CM Sindh Syed Murad Ali Shah presents provincial budget of Rs1.713 trillion for financial year 2022-23
KARACHI, June 14 (SABAH): Sindh Chief Minister Syed Murad Ali Shah on Tuesday presented the provincial ‘pro-poor ‘ deficit budget with a total outlay of Rs1.713 trillion for fiscal year 2022-23.
According to the chief minister, the total receipts of the provincial government for the next financial year would amount to Rs1,679,734.8 against the expenditures of Rs1,713,583.1, which is a deficit of Rs33.848 billion.
Syed Murad Ali Shah, in his budget speech, told the house that the overall revenue receipts would come to Rs1,679,734.8 billion, including Rs1.055billion federal transfers, Rs374.5 billion provincial receipts (Rs167.5 billion provincial tax receipts excluding GST on services, Rs180 billion provincial sales tax on services and Rs27,000 million provincial non-tax receipts), Rs51,132.8 million current capital receipts, Rs105,567.5 million other transfers such as foreign project assistance, federal grants and foreign grants and Rs20,000 million carry over cash balance and public accounts of the province.
He added that the provincial tax collecting organisations would achieve their collection targets such as Sindh Revenue Board’s (SRB) Rs180 billion, Excise & Taxation’s Rs1.20 billion and Board of Revenue’s Rs30 billion.
The chief minister said that the current revenue expenditures for the next financial year would be Rs1,199,445.4 million, Current capital expenditures Rs54.48 billion, development portfolio Rs459.65 billion, including Rs332.165 billion provincial ADP, Rs30 billion district ADP, and Rs91.467 billion Foreign Assistance Project (FAP) and Rs6.02 billion other federal grants.
According to the CM, the provincial government, during the 11 months (July to May) of the outgoing financial year, has received Rs716 billion against a share of Rs732 billion which shows a shortfall of Rs16 billion.
Syed Murad Ali Shah added that his government, during the said period, received Rs45 billion in straight transfers and in OZT by receiving Rs18.9 billion against a share of Rs19.7 billion.
The provincial government has allocated Rs332.165 billion for Annual Development Program (ADP) 2022-23 while it was Rs222.5 billion during the outgoing year. The district ADP size has been kept at Rs30 billion as was done during the current financial year.
The chief minister disclosed that 4,158 schemes, including 2,506 ongoing and 1,652 new schemes have been given an allocation of Rs332.165 billion. He added that the 2,506 ongoing schemes have been given 76 per cent of funds or Rs253.146 billion and the 1,652 new schemes have been allocated 24 per cent of funds or Rs79.019 billion.
The CM also announced that 1,510 schemes would be completed in FY 2022-23.
During the budget session, the provincial chief executive announced Rs26.850 billion for a ‘pro-poor, social protection and economic sustainability package’.
The chief minister announced that Adhoc Relief Allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of the federal government were being merged and the Revised Basic Pay Scale 2022 for Civil Servants of Sindh government was being introduced on the pattern of the federal government.
He also announced Adhoc Relief Allowance at the rate of 15 percent of basic pay scales to government servants from July 1, 2022.
“Disparity Allowance at the rate of 33 percent of basic pay will be paid to civil servants in BPS-1 to 16 and at the rate of 30 percent to civil servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished from July, 2022,” he said.
He further announced that all provinces have not presented their budgets yet and “if they decide to increase the salaries of their employees more than the employees of the Sindh government, we would take decisions accordingly though the salaries and pensions of our employees are better than the employees of other provinces”.
The chief minister said pensioners of the Sindh government were already getting a 22.5 per cent increase in net pension when compared to the pensioners of the federal government till February 2022.
Therefore, he said an increase at the rate of 5 per cent of net pension would be paid to the pensioners of the Sindh government from July 1, 2022.
The chief minister also announced to upgrade of the police constable post from grade BS-5 to grade BS-7.
Murad also said that services provided by cable TV operators were levied at a reduced rate of 10 per cent, and the existing relief was proposed to be extended for a further period of two years, now ending on June 30, 2024.
