Latest news with #Rs38.458
Express Tribune
a day ago
- Business
- Express Tribune
Sindh budget focuses on social, urban uplift
Listen to article The PPP's Sindh government on Friday unveiled a Rs3,451.87 billion budget for the fiscal year 2025-2026 — representing a 12.9% increase compared to the previous year's budget of Rs3,056.3 billion and a deficit of Rs38.458 billion. Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of provincial finance minister, presented the proposed budget in the Sindh Assembly, where the PPP holds a two-thirds majority. Shah announced a salary increase of 12% for government employees from grades-1 to grade-16 and a 10% raise for officers of grade-17 through grade-22. He also announced an 8% increase in pensions. "We are introducing a finance bill to abolish and decrease some taxes/levies/cess instead of increasing them," the CM stated amid a round of applause. "The budget emphasizes increased allocations for education, health, infrastructure, and social welfare, along with strategic initiatives to modernize governance and stimulate economic growth," he said. The province's receipts for FY 2025-26 are projected at Rs3,411.5 billion, marking an 11.6% rise compared to the current year. Federal divisible pool transfers, which constitute 75% of total revenue, are estimated at Rs1,927.3 billion, a 10.2% increase, despite a 5.5% shortfall in the current year's revised estimates. Additional federal transfers, including straight transfers and grants to offset losses from the abolition of the Octroi and Zila Tax (OZT), are also set to increase, bringing total federal transfers to Rs2,095.6 billion. The Current Revenue Expenditure (CRE) is set at Rs2,149.4 billion, reflecting a 12.4% increase from Rs1,912.36 billion in FY 2024-25. This rise is due to inflationary pressures, increased grants to non-financial institutions such as hospitals and universities, salary relief allowances for government employees, and higher pension payments. Total expenditure is expected to increase by 12.9% to Rs3,450 billion. Current revenue expenditure will grow by 12.4% to Rs2,150 billion, driven by salary and pension hikes (6%), grants to local bodies (3%), and substantial increases in key sectors. The police department has been allocated Rs189.75 billion, reflecting an increase of 15.7%. The health sector has been allocated Rs336.46 billion, with an 11.3% increase, while Rs518.05 billion has been allocated for the education sector, showing an 18% increase. Additionally, Rs20 billion has been allocated for Pro-Poor Social Protection and Economic Sustainability Initiatives, highlighting the government's focus on inclusive growth. To improve transparency and efficiency, education-related funds will be directly disbursed to schools. Grants-in-aid totaling Rs702 billion have been allocated for various government and non-financial institutions, based on directives from the Chief Minister's Secretariat and the Finance Department.
Business Recorder
a day ago
- Business
- Business Recorder
Rs3.45trn Sindh budget unveiled
KARACHI: With a deficit of Rs38.458 billion, Chief Minister Sindh Syed Murad Ali Shah unveiled Rs3.45 trillion provincial budget for the fiscal year 25-26 (FY26) in the Sindh Assembly on Friday, proposing a cut in the sales tax on service to 8 percent amid opposition's protest. Speaking at the budget session, the chief minister announced the government's a 'forward-looking development agenda' with scores of 'transformative new initiatives' across the key sectors including education, health, agriculture, infrastructure, social protection, and local governance. 'These initiatives reflect our commitment to equity, innovation, and inclusive growth.' According to the budget documents, the Sindh government budget outlay has been increased by Rs394 billion or 13 percent to Rs3.450 trillion for FY26 compared to Rs3.056 trillion for previous fiscal year. Total receipts of the province are estimated to rise by 12 percent from Rs3.056 trillion in FY25 to Rs3.412 trillion for the next fiscal year. On receipts side, current revenue receipt estimates increased by 10 percent to Rs2.824 trillion including, revenue assignment Rs1.927 trillion, straight transfer Rs116.433 billion, grants to offset losses Rs51.81 billion, provincial tax receipts (excluding GST on services) Rs288 billion and provincial sales tax on services and taxes from agricultural Rs388 billion. In addition, the current capital receipts estimated Rs33 billion, carryover balance Rs100 billion, foreign grants Rs10.838 billion, foreign project assistance RS 366.744 billion and other grants Rs75.58 billion. As per budget estimates, Current Revenue Expenditure (CRE) have been pitched at Rs2.150 trillion, being 12.4 percent higher than budget estimates of Rs1.912 trillion for the FY 2024-25. The increase is mainly due to inflationary impact on the operating expenses, enhancement of grants-in-aid to non-financial institutions including hospitals, public sector universities, local councils, necessary salary raise in shape of relief allowance to the government employees and raise in pension expenditure due to increase in pension. Current capital expenditures estimates; however, increased from Rs184 billion to Rs281.6 billion. The chief minister said that projects under the public health and sustainable development goals are likely to see a budgetary share of Rs45 billion with 50 percent specifically for water sector schemes, supporting clean water access and climate resilience A Rs25 billion of financial allocation is reserved for the home-based solar systems including a portion earmarked to scale decentralised, off-grid solar solutions for household in rural and underserved areas across the province. CM Murad said that the government is set to launch a comprehensive, multi-year agriculture reform program— an ambitious initiative aimed at modernising farming, improving livelihoods, and enhancing food security. He added that the Benazir Hari Card will be the delivery platform for subsidies and services, as so far 200,000 farmers have been enlisted under this program. In next financial year, he said, the number for erecting new homes will rise to around 1.5 million from 1.1 million in the current fiscal year. 'We have opened bank accounts for more than 1.3 million beneficiaries for the rehabilitation of more than 12.3 million flood-affected populations'. The irrigation sector will receive Rs42 billion funds, denoting the Sindh government's commitment to the farmers' community and improvement of irrigation system in the province, he said. The allocation also includes a Rs10 billion block that has been proposed for de-silting of N W Canal and Dadu Canal at the time of Sukkur Barrage closure next year, maintaining irrigation infrastructure and ensuring smooth flow of water into different waterways. The budget estimates for livestock and fisheries sector has been proposed at Rs12.9 billion in a bid along with an amount of Rs120 million earmarked for helping the livestock farmers know about various breeds, modern methods of breeding, fodder cultivations and fishing and aquaculture. In line with the relief measures, the government has proposed 10 percent on an ad-hoc basis allowance for the employees from BPS-1 to BPS-22 so as to equip them to bear the impact of inflation. For the pensioners we have proposed an increase of 7 percent for the next fiscal year. The cumulative impact of these relief measures will be around Rs52 billion per annum, chief minister said. He said that there is a proposal under the government's inclusive policies to scale up the monthly rate of Special Conveyance Allowance from Rs4,000 to Rs6,000 to the differently-abled employees. This measure will have additional financial impact of Rs114.48 million, he added. However, he said that the government's decision about the minimum wage for the labour classis is under consideration keeping view the soaring inflation and rising cost of living. Copyright Business Recorder, 2025
