KARACHI: The Karachi Metropolitan Corporation on Tuesday passed a tax-free budget of Rs25.982 billion for the next financial year 2021-22 with a surplus of Rs12 million and estimated expenditures of about Rs25.970bn.

In the absence of an elected set-up, KMC Administrator Laeeq Ahmed approved the budget using the powers of the City Council. No new tax has been imposed in the budget.

The administrator said that for the next financial year priority was given to those development schemes which were in the public interest.

“Non-development schemes are kept to minimum, new and ongoing projects of roads, gardens, playgrounds and sports complexes have been added to improve the infrastructure of Karachi,” he added.

No new tax has been imposed in the budget for fiscal year 2021-22

He said that under the Annual Development Programme (ADP) 200 schemes started during the outgoing financial year would be expedited and completed in the next fiscal year.

Mr Ahmed said that with the onset of the monsoon season, priority would be given to the schemes that were expected to provide relief to the citizens. “The process of cleaning the storm-water drains is underway and will continue in the future as well,” he added.

The administrator said that in order to provide recreational facilities, all important places of Karachi including zoo, Hill Park, Kidney Hill Park, Bagh Ibne Qasim would be improved while a total of 45 parks of KMC be developed.

Sindh govt to give Rs15.07bn

The largest source of revenue in the KMC budget is the Octroi Zila Tax (OZT) share and grant-in-aid of Rs15.07bn from the Sindh government while the District ADP is expected to stand at more than Rs5bn.

In the budget of the next financial year, a total of Rs2.451bn had been allocated for development works besides allocation of funds for district ADP.

The estimated collection from the revenue departments of KMC is Rs1.70bn and the estimated collection from the Municipal Utility Charges Tax (MUCT) is Rs1bn.

Outstanding dues of Rs1.85bn on K-Electric and Rs100m on the Karachi Port Trust are shown in the budget.

Similarly, in terms of expected revenue during the next financial year, Rs1.53bn from World Bank-funded project CLICK, Rs184.7m from culture, sports and recreation; Rs261.5m from transport and communication; Rs222.9m from veterinary services; Rs201m from municipal services; Rs100m in terms of income transfer from the Sindh Building Control Authority (SBCA); Rs95m from engineering department; Rs81.4m from medical and health services; Rs35.78m from parks and horticulture and Rs15.62m from enterprise and investment promotion was expected to be generated.

Uplift projects

The development projects for which funds have been allocated during the next financial year included Rs800m for construction of road from Machli Chowk to Kanupp Road; Rs300m for rehabilitation and development of Allama Shabbir Ahmed Usmani Road; Rs120m for cleanliness of drains; Rs100m for repair of extension joints of all bridges; Rs100m for supply and installation of drainage sewerage lines at the Zulfikarabad Oil Tankers Terminal; Rs81m for renovation and repair of hippodrome; Rs80m for improvement of fish aquarium; Rs80m for development and repair of roads, sidewalks and bridges.

An amount of Rs70m is allocated for Shahabuddin Market adjacent to Empress Market; Rs68m for purchase of ventilators in KMC hospitals; Rs60m for installation and repair of street lights on Mai Kolachi Road; Rs50m for roadside tree plantation; Rs50m for purchase of animals and birds in Karachi Zoo and Safari Park; Rs49m for purchase of medical, electrical and other equipment in KMC hospitals; Rs40m for development and improvement of Safari Park and zoo and Rs15m for construction of badminton court in Aga Khan Park.

Published in Dawn, June 30th, 2021