KARACHI, June 8: For the first time in the last four years, the Sindh budget for 2006-07 will carry an “all-funded development outlay of Rs32 billion”. In the last four years, all the ADPs remained unfunded and every year the budget documents of development outlay carried a special note “subject to availability of funds”.

“No such note will be put in the budget documents this time,” a well-placed source in Sindh government informed Dawn while indicating the total size of the next budget at about Rs148-150 billion.

In the last four years, the Sindh government provided a total of Rs58 billion development funds. But each year, the development programme remained unfunded and every year the current revenue budget also showed an operational shortfall. But at the end of the day, the operational shortfall of the current fiscal year was plugged and the development programme was financed.

The current fiscal year budget shows a revenue operational shortfall of Rs6 billion and an unfunded ADP of Rs24 billion. At the end of the year, the operational revenue shortfall has been met and officials and politicians claim of having fully implemented the ADP. In 2004-05, there was a big revenue shortfall and an unfunded ADP of Rs18 billion. In the year 2003-04, there was Rs11 billion unfunded ADP and a revenue shortfall, and it was Rs5 billion ADP in 2002-03, with a revenue shortfall.

The magic was to provide highly inflated block allocations in the current revenue expenditure budget which contributed to bulging resource gap. From this block inflated allocation, the government used funds for current revenue and also for the development.

A World Bank mission in January this year gave a hard look at the book keeping and accounting practices in Sindh.

It indicted the Sindh government for block allocations and advised for transparent book keeping.

Taking note of harsh observations by the World Bank, the Sindh government is now trying to observe the rules of transparent accounting and prudent book keeping in the next budget. Sources said the next ADP of Rs32 billion provides Rs8 billion for district governments and Rs24 billion for the provincial government.

The provincial government’s ADP includes special block development programme of Rs2 billion each for Karachi, Hyderabad and the rural areas. It focuses on lining of canal network, education, healthcare and water supply in the rural areas. There will also be a medium-term development outlay in which projects are being taken up with the assistance of the federal government-financed development outlay.

The sources say the 15 per cent increase in dearness allowance for government employees will put an additional burden of about Rs3.5 billion on the Sindh budget. With a total workforce of about 450,000, the total wage bill of the Sindh government is about Rs35 billion a year. Education, police and health departments have the largest number of employees. About two years ago, there were about 6,000 school buildings which were not used. These buildings were vacant and were used as parlours and cattle pens by local waderas.

The World Bank mission was informed that out of 45,000 government primary schools in the province, about 50 per cent are without basic amenities. There is no boundary wall, water, latrines and other basic facilities.

Sindh boasts of having declared education up to matric free and compulsory as far back as 1943. In 2001, Dr Hafeez Sheikh, then finance minister of Sindh, also declared education up to matric free and compulsory. In 2006, the World Bank mission was informed that the enrolment ratio in Sindh was only 48 per cent. It means that out of 100 school-going children, 52 children will never see schools.