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Business Recorder
2 days 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
Express Tribune
08-05-2025
- Business
- Express Tribune
Pakistan meets key IMF conditions
Listen to article The International Monetary Fund's $7 billion bailout package largely remained on track during the first nine months of this fiscal year, as the federal and provincial governments met three out of five major fiscal conditions, with the Federal Board of Revenue (FBR) remaining the only weak link. The FBR missed its two key conditions of collecting Rs9.17 trillion total revenues and Rs36.7 billion from retailers under the Tajir Dost scheme during July-March period of this fiscal year, showed the fiscal operations summary released by the Ministry of Finance on Wednesday. The IMF has set multiple fiscal conditions, whose successful completion has so far helped smooth continuation of the programme despite initial setbacks. In spite of achieving critical revenue targets, the federal government's net revenues were still Rs394 billion less than its needs for just two heads; interest payments and defence spending, according to the Finance Ministry. The fiscal operations' summary showed that Pakistan met the IMF targets for a primary budget surplus by the federal government, as well as net revenue collection and cash surplus targets by the four provinces. Against a primary surplus target of Rs2.7 trillion, the federal government reported a surplus of Rs3.5 trillion, or 2.8% of gross domestic product (GDP). This higher surplus was primarily due to fully booking the annual central bank profit in the first quarter, with the entire estimated profit of Rs2.5 trillion already accounted for. The four provinces collectively generated a cash surplus of Rs1.028 trillion, exceeding the IMF target by 25 billion. The federating units also generated Rs685 billion in tax revenues, surpassing the IMF target by Rs79 billion. The Finance Ministry said that the provincial tax collection "strong performance was primarily driven by the governments of Sindh, Khyber Pakhtunkhwa (K-P), and Balochistan". It did not mention Punjab government in the statement. The ministry further stated that non-tax revenues of the provinces reached to Rs203 billion, surpassing the target of Rs160 billion by Rs43 billion. This achievement reflects the collective efforts of all provincial governments in enhancing non-tax revenue streams, it added. The federal government's tax revenue performance was below the mark. The FBR failed to collect any significant revenue under the Tajir Dost Scheme against the target of Rs36.7 billion for nine months. The traders' income tax contribution through withholding taxes too remained negligible compared to salaried class's Rs391 billion payments in nine months. Moreover, against a nine-month revenue target of over Rs9.2 trillion, the FBR pooled Rs8.5 trillion, falling short of the goal by Rs715 billion. Thanks to the central bank and millions of people paying petroleum levy, the non-tax revenues amounted to over Rs4 trillion, exceeding the target by Rs71 billion. In just nine months, the petroleum levy collection amounted to Rs834 billion compared to Rs720 billion in the last fiscal year. Provincial governments enjoy significant fiscal flexibility due to increased revenues under the National Finance Commission (NFC) award. During the July-March period, the four provincial governments spent approximately Rs5.3 trillion, with development spending reaching Rs1.2 trillion. Their total revenues stood at Rs6.1 trillion, of which Rs5.1 trillion came from their shares in the federal taxes. A breakdown of provincial performance shows that Punjab, with total revenue of Rs2.9 trillion, spent Rs2.4 trillion, generating a surplus of Rs441 billion. However, the province recorded a statistical discrepancy of Rs117 billion, mainly due to below-the-line expenditures to retire wheat debt. Sindh booked a cash surplus of Rs395 billion after spending Rs1.5 trillion well below its total revenues. The province also reported a Rs10 billion statistical discrepancy. Khyber-Pakhtunkhwa (K-P) recorded a budget surplus of Rs111 billion, with Rs1.03 trillion in income and Rs920 billion in expenditures. K-P also had a statistical discrepancy of Rs13 billion. Balochistan generated a surplus of Rs105 billion, meaning the province has more revenue than its needs. The federal government last month increased the petroleum levy rate by Rs8 per litre in the name of funding Balochistan roads. The Finance Ministry said that provincial development overspending was primarily observed in Punjab and Balochistan, while Sindh and K-P remained within their development expenditure targets. Pakistan has agreed to approximately 40 conditions under the $7 billion IMF deal. As part of the programme, the four provincial governments must generate a total cash surplus of Rs1.217 trillion in the current fiscal year. On the expenditure side, the federal government spent a total of Rs11.5 trillion during the first nine months, with current expenditures reaching Rs10.7 trillion. This represented an Rs1.9 trillion or 19% increase in total expenditures compared to the same period last year, primarily due to rising interest payments. The federal government paid Rs6.4 trillion in interest costs, an increase of Rs921 billion from the previous year. Defence spending amounted to Rs1.42 trillion, higher by 16.5%. After distributing the provincial share, the federal government's net income stood at Rs7.5 trillion, which was Rs394 billion less than the combined spending on interest and defence. The Finance Ministry said that its primary current expenditures remained well within the targeted ceilings, with actual spending recorded at Rs4.3 trillion against a target of Rs5.2 trillion. The primary reason for this was lower releases of subsidies, which stood at only 49% of the allocated target. The ministry admitted that the development expenditure of Rs309 billion also remained under the spending target of Rs658 billion.
Time of India
29-04-2025
- Politics
- Time of India
Revenue minister orders fresh proposal on Jigaon land acquisition within 8 days
1 2 3 Nagpur: Maharashtra revenue minister Chandrashekhar Bawankule on Tuesday directed the Buldhana district administration to submit a revised proposal within eight days regarding land acquisition for the Jigaon irrigation project . This project has been delayed due to pending compensation claims. The project, designed to benefit farmers across 287 villages in Buldhana and Akola districts, has seen 8,782 unresolved claims, with farmers demanding a 40% increase in compensation, a statement issued by the minister's office said. At a high-level review meeting held at Mantralaya, Bawankule emphasised the urgency of resolving the dispute. "The Jigaon project is crucial for agricultural irrigation. Farmers must receive fair compensation. A new proposal with a 25% increased compensation for direct purchase should be submitted immediately," he said. The minister instructed that a joint meeting of farmers, officials, and legal representatives be convened to expedite the process. Once the proposal is submitted, it will be reviewed by the Rehabilitation and Resettlement Authority to take a final decision. Bawankule also proposed holding a special Lok Adalat to fast-track the settlement of pending claims, ensuring farmers have the opportunity to present their side. So far, only 565 of the 8,782 land acquisition cases have been resolved. The Jigaon project, with a planned storage capacity of 26 TMC, is expected to provide irrigation benefits to villages across Nandura, Jalgaon, Jamod, Shegaon, Khamgaon, Sangrampur, and Malkapur talukas in Buldhana, and Telhara and Balapur in Akola district. Chief secretary Deepak Kapoor, water resources secretary Sanjay Belsare, principal secretary Milind Mhaiskar, chief engineer Sanjay Tatu, and Buldhana collector Kiran Patil were among those present at the review meeting. Jigaon irrigation project in a nutshell * Envisaged for farmers in Buldhana and surrounding areas * Cost jumped from Rs394 crore to Rs5,700 crore in 15 years * Comprises construction of dam on Purna river, canals, sub-canals & lift irrigation facilities * Storage capacity is 736 million cubic metre & irrigation potential is 84,240 hectare * Five bridges are being built at the cost Rs450 crore, out of two are of not much use
