Rs421b allocated for pensioners

ISLAMABAD: The government has allocated Rs421 billion for the pensions of federal government employees for fiscal year 2019-20.

The budget allocation for the pension of retired government employees (civilian and armed forces) has been increased from Rs342 billion to Rs421 billion for the budget year 2019-20. During last five fiscal years, the federal government spent Rs1563.86 billion for the pensions of its retired employees.

After the revised allocation for retired employees pensions during the previous fiscal year 2017-18 the federal government allocated Rs333.35 billion for pension of federal government employees. According to budget document, during the fiscal year 2016-17, the federal government allocated Rs245 billion for pensions of federal government employees. Similarly, the government spent Rs222.51 billion on the pensions in the fiscal year 2015-16.

The federal government did not increase the pension amount significantly in the fiscal year 2014-15 as only Rs5 billion was increased that year and reached Rs185.16 billion. The budget documents further reveal that in the fiscal year 2013-14, the federal government increased the pension amount by almost 5 percent than the previous year.

The government allocated Rs180.2 billion compared to Rs172.63 billion in the previous year. In the year 2012-13, the pensions’ amount was increased from Rs140.42 billion to Rs172 billion.