Pak cuts Rs 65 billion from proposed allocation for war on terror

Islamabad, May 25(ANI): The Pakistan Government has reportedly slashed 65 billion rupees from the proposed grant for the war on terror for the fiscal year 2010-11 due to financial constraints.

According to reports, the tight fiscal need to bring the budget deficit to a level agreed with the International Monetary Fund (IMF) has left the government with no option, but to cut the expenditure on the war on terror.

In the Budget Strategy Paper-1 (BSP-1), the government had planned to set the grant for the war to Rs 185 billion in 2010-11, but in accordance with the BSP-2 finalised by the Ministry of Finance, the allocation for the war will now be reduced to Rs 120 billion, The Daily Times reports.

Meanwhile, the Public Sector Development Programme (PSDP) approved for the ongoing fiscal year has been reduced from Rs. 406 billion to Rs. 235 billion.

Pakistan's actual defence budget was fixed at Rs 343 billion for the ongoing fiscal year, but an additional expenditure of Rs. 60 billion has been estimated for the end of this fiscal year. (ANI)