KARACHI: The Sindh government on Saturday presented a Rs2.25 trillion budget for the next fiscal year, proposing a massive hike in salaries in line with the federal budget and a significantly higher development expense of Rs700 billion, which accounts for 31 per cent of the outlay.

Chief Minister Syed Murad Ali Shah made his budget speech without facing a ruckus, thanks to the absence of PTI lawmakers and the calm with which the rest of the opposition — including Muttahida Qaumi Move­ment-Pakistan, Grand Democratic Alliance, Tehreek-i-Labbaik Pakistan and Muttahida Majlis-i-Amal — sit through the session.

The deficit budget mainly centres around the rehabilitation of flood-affected people and social protection for the poor.

The total revenue receipts of the provincial government have been estimated at Rs2.21tr, or 27pc higher than what was proposed for the outgoing year. The expense is projected at Rs2.25tr, meaning a deficit of Rs37.8bn.

Mr Shah, who was presenting his 12th budget as finance minister and seventh as chief minister — announced that the provincial government had raised the minimum wage from Rs25,000 to Rs35,500, increased salaries by up to 35pc and pensions by 17.5pc for the 2023-24 fiscal year.

The 35pc pay rise applies to Sindh government employees of Grades 1 to 16; those above will get a raise of 30pc.

Revenue receipts

The total receipts are divided into five categories: current revenue receipts of Rs1.82tr, current capital receipts of Rs36.1bn, other receipts of Rs295.53bn, carryover cash balance of Rs45bn, and net public accounts of Rs10bn (including Rs5.585tr receipts and Rs5.575tr disbursements).

The current revenue receipts include Rs1.35tr of federal transfers in the form of revenue assignment (Rs1.23tr), straight transfers (Rs64.4bn), and grants of Rs33.7bn to offset losses due to abolished octroi and zila tax.

The current revenue receipts also include Rs202.9bn provincial tax receipts, Rs235bn provincial sales tax on services, and Rs32bn provincial non-tax receipts.

As for the current capital receipts, Rs6.1bn goes to local repayments and loans and Rs30bn to bank borrowing.

The “Other Receipts” head eyes foreign project assistance (FPA) of Rs266.7bn, other federal grants fo Rs22.9bn, and foreign grants of Rs5.9bn.

Expenditures

In contrast, the estimated expenditure of Rs2.247tr includes a current revenue expenditure of Rs1.41tr, current capital expenditure of Rs136.3bn and development expenditure of Rs700.1bn.

The development expenditure includes the provincial annual development plan (ADP) of Rs380.5bn, foreign project assistance of Rs266.7bn, other federal grants of Rs22.9bn, and district ADP of Rs30bn.

Education

The chief minister said the school education budget had been raised by 13pc to Rs267.6bn, and the health budget by 10pc to Rs.227.8bn.

He said the Sindh government had successfully secured Chinese grants of Rs7.66bn for rehabilitating and rebuilding 646 schools.

Under the Flood Restoration Programme and Sindh Development Through Enhanced Education Programme (DEEP), 112 damaged schools would be restored on resilient and environmentally friendly fabricated structures in five districts at the cost of Rs3.01bn.

Law and order

Mr Shah said the provincial government had allocated Rs143.6bn for the home department, up 15pc over the last year’s allocation.

“By allocating resources effectively, we aim to provide our law enforcement and security agencies with the necessary tools and support to protect our province and maintain law and order,” he said.

He also announced Rs15.5 million each to the prison policy and management boards for strategic improvements and Rs463.4m to make the prison department more technically capable.

Empowering people with disabilities

He said that according to the World Health Organisation, 15pc of the world’s population were people with disabilities, who were found to be socially and economically discriminated against. He announced a provision of Rs6.1bn for the year 2023-24 against the budget of Rs3.4bn in the current financial year.

Wheat subsidy

The chief minister also announced Rs63bn to ensure a consistent supply of subsidised wheat to mills and affordable wheat flour to the public; and a budgetary provision of Rs16.9bn for the Pro-Poor Social Protection and Economic Sustainability Programme.

Transport

For the transport and mass transit system, the provincial government has set aside Rs13.4bn for the next year, almost double the last year’s budgeted amount of Rs6.9bn.

Mr Shah said his government was committed to providing safe and modern transport facilities at an affordable price to all citizens.

“We have provided funds of Rs6.1bn for Sindh Intra-District Peoples Bus service this year,” he said, adding that as an “antidote” to hiking fuel and fare prices, a one-time fare subsidy of Rs247m was provided to the Sindh Intra-District Peoples Bus to be passed on to commuters.

For the second phase of the project, he said an allocation of Rs10bn had been made for including a fleet of 500 diesel hybrid buses.

On Karachi’s Green Line Bus Rapid Transit (BRT) system, he said the project was underway at the cost of Rs2.36bn. The project’s corridor was 3.88 kilometres in length and would carry 50,000 passengers per day.

On the Red Line BRT, he said it would be a “state-of-the-art third generation BRT system” with a development expenditure of Rs78.4bn.

Published in Dawn, June 11th, 2023