KARACHI: The Sindh government unveiled on Saturday a Rs739.3 billion budget for 2015-16, having a deficit of Rs12.72bn and a development outlay of Rs214bn.

The budget focuses on improving delivery of services in the social and economic sectors.

Tabling the next financial year’s budget in the Sindh Assembly, Finance Minister Syed Murad Ali Shah said the budget was aimed at meeting the essential needs of the populace through optimal utilisation of resources, enhancing security to ensure peace and economic well-being, improving service deli­very in the education and healthcare sectors, setting up new power plants and building infrastructure.

In view of the hardship being faced by government employees, he said, the provincial government had proposed a 10 per cent ad hoc increase in their basic pay. A 25 per cent increase in medical allowance was also proposed. The minimum wage was increased from Rs12,000 to Rs13,000 per month.

Murad Ali Shah said the government had chalked out comprehensive development projects for Karachi and earmarked Rs49.73bn for spending on transport, water supply, sewage disposal and management of waste in the city.

10pc raise in govt employees’ basic pay proposed

Mr Shah said Rs37.56bn had been allocated for Hyderabad division, Rs27.34bn for Sukkur, Rs33.58bn for Larkana, Rs34.58bn for Mirpurkhas and about Rs18bn for Benazirabad.

The minister said the government accorded top priority to education and had allocated 28.65 per cent of next year’s total current expenditure to the sector. In absolute terms, the government had set aside Rs144.67bn for education against Rs134.73bn in the current year — an increase of 7.6 per cent.

Similarly, the revenue expenditure in the health sector had been raised significantly from Rs43.48bn to Rs54bn.

LAW & ORDER: The minister said Rs65.33bn was proposed to be spent on law and order, with Rs61.82bn being allocated for the Sindh Police, Rs2.43bn for the Rangers and Rs1.05bn for the Frontier Constabulary. About Rs1.5bn had been set aside for training and research in the sector.

The government had earmarked Rs16.5bn for the Annual Development Plan of the energy sector. Five solar power projects of 20MW each were proposed to be set up in Thatta, Benazirabad, Sukkur, Jamshoro and Larkana districts. The work on generation of 10,000MW from Thar coal would continue.

The minister said the current revenue receipts for the next year, evident from federal transfers-revenue assignment, straight transfers and grants to offset losses due to abolition of the Octroi and Zila Tax were estimated to be Rs494.12bn against the revised estimates of about Rs423bn for the outgoing year.

The provincial tax receipts (excluding GST), provincial sales tax on services and provincial non-tax receipts were estimated at Rs144.12bn for next year against revised estimates of Rs127.97bn in the outgoing year.

The current capital receipts were estimated to be Rs31.97bn in 2015-16.

The minister said the current revenue expenditure for the coming year was estimated at Rs503.34bn against revised estimates of Rs454.56bn for this year. And the current capital expenditure estimated for year 2015-16 was Rs22.3bn against revised estimates of Rs21.57bn this year.

Mr Shah said the Sindh Revenue Board (SRB) was the only tax authority in the country which had successfully met its targets. It had managed to register growth of between 25 per cent and 35 per cent every year since its inception.

He said that in the current year his government hoped to collect Rs49bn, an increase of 24 per cent as compared to last year.

The SRB envisaged an annual growth of 28 per cent in tax revenue collection and hoped to collect Rs61bn next year. In order to meet the target the tax net needed to be broadened by adjusting tax rates in several categories next year.

UPROAR IN HOUSE: When Mr Shah began his budget speech, legislators belonging to the opposition parties, the PML-F, PML-N and PTI, and former chief minister Liaquat Ali Jatoi staged a protest over what they called “non-inclusion of our development schemes in the annual development plan”.

They left their seats and gathered in front of the speaker’s rostrum, chanting slogans against the government.

The minister tried to reason with them, saying the projects slated for their areas were under consideration. The opposition leaders continued their protest for some time before walking out of the house.

They, however, returned to the house later and again began raising slogans against the government. They finally walked out of the house, never to return during the day’s proceedings.

Published in Dawn, June 14th, 2015

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