Charter of the Economy increase in pension payments from 0.4 percent to 1 percent of the GDP. The mushrooming in pension expenditure has now become a matter of concern. Table 11.2: Trend in Components of Federal Current Expenditure 2004-05 2009-10 2014-15 2018-19 CURRENT EXPENDITURE 719 1805 3070 4804 (18.4)*(10.6)(9.0) Debt Servicing 210 642 1304 2090 (22.3)(14.1)(9.4) Pensions 32 64 185 393 (13.9)(21.2)(15.1) Grants 125 332 321 469 (19.5)(-0.6)(7.6) Subsidies 37 251 328 319 (38.2)(5.4)(-0.5) Defense Services 212 375 697 1146 (11.4)(12.4)(9.9) Running of Civil 103 141 235 387 Government(6.3)(10.2)(10.0) (as% of GDP) CURRENT EXPENDITURE 10.0 12.1 11.2 12.5 Debt Servicing 2.9 4.3 4.8 5.5 Defense Services 3.0 2.5 2.5 3.0 Grants plus Subsidies 2.3 3.9 2.4 2.1 Running of Civil Government 1.4 1.0 0.0 1.0 Pensions 0.4 0.4 0.7 1.0 *Annual compound growth rate|** including emergency provision of Rs 95 billion Source: MOF, Fiscal Operations (Rs in Billion) 2020-21 (R.E) 6561** (15.6) 2851 (15.5) 470 (8.9) 932 (34.3) 430 (14.9) 1295 (6.1) 488 (11.6) 13.7 6.0 2.7 2.8 1.0 1.0 There is need also to highlight the sharp drop in Federal development spending from the peak of 2.9 percent of the GDP in 2009-10 to a low of 1.7 percent of the GDP in 2018­19. Clearly, debt servicing and other current expenditure are‘crowding out’ development spending. The fall in development expenditure implies, first, that the potential GDP growth rate has been reduced. Also, with the large throw-forward of on-going projects this has implied delays in implementation and big cost overruns. 116