The existing exemption on health insurance services will continue for a period of one year till June 30, 2023. GIZ, a German development agency, facilitating development projects in Sindh, has also been granted conditional exemption on sales tax on services as indirect relief to the public.
The chief minister said that his government has kept the education sector at its top priority by allocating Rs326.80 billion, which forms more than 25 per cent of the total budget outlay. He added that the health sector has also been given top priority with budgetary allocation at Rs230.30 billion, which forms more than 19 per cent of the total budget outlay.
The Sindh government will either establish a full-fledged university or a campus of a recognised public university in at least seven districts, one each in Korangi, Karachi West, Keamari, Malir, Tando M. Khan, Tando Allah Yar, and Sujawal.
Korangi will have a university of technology, skill, and vocational/industrial development, while Karachi West and Keamari will have sub-campuses of this university. Malir will have a sub-campus of NED University. Likewise, Tando M. Khan and Tando Allah Yar will have sub-campuses of IBA Karachi or Sukkur IBA and Sujawal will have a sub-campus of Mehran University.
The total outlay of the health budget for the new fiscal year is earmarked at Rs206.98 billion, covering primary, secondary and tertiary healthcare level services, preventive interventions as well as other communicable and non-communicable diseases.
This year, the health sector budget is 14% higher in comparison to Rs181.22 billion during FY 2021-22.
For the next financial year, the total allocation for the Home Department, including Sindh Police and Jails, has been enhanced to Rs124.873 billion from Rs119.98 billion during the current financial year.
For the next financial year 2022-23, the budget for irrigation has been enhanced from Rs21.231 billion to Rs24.091 billion. Allocation for the Agriculture & Irrigation Department in ADP 2022-23 is Rs36.2 billion.
The Water & Sewerage sector has been given Rs224.675 billion in the financial year 2022-23. The two major schemes which will be executed in Karachi are:
· Re-settlement of affectees of Gujjar, Mehmoodabad and Orangi Nallahs, for Rs9.423 billion.
· Greater Karachi Bulk Water Scheme K-IV Augmentation Works for Rs511.724 billion.
The Sindh government has increased its budget from Rs8.00 billion to Rs12.00 billion for the next financial year 2022-23. The government intends to further expand the operations of the Sindh Solid Waste Management Board to other districts in the next financial year which include Hyderabad, Qasimabad, Kotri, Sukkur City and Rohri.
The Sindh cabinet earlier today approved a ‘tax-free’ provincial budget of Rs1.71 trillion. The cabinet meeting was chaired by Sindh’s Chief Minister Syed Murad Ali Shah and was attended by provincial ministers, advisors, special assistants, chief secretaries, principal secretaries and other concerned officers.
Amid ruckus in the assembly, Sindh Chief Minister Murad Ali Shah presented the budget. The chief minister said this past year witnessed “extraordinary changes” both nationally and internationally, with its impact ultimately on the common man.
“Despite that, the Government of Sindh vows to leave no stone unturned to ensure economic and political stability in the province, contributing its shares in the common national effort, which is in line with the vision of the PPP,” CM Shah said.
The chief minister prayed that Pakistan and its democracy be protected from the dangers and challenges that it is facing.
“May democratic forces always rise and shine in this country. May Almighty Allah bestow us with courage and ability to serve the people of our motherland.”
Earlier, during the meeting attended by all provincial ministers, advisers, special assistants, chief secretaries, principal secretaries and other officers concerned, the CM Sindh approved the proposals of the Rs1.71 trillion “tax-free” budget.
Commenting on the proposals, CM Sindh had termed the document as a “budget for the poor.”
“In this budget for the next fiscal year, steps have been taken for social security and economic stability,” he said, adding that this budget has been prepared after consultations with all relevant stakeholders and cabinet holders.
Murad Ali Shah presented the budget in the provincial assembly as he holds the portfolio of Sindh’s finance minister as well.