KARACHI: The Sindh government has presented a Rs869.1 billion budget for the next fiscal year (2016-17), with a deficit of Rs14.6 billion.
Sindh Finance Minister Syed Murad Ali Shah, amid a huge protest by opposition lawmakers in the Assembly, unveiled the budget, having a Rs225 billion Annual Development Programme (ADP), in which total revenue was estimated at Rs854.5 billion against the expenditure of Rs869.1 billion.
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The revenue from federal transfers is estimated to be Rs561 billion, while the Sindh government would collect Rs166 billion from its own resources and get Rs127.4 billion from other resources.
The finance minister termed the budget ‘people-friendly’, which was worked out in the spirit of reconciliation and participatory politics.
“This year also, we will be providing jobs to 50,000 people,” the minister said, adding that the jobs would include 20,000 in the Sindh police, 10,000 in the education department and 3,500 in the health sector.
He said that the Sindh government had been following the policy of spending a major portion of the budget on four priority sectors – education, health, law and order and local government. “We will continue with the same policy in the coming financial year,” he added.
Shah said that Rs160.7 billion had been allocated for the education sector followed by Rs82.3 billion for law and order that includes police, jails, Rangers and other security agencies. The allocation for the health sector was Rs65.9 billion. Other expenditures in the next financial year are estimated at Rs294.2 billion.
Certain relief measures have been suggested in the budget for government employees, pensioners and workers. A 10 per cent ad hoc relief allowance on running basic pay will be given to all employees from July 1. Minimum wage is being increased from Rs13,000 to Rs14,000 a month. A 10pc increase in pension and 25pc in net pension will be given to all pensioners above the age of 85 years from July 1.
An amount of Rs50.3 billion has been allocated in the head of the ADP for Karachi division; Rs53.5 billion for Hyderabad division; Rs22.7 billion for Sukkur division; Rs27.3 billion for Larkana division; Rs26.9 billion for Mirpurkhas division and Rs18.9 billion has been allocated for Shaheed Benazirabad division.
Although no new tax has been proposed, certain more services have been brought under the tax net through the finance bill, which would be taken up for consideration on June 23. The services include chartered flights, consultancy, public relations, visa processing, debt collection and supply chain management on which 13 per cent sales tax is being levied.
The Sindh Sales Tax on Services was being reduced from 14pc to 13pc in the next financial year, the minister said.
