Sindh budget 2026-27: Development spending slashed, no new schemes planned

KARACHI: Chief Minister Syed Murad Ali Shah, who also holds the portfolio of finance minister, will present Sindh budget 2026-27 before the provincial assembly, ARY News reported on Wednesday, citing sources.

The total outlay of Sindh budget 2026-27  is over Rs3.4 trillion.

According to Sindh budget 2026-27 proposals, it is recommended to allocate Rs2.56 trillion for non-development expenditure in the upcoming financial year.

The provincial government has reportedly decided not to include any new development schemes in the budget 2026-27. Instead, funding is expected to focus on 3,642 ongoing projects at the provincial and district levels, for which an allocation of Rs400 billion has been proposed.

According to sources, the development budget is set to be reduced by Rs300 billion compared with the previous fiscal year. The total development outlay is proposed to be cut from Rs1.018 trillion to Rs720 billion.

Similarly, the net provincial development budget is expected to decline from Rs520 billion to Rs385 billion.

Sources further revealed that the district development programme has been reduced by Rs40 billion. Only Rs15 billion has been proposed for district-level development projects in the new fiscal year, compared with Rs55 billion allocated in the previous budget.

Read more: Punjab Budget 2026-27 announced: Rs5.9trillion outlay focuses on public relief and infrastructure

The province is also expected to receive Rs64 billion in development grants from the federal government, while external project assistance is estimated at Rs256 billion.

According to sources, no new development projects have been included in the Sindh budget for the 2026-27 financial year.

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