KARACHI: Murad Ali Shah Chief Minister of Sindh has presented the provincial budget for the upcoming financial year 2023-24. The budgetary outlay was Rs2.244 trillion.
The chief minister emphasized the commitment of the provincial government to revive Sindh’s economy.
“In order to achieve this goal, it is crucial to implement measures that address and combat climate change,” he said, adding that the incumbent government has incorporated green and sustainable initiatives into its overall strategy.
The budget for the upcoming fiscal year amounts to Rs2.237 trillion, reflecting a 35% increase compared to the previous year.
Additionally, the development budget for 2023-24 has been set at Rs410 billion.
The government has allocated Rs1,411 billion for current expenditure, marking a 17% increase from the previous year.
Specifically, Rs267.5 billion has been allocated for school education, Rs228 billion for health, and Rs143 billion for law and order.
Furthermore, the local government budget is set at Rs112 billion, and Rs136 billion has been allocated for expenditure, including interest payments.
Due to natural calamities and floods last year, an additional burden of Rs100 billion was incurred. Under the provincial annual development program, Rs87 billion were being set for flood rehabilitation.
“There is a huge financial gap to meet the construction needs of houses of flood victims,” the chief minister said, adding that according to the World Bank and others, 4.4 million acres of agricultural land was destroyed.
He further said 436,435 cattle worth $117.3 million were affected by the floods, 60% of the road network of the province was severely affected, 2.36 million houses destroyed, and 12.36 million people displaced.
On assurance from the federal government, Sindh has maintained a surplus of Rs184.125 billion.
Education
The Sindh chief minister said in the next financial year, Rs312.245 billion will be spent on education, which is 7% more than the previous year. To strengthen the education sector, 2,582 teachers’ vacancies were created.
The newly inducted teachers will be upgraded from grade 9 to 14. An approval for 892 vacancies will be accorded worth Rs846 million.
CM Shah said Rs26.78 billion will be spent on colleges across Sindh. In the next financial year, 23 new colleges will be established that will lead to 445 vacancies.
To strengthen the Sindh Higher Education Commission, Rs987.8 million have been set aside, while the grant for universities has been increased from Rs569 million to RsRs987.8 million.
The Sindh government has introduced the Accelerated Digital Learning under the SEF that will help reduce the number of out-of-school children.
He further said 125 micro-schools will be formed across the province to educate 12,500 students. For distribution of free book across Sindh, Rs2.53 billion have been earmarked.
Scholarships will be awarded to promote girls’ education, under which Rs140 million have been reserved for 800 million special children.
To rehabilitate destroyed schools, Rs300 million have been reserved, while the Rs2.161 billion annual budget of the EU program ASPIRE is being raised to Rs4.114 billion.
Provincial development
For investment purposes, Rs88 billion has been earmarked, while Rs26 billion is designated for pensions, and Rs701 billion is allocated for provincial development.
The CM mentioned that the federal transfers will amount to Rs1.353 trillion.
Tax revenue
In terms of tax revenue, the government expects to collect Rs235 billion from sales tax and Rs143 billion from excise and taxation during the 2023-24 period.
Non-tax revenue
Non-tax revenue is projected to reach Rs32 billion, and an additional Rs21.9 billion will be received through the Public Sector Development Programme (PSDP).
35% increase in salaries
While presenting the budget, the minister announced a 30-35% increase in salaries of government employees.
He said that the employees falling within grade 1 to 16 will benefit from a full 35% raise, while those officers positioned in grades 17 to 22 can anticipate a commendable 30% increase in their salaries.
The chief minister also announced raising the minimum wage from Rs25,000 to Rs35,500.
Annual development/expenditure
Murad Ali Shah stated that a total of Rs689.603 billion have been proposed, with specific allocations for various sectors. The provincial Annual Development Plan (ADP) will receive Rs380.5 billion, while Rs30 billion have been earmarked for the district ADP.
Additionally, Rs266.691 billion have been proposed for external assistance projects, and Rs22.412 billion have been allocated for the federal Public Sector Development Program (PSDP).
The minister emphasized the completion of ongoing schemes as a priority, with 80% of the budget allocated to this purpose.
Various sectors will benefit from the proposed budget, including education with Rs34.69 billion, health with Rs19.739 billion, and the home department with Rs11.517 billion worth of development schemes.
Furthermore, Rs25 billion will be allocated to irrigation projects, Rs62.5 billion for municipalities, housing, and town planning, Rs24.35 billion for public health engineering and rural development, and Rs89.05 billion for government buildings and roads under Works and Services.
In total, the proposed budget includes 5,248 projects, with Rs291.727 billion for 3,311 ongoing projects and Rs88.273 billion for 1,937 new projects.
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