CM Murad Unveils Rs1.71tr Budget, Assures Of Economic Stability In Province

CM Murad Unveils Rs1.71tr Budget, Assures Of Economic Stability In Province
While unveiling a Rs1.7 trillion budget for the fiscal year 2022-23, Sindh Chief Minister Syed Murad Ali Shah said that the provincial government will make every effort to ensure economic and political stability in the province.

In his speech, the CM said despite the fact that