Sindh Unveils Rs3 Trillion Budget, Prioritizes Development

Sindh Chief Minister Syed Murad Ali Shah presented a Rs. 3.056 trillion budget for the fiscal year 2024-25, with a strong emphasis on development and social protection.

The budget proposes a significant increase in salaries by 22 to 30 percent and allocates Rs. 959 billion, or 31 percent of the total outlay, for development projects. The budget focuses on the rehabilitation of flood-affected people and provides social protection for the poor.

The projected revenue for the province exceeds Rs. 3 trillion, with 62 percent coming from federal transfers and 22 percent from provincial receipts.

Additional funding includes current capital receipts of Rs. 22 billion, foreign project assistance of Rs. 334 billion, other federal grants of Rs. 77 billion, foreign grants of Rs. 6 billion, and a carryover cash balance of Rs. 55 billion. Provincial receipts of Rs. 662 billion include Sales Tax on Services (Rs. 350 billion), other taxes excluding GST (Rs. 269 billion), and non-tax receipts (Rs. 42.9 billion).

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Expenditure is strategically allocated as follows: 63 percent (Rs. 1.9 trillion) towards Current Revenue. 6 percent (Rs. 184 billion) for Current Capital. 31 percent (Rs. 959 billion) for Development Expenditure. Salaries form the largest portion of the budget at 38 percent, followed by grants at 27 percent, which support various programs.

Non-salary expenses account for 21 percent, covering operational costs, transfers, interest payments, and maintenance. Employee pensions and retirement benefits take up the remaining 14 percent of current expenditures.

Current Capital Expenditure includes loan repayments (Rs. 42 billion) and government investment (Rs. 142.5 billion). Development Expenditure includes Provincial ADP excluding Foreign Project Assistance of Rs. 493 billion, Foreign Project Assistance of Rs. 334 billion, Other Federal Grants through PSDP of Rs. 77 billion, and District ADP of Rs. 55 billion.

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Department Allocation: The Sindh provincial budget prioritizes investment in social services. Education receives the largest allocation at Rs. 519 billion, with Rs. 459 billion dedicated to current revenue expenditure. Healthcare follows closely with a total allocation of Rs. 334 billion, with Rs. 302 billion earmarked for current expenses. Local government rounds out the top three with a proposed budget of Rs. 329 billion.

The budget also allocates significant resources to key infrastructure sectors: Rs. 58 billion for agriculture (including Rs. 32 billion for current expenditure), Rs. 77 billion for energy (with Rs. 62 billion for ongoing costs), Rs. 94 billion for irrigation (with Rs. 36 billion for current expenses), Rs. 86 billion for Works & Services, and Rs. 30 billion for Planning & Development. This focus on education, health, local government, and infrastructure development reflects the government’s commitment to long-term growth and well-being for the people of Sindh.

The remaining major departments include Transport (Rs. 56 billion), Works & Services (Rs. 86 billion), SG&CD (Rs. 153 billion), and Home (Rs. 194 billion).

Relief Measures: The Sindh provincial budget, presented by Chief Minister Syed Murad Ali Shah, prioritizes social and economic well-being, particularly in the wake of recent floods.

This comprehensive approach incorporates several key relief measures: – Increased Compensation: Salary increases of 22-30pc and pension hikes of 15pc aim to bolster financial security. -Minimum Wage: Additionally, a minimum wage increases to RS. 37,000 is proposed. – Social Investment: A significant allocation of RS. 34.9 billion targets pro-poor initiatives, directly assisting vulnerable populations. – Subsidy Programs: The budget includes RS. 116 billion in subsidies to ease the financial burden on citizens. – Housing Focus: A dedicated RS. 25 billion will be directed towards housing schemes, promoting access to safe and secure shelter.

This multi-faceted approach reflects the government’s commitment to strengthening the province’s social safety net and fostering economic recovery. New Initiatives: The Sindh provincial budget extends its focus beyond immediate relief measures. Several new initiatives target the long-term development of the province’s economy and social well-being: – Hari Card: A Rs. 8 billion allocations will provide financial support to 12 million farmers, bolstering the agricultural backbone of Sindh. – Inclusive Enclave: Rs. 5 billion allocations to build a Complex to offer education, rehabilitation, training, accommodation, clinical services, recreation and other facilities within a compound at Korangi along the Malir Expressway.

Fiscal Decentralization in Police: For the first time 485 police station-specific budget has been allocated to enable them to meet their fuel, repair & maintenance, and day-to-day expenditures to serve communities. – Solarization Initiative: A Rs. 5 billion allocations over five years will be directed towards distributing solar home systems, and promoting clean energy access. – Hub Canal Project: A dedicated Rs. 5 billion will fund the construction of a new canal to provide water to Karachi. – Mazdoor Card: A Rs. 5 billion welfare program will provide support for labourers (“mazdoors”) in Sindh.

Pro-Poor Initiatives: To ensure social upward mobility, the Budget allocates Rs. 11 billion to agriculture, Rs. 12 billion for social protection, Rs. 3.2 billion for Universities & Board, Rs. 2 billion for Housing & Town Planning, and Rs. 1.5 billion for DEPD. Grants in Aid: The Sindh provincial budget prioritizes investment in human capital through significant grants for education and healthcare. Major grants amount to a total of Rs. 190 billion, with Rs. 35 billion specifically earmarked for universities across Sindh.

These grants will also support major hospitals and medical institutes like SIUT, NICVD, Indus Hospital, SICHN, and Trauma Centers. This targeted funding aims to strengthen educational institutions and improve access to quality healthcare services for the people of Sindh.