Government defends increase in military spending

The government defends increase in military spending for the financial year beginning next month, saying unconquerable defence is a top priority. Defence allocation for fiscal 2007-08 was raised by more than nine percent to Rs 275 billion ($4.58 billion) in a budget presented to the parliament over the last weekend.
The proposed estimate compares with Rs 252 billion in this financial year ending on June 30. "If we are hurt, military will save us," State Finance Minister Omar Ayub Khan told Senate on Friday. "Whatever sacrifice we have to make, every patriotic Pakistani will. It's our collective responsibility not to deviate from it." Junior finance minister was winding up a budget debate that lasted for five days.
Several opposition members have questioned high defence spending and asked the government to explain the reason for it. Pakistan military allocation is more than 17 percent of the total budget outlay that is Rs 1.874 trillion. It is 3.13 percent of the country's gross national product (GDP), a ratio much higher than spending on education and health.
"Impregnable defence is indispensable for a nation which wants to live with honour and dignity," Omar Ayub Khan said in his budget speech to the National Assembly on last Saturday evening.
"Pakistan is a nuclear power. If any one looks at us with bad motive, we will respond with full force." Pakistan increased defence budget after India did the same in February. New Delhi raised military spending by 8 percent to $22 billion for the fiscal started from April 2007. Though Indian defence budget is more than five times higher than that of Pakistan in size, yet its ratio to GDP (2.1 percent) is much lower.
Omar Ayub also rejected an allegation by several opposition members that the figures in budget document were wrong. "Budget figures are accurate according to any standard," he said.
LATIN AMERICAN ECONOMIC MODEL In his speech, Senate opposition leader Raza Rabbani proposed Pakistan should adopt a Latin American economic model for prosperity and progress.
"If Pakistan continues existing economic policies, it will be on a destruction tack," Raza said. "The Latin American model is the best if Pakistan is to live as an independent and honourable country." Several Latin American countries like Argentina and Brazil had decided to adopt an anti-globalisation policy after a balance of payment crisis back in 2001.
They suspended operational relations and refused to follow guidelines from multinational donors like the International Monetary Fund (IMF). Another Latin American country, Venezuela, has recently announced to nationalise oil sector and even withdrew the basic membership of the 184-member strong IMF.
Raza said the policy of downsizing was not appropriate for Pakistan under the given situation. Both opposition and government members have decided to seek more time for Senate to debate budget in coming years. Senators are bound to finish speeches and forward recommendations within seven days under the existing rules.
Rabbani alleged the government had unconstitutionally amended several substantive laws through the Money Bill that included the federal budget. Pakistan constitution says no law could be amended through a Money Bill (annual financial report in budget's case) because Senate has no right to pass such legislation.