CM Murad Ali Shah unveils Rs2.24 trillion Sindh budget

KARACHI: Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of Finance Minister, on Saturday presented the budget for the fiscal year 2023-24 in the Sindh Assembly, ARY News reported.

Addressing the budget session of the Sindh Assembly, CM Murad Ali Shah said that the total outlay of the budget for the province is estimated at Rs2244 billion.

The chief minister began his speech with a couplet from Sindhi poetry while no lawmaker from the opposition PTI was in attendance. Taking a jibe at the opposition party, Sindh chief minister said that some parties had been scattered like “houses of sand.”

Presenting the budget, the chief minister announced a salary hike of 35pc for the Sindh government employees between grades 1 and 16 and 30pc for the employees between grades 17 and 22.

Major allocations

Rs312bn allocated for Education

Rs214bn allocated for Health

Rs143bn allocated for Law and Order

Rs25.70bn allocated for Irrigation

Rs1.24bn allocated for IT sector

Rs23.47bn allocated for Works and Services

Rs13.4bn allocated for Transport

Rs10bn allocated for Livestock and Fisheries

Rs5.69bn allocated for Social Welfare and Protection

Rs88bn allocated for Local Councils

‘Relief measures’

Increase in salary

In a relief to government employees, the chief minister announced a 35% increase in the basic salary of employees of BPS-1 to 16 and a 30% increase in the salary of employees of BS-17 and above.

He also proposed a 17.5% increase in pensions and a 35% increase in the minimum wage of Rs25,000 which would come up to approximately Rs35,550.

Meanwhile, other adhoc relief would the same as has been announced by the federal government.

Tax Rationalisation

The chief minister noted that Sindh government was cognizant of hardship faced by inflation ridden common people. “Therefore, we have adopted a strategy of rationalising various tax bases to protect underprivileged segments of society from unnecessary financial burden,” he said.

“With these rationalisations the affluent class will be taxed to generate revenue to provide necessary relief to general public,” he added.

CM Murad further said that some provisions will be simplified and rationalized to reduce the compliance burden, promote the entrepreneurial spirit and provide tax relief to people and businesses.

Development

Shah said the government has fixed a sum of Rs410 billion for development schemes.  The government has allocated Rs380 billion for the annual development program while the total development budget is estimated at Rs689 billion, Shah said.

“In addition to regular ADP, Government of Sindh’s Development portfolio under Public Private Partnership mode stands at Rs. 487 billion whereby Projects of Rs. 60 billion have already been executed, Projects of Rs. 144 billion are presently at different stages of construction and Projects amounting to Rs. 283 billion are at the bidding stage.”

Shah said the government has allocated Rs380 billion for the annual development program while the total development budget is estimated at Rs689 billion.

Transport sector

The chief minister said that the government has set aside Rs13.4 billion for the transport sector in budget 2023-24, a 92pc increase from the amount fixed in the last budget.

“As an antidote to hiking fuel and fare prices, a one-time fare subsidy of Rs247 million has been provided to Sindh Intra District Peoples Bus to be passed on to commuters”.

A provision of Rs 2.0 billion has been kept for operations and maintenance of the bus service.

In Phase-II of the project a huge allocation of Rs10.0 billion has been kept for inclusion of fleet of 500 diesel hybrid buses. To facilitate employees of Sindh secretariat 03 new routes will start from next year with a provision of R 6.0 million.

Law and order

He said that PPP-led Sindh government has decided to pay special attention to law and order in the budget and proposed to allocate Rs160 billion for the purpose. Rs 2.79 billion have been allocated for fighting dacoits and Rs 130 million for forensic laboratory in Sindh budget 2023-24.

Rain and floods

On recent floods, Murad Ali Shah said that Rs160 billion has been proposed for rain and flood victims, Rs12 billion for mega projects in Karachi, and Rs90 billion for the works services department.

Education

Rs 353 billion has been allocated for the Education Department. About, 1500 lecturers will be appointed through the Sindh Public Service Commission (SPSC).

Rs 403.3 million has been allocated in the budget for the construction of 23 new colleges in different districts of the province. Rs25 billion grant for public universities, and Rs 3 billion has been fixed for the construction of flood-damaged schools.

Health

It is proposed to set aside Rs20 billion for the development budget of the health department.

The sales tax collection during 2023-24 will amount to Rs235 billion while Rs143 billion will be collected on account of excise and taxation, CM Murad Ali Shah added.

The non-tax revenue will stand at Rs32 billion while Rs21.9 billion will be received on account of Public Sector Development Programme, he said.

Livestock & Fisheries

According to Shah, budget estimates for activities relating to livestock and fisheries for next year 2023-24 has been proposed as Rs10.987 billion.

It includes Rs150 million for the newly established Livestock Breeding Services Authority, Rs120 million for holding Sindh Livestock Expo Event, and Rs1.88 billion for implementation of the Accelerated Action Plan in the livestock sector for addressing stunting and malnutrition.

Forestation

A provision of Rs2.78 billion has been earmarked in Budget Estimates 2023-24 for non-development expenditure related to Forest and Wild life against Rs2.45 billion in B.E 2022-23.

It includes Rs368.0 million for conservancy and development of new forest nurseries.

Wheat subsidy

The chief minister also announced an allocation of Rs63 billion to ensure a consistent supply of subsidised wheat to mills and affordable wheat flour to the public and a budgetary provision of Rs16.9 billion for the Poor Social Protection and Economic Sustainability Programme.