KARACHI: Sindh Chief Minister Syed Murad Ali Shah unveiled a Rs3.056 trillion provincial budget for the fiscal year 2024-25, proposing up to a 30% increase in government employee salaries.
The budget allocates a substantial Rs959 billion for development expenses, accounting for 31% of the total outlay. The “balanced” budget focuses primarily on rehabilitating flood-affected people and providing social protection for the underprivileged.
The majority of the projected revenue for the province, 62%, comes from federal transfers, with provincial receipts contributing 22%.
Other revenue sources include current capital receipts of Rs22 billion, foreign project assistance of Rs334 billion, federal grants from the Public Sector Development Programme (PSDP) amounting to Rs77 billion, foreign grants totaling Rs6 billion, and a carryover cash balance of Rs55 billion.
Provincial receipts of Rs662 billion consist of Rs350 billion from sales tax on services, Rs269 billion from taxes excluding GST, and Rs42.9 billion from provincial non-tax receipts.
The budget allocation is as follows: 63% or Rs1.9 trillion for current revenue, 6% or Rs184 billion for current capital, and the remaining 31% or Rs959 billion for development expenditure.
Sector-wise allocation
Education sector receives the largest share of the budget at Rs519 billion, with Rs459 billion dedicated to current revenue expenditure.
Healthcare follows closely with a total allocation of Rs334 billion, of which Rs302 billion is earmarked for current expenses.
Local government ranks third with a proposed budget of Rs329 billion.
Agriculture is allocated Rs58 billion, energy Rs77 billion, irrigation Rs94 billion, Works & Services Rs86 billion, and Planning & Development Rs30 billion.
Relief Measures:
The provincial budget prioritizes social and economic well-being, especially post-floods, with several key relief measures:
Minimum Wage: A proposed increase to Rs37,000.
Social Investment: Rs34.9 billion targeting pro-poor initiatives.
Subsidy Programs: Rs116 billion to ease citizens’ financial burdens.
Housing Focus: Rs25 billion towards housing schemes.
New Initiatives:
Hari Card: Rs8 billion for financial support to 12 million farmers.
Inclusive Enclave: Rs5 billion for a complex offering various facilities in Korangi.
Fiscal Decentralization in Police: Allocations for 485 police stations’ expenditures.
Solarization Initiative: Rs5 billion for solar home systems.
Hub Canal Project: Rs5 billion for a new water canal in Karachi.
Mazdoor Card: Rs5 billion welfare program for labourers.
Pro-Poor Initiatives: Rs11 billion for agriculture and Rs12 billion for social protection.
Additionally, Rs3.2 billion for Universities & Boards, Rs2 billion for Housing & Town Planning, and Rs1.5 billion for the Department of Empowerment of Persons with Disabilities (DEPD).
KARACHI: Sindh Chief Minister @MuradAliShahPPP thanked Chairman @BBhuttoZardari and President Asif Zardari who chose once again to entrust him with the task of leading the province and realising their vision. pic.twitter.com/8iPeweN1bN
— Sindh Chief Minister House (@SindhCMHouse) June 14, 2024
