Defence budget hiked by 20.2% to Rs2,550b
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The government has announced major allocations for defence, civil administration, pensions, subsidies, and grants in its budget for the financial year 2025-26.
The defence budget has been hiked by over 20% as Rs2,550 billion has been set aside in the budget 2025-26, which will be spent on the operations, equipment, and other needs of the Pakistan Army, Pakistan Air Force, Pakistan Navy, and related defence institutions.
For civil administration expenses, Rs971 billion has been earmarked, which includes operational expenses of federal ministries, departments, and the civil bureaucracy.
Read more: Finance minister unveils anti-digital, pro-realty sector budget
An amount of Rs1,055 billion has been allocated for pension payments, which will be made to retired government employees. As per the budget document, this amount is increasing every year, adding to the government's financial woes.
As for subsidies, the government has earmarked Rs1,186 billion for various sectors, particularly the power sector. These subsidies will be provided to low-income consumers, agricultural tube-wells, and the industrial sector to facilitate them.
For grants, Rs1,928 billion has been allocated, which will be distributed among the Benazir Income Support Program (BISP), Azad Jammu and Kashmir, Gilgit-Baltistan, and the merged districts of Khyber-Pakhtunkhwa.
The aim is to promote development, welfare projects, and financial stability in these regions.
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