KARACHI, June 17: The Sindh government expects Rs6 billion loan from the International Development Authority (IDA) and Rs5 billion compensatory grant from the federal government to bill 15 per cent increase in salaries and pensions of the government employees from September.

This is how the entire team of Sindh’s economic managers tried to convince reporters on Tuesday in a post-budget press conference that the provincial budget for 2003-04 does not show any deficit.

The Sindh budget shows an operational revenue surplus of Rs1.36 billion but is mysteriously silent on the funds availability for financing Rs14.73 billion development outlay that includes Rs11 billion annual development programme (ADP).

The first volume of the budget document announces “provincial contribution and funding of over-sized public sector development projects will be subject to availability of resources.”

“We are not showing these amounts in the budget,” Sindh Finance Minister Syed Sardar Ahmad said. He was repeatedly asked as to how the development outlay of Rs14.73 billion would be financed. “Capital receipts are of notional nature and hence cannot be a part of the budget,” he pointed out.

The post-budget press conference was addressed by Sindh Finance Minister Syed Sardar Ahmad, Planning and Development Minister Shoaib Bokhari, Special Assistant to Chief Minister on Information Salahuddin Haider, Additional Chief Secretary Finance Fazlur Rehman and Additional Chief Secretary Planning and Development Ghulam Sarwar Khero.

Responding to another question, the finance minister expressed the hope that the Provincial Finance Commission (PFC) would finalize its award of resources distribution between the provincial government and districts by August 15.

“We held the first meeting of the commission on June 9,” he informed the reporters and said that the commission was engaged in its task and would complete its recommendations by August 15. Till then, he said, the interim award of resources distribution between the districts and the provincial government would remain in place.

Newsmen asked several questions about delay in release of funds to the districts, which puts the government team into considerable trouble. Planning and Development Minister Shoaib Bokhari questioned the capacities of the districts to utilize funds.

Syed Sardar Ahmad had other arguments. “We do not have all the budgeted resources at our disposal,” he said and pointed out that the federal government transferred Sindh’s share every month. The provincial taxes and revenue also keep trickling in. “As the money accumulates, we release the funds to the districts,” he said.

Answering another question the provincial finance minister said that his government had serious reservations on the federal government’s proposal of setting up a provincial revenue authority. “It is not at all necessary that we should accept all those suggestions, which come from Islamabad,” he remarked and said the provincial government was studying the pros and cons of this proposal.

“Nonetheless, we are restructuring the Board of Revenue (BoR) and excise and taxation departments to streamline tax collection,” he said.

He said that his government had also serious reservations on the Local Government Ordinance and Police Ordinance 2002. “We have communicated our reservations on these issues to President Pervez Musharraf,” he said.

Sardar Ahmad said the government would review the implementation of budget every month and added it was a “performance budget”. He was asked that none of the heavy load of the Sindh budget documents show a single actual achievement result in any sector — revenue, development, expenditure, etc. “We get this information after three years,” the finance minister replied. He was found wanting for an answer when asked as to how he would get information on implementation and results of the budget every month.

Sardar Ahmed and Shoaib Bokhari spoke of the relief given to various segments of population. The minister was visibly irritated when he was told, “You have offered reliefs to property owners but nothing has been given to the miserable lot — the landless peasants and wretched slum dwellers and jobless in the cities.”

“Should we give charity and dole out funds for jobless,” was the angry remark. He said that about five to 10 per cent of Rs11 billion ADP stipulates revenue expenditure for those who would offer goods and services in implementation of development programme. “We estimate creation of 24,000 jobs,” he pointed out.

Answering other questions, the minister said the Sindh government had raised the issue of National Finance Commission and Thal Canal with the federal government.