that has increased debt substantially… no the defence budget

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