Sindh Chief Minister Syed Murad Ali Shah on Saturday tabled an annual budget of Rs 2247.581 for the next financial year 2023-24 with a development outlay of Rs700.1 billion, which centres around the rehabilitation of flood-affected people and provides social protection to the poor people of the province.
The total revenue receipts of the provincial government have been estimated at Rs. 2,209.785 billion, representing an increase of 31.56 per cent from the concluding financial year 2022-2023, against the estimated expenditures of Rs 2,247.581 billion, representing a deficit of Rs. 37.795 billion.
The chief minister also announced a much-awaited Rs10 billion `the Sindh Safe Cities Project’ (Phase-I), for Karachi with a substantial allocation of Rs4.5 billion for the year 2023-24.
The new project including the connectivity of Lyari -Gujjar Nala in Central for Rs1.5 billion, the Construction of the Sea Wall and Road from Dolman Mall to China Port, Clifton for Rs1430 million, Construction of a 6-lane Expressway way from the existing Jinnah Bridge along with Lyari Naddi to Hawksbay, including bridge crossing on main Hawkasbay road and a small bridge on navy maritime security jetty area, Keamari for Rs1.8 billion, Construction of a 2+2 lane underpass at Karimabad Distt: Central for Rs1.35 billion, and establishment of Campuses of Public Sector Universities in Districts of Karachi – Korangi, West, Kiamari for Rs4000 million.
Murad Ali Shah presented his 12th Budget as Finance Minister, the seventh as the Chief Minister, and the fifth consecutive budget of his current concluding tenure on the floor of the provincial assembly.
Sindh CM Murad Ali Shah announced a 35 per cent increase in the basic salary of employees of BPS-1 to 16 and a 30 per cent increase in the salary of employees of BS-17 and above. He also proposed a 17.5 per cent increase in pensions and a 35 per cent increase in the minimum wage of Rs25000 which would come to around Rs35,550.
The other adhoc relief would be the same as has been announced by the federal government.
The estimated Total Receipts of the province include three revenue receipts: Current Revenue Receipts estimated at Rs. 1,823.126 billion, Current Capital Receipts estimated at Rs. 36.133 billion, and Other Receipts estimated at Rs. 295.53 billion. In addition to the revenue receipts, Carryover Cash Balance is estimated to be Rs. 45 billion and the net balance of the Public Accounts of the Province is estimated to be Rs. 10 billion, with Rs. 5,585.66 billion in Receipts and Rs. 5,575.66 billion in Disbursements, in the Financial Year 2023-24.
Current Revenue Receipts include a total of Rs. 1,353.2 billion in Federal Transfers in the form of Revenue Assignment estimated at Rs. 1,225 billion, Straight Transfers estimated at Rs. 64.42 billion, and Grants to offset losses of the abolition of OZT estimated at Rs. 33.74 billion. In addition, the head of Revenue Receipts includes estimated Provincial Tax Receipts of Rs. 202.9 billion, Provincial Sales Tax on Services of Rs. 235 billion, and Provincial Non-Tax Receipts of Rs. 32 billion.
Current Capital Receipts include Local Repayments/Loans estimated to be Rs. 6.133 billion and Bank Borrowing estimated to be Rs. 30 billion. Other Receipts include Foreign Project Assistance (FPA) budgeted at Rs. 266.7 billion, Other Federal Grants budgeted at Rs. 22.9 billion, and Foreign Grants budgeted at Rs. 5.92 billion.
The estimated expenditure of Rs. 2,247.58 billion includes a Current Revenue Expenditure of Rs. 1,411.2 billion, a Current Capital Expenditure of Rs. 136.26 billion, and a Development Expenditure of Rs. 700.1 billion. The latter includes Provincial ADP excluding FPA of Rs. 380.5 billion, Foreign Project Assistance of Rs. 266.7 billion, Other Federal Grants of Rs. 22.91 billion, and District ADP of Rs. 30 billion.
Shah also announced an allocation of Rs. 63.0 billion to ensure a consistent supply of subsidized wheat to mills and affordable wheat flour to the public; and a budgetary provision of Rs. 16.9 billion for the Pro-Poor Social Protection & Economic Sustainability Program.
With an increase of 4.8 per cent, grant to Local Councils has been kept at Rs88 billion.
The School Education budget has been enhanced by 13.1 per cent to Rs. 267.6 billion, Health Budget increased to Rs.227.8 billion, denoting a 10.1 per cent growth.
The Sindh government has been successful in attracting and securing Chinese grants of Rs7,659 million for the rehabilitation and reconstruction of 646 schools.
Under the Flood Restoration Program and Sindh Development Through Enhanced Education Program (DEEP), 112 damaged schools would be rehabilitated on resilient and environmentally friendly fabricated structures in five districts for Rs. 3,011 million.
Under Sindh Education & Literacy Department (SE&LD) portfolio, 46 new schemes related to the repair/rehabilitation of existing schools damaged by rain, have been included at an estimated cost of Rs. 4,416.257 million, and 45 schemes have been dedicated to the construction/reconstruction of existing schools affected by flood 2022 at cost of Rs. 4,492.004 million.
A new scheme titled “Program for Flood Response Through Reconstruction Of Education Facilities in Sindh” in partnership with JICA has been proposed. The share of the government of Sindh is Rs. 142.410 million has been proposed in ADP (2023-24) for districts such as Mirpurkhas, Khairpur, Badin, S.B.A, Sukkur, Ghotki & Dadu. Moreover, the share of JICA is estimated to be Rs. 1,424.218 million.
Transport Budget has witnessed an impressive growth rate of 167.8 per cent, rising from Rs. 5 billion to Rs. 13.4 billion. Similarly, the allocation for Energy has experienced a notable increase of 57.8 per cent, reaching a total of Rs. 47.9 billion.
The government is going to establish modern terminals at Karachi, Thatta, Badin, and Miro Khan in the first phase. The construction of bus terminals at Thatta Raod and Miro Khan is under process.
The BRT project is being implemented at a cost of Rs 2.36 billion. The corridor is 3.88 kilometres in length and will carry 50,000 passengers per day.
The Red Line will be a State of the Art Third Generation BRT System with a development expenditure of Rs 78.38 billion. The Project is a Zero Subsidy Project and 250 Bio-Hybrid Buses will provide service to more than 350,000 passengers per day. Additionally, we are also spending Rs 2.91 billion to improve the drainage along the Corridor and more than 25,000 trees will be planted in addition to the landscaping works worth PKR 63.4 million along the corridor.
Sindh has one of the largest irrigation systems in the country. It faced colossal losses in the last rain and floods which now demands extra funding in the next financial year, therefore, a significant amount of Rs 25.703 billion has been kept in budget estimates for 2023-24 for the Irrigation System. It includes Rs.900 million for silt clearance, Rs 5.0 billion for overall repair and maintenance of the system, and Rs.750 million for the Salinity Control and Reclamation Program (SCARP).
Sindh Housing Project has been immediately launched in targeted areas for the rehabilitation of flood-affected people. As of May 2023, we have received $230 million equivalent to Rs. 64.669 billion under these projects which are being expended on relief and rehabilitation activities.
In addition to the above, other projects that support the people of Sindh in the flood-affected areas include the $500 million Flood Emergency Rehabilitation Project, the $500 million Floods Emergency Housing Reconstruction Project, the $292 million Water, and Agriculture Transformation Project, and the $200 million Strengthening Social Protection Delivery System Project. $200 million Integrated Health and Population Project.
Sindh government has carefully prioritized the allocation of funds for law & order/Home dept at Rs 143.568 billion for the next financial year 2023-24 with a 15 per cent increase over last year’s allocation of Rs 124.87 billion.
He also announced Rs.15.5 million each to the Prison’s Policy & Management Boards for strategic improvements. Rs. 463.414 million for strengthening the prison department’s technical capabilities.
According to World Health Organization, 15 per cent of the world’s population are persons with disabilities. They are found to be socially and economically discriminated segments of our society. Sindh government is determined to extend support through imparting vocational education, and I.T skills and supplying assistive technology with artificial intelligence applications to empower them to contribute to the developmental process. To achieve this noble cause, CM announced a provision of Rs 6.1 billion for the year 2023-24 against the budget of Rs 3.4 billion in the current financial year 2022-23.
Women Development: The Women Development & Empowerment dept Budget Estimates for the financial year 2023-24 has been proposed at Rs 705.983 million against last year’s allocation of Rs 644.125 million.
A provision of Rs.500 million has been kept for the Benazir Women Agricultural Workers Program. This program will improve the agricultural output and living standards of rural women associated with the agricultural field.
The CM announced a Rs 10.987 billion budget estimate for livestock and fisheries for the next year 2023-24. It includes Rs. 150 million for the newly established Livestock Breeding Services Authority, Rs. 120 million for holding the Sindh Livestock Expo Event, and Rs. 1.88 billion for the implementation of the Accelerated Action Plan in the livestock sector for addressing stunting and malnutrition.
A provision of Rs.2.78 billion has been earmarked in Budget Estimates 2023-24 for non-development expenditure related to Forest and Wildlife against Rs.2.45 billion in 2022-23. It includes Rs.368 million for the conservancy and development of new forest nurseries.
Syed Murad Shah said that his govt would be able to earn $200-220 million, equivalent to around Rs 63 billion, of carbon credits over the next two decades for its efforts to expand mangrove forests. He said that the Sindh government is committed to an unconditional contribution to a global drive for reducing greenhouse gas emissions.
Sindh CM tables Rs2.24 trillion budget with deficit of Rs 37.7bn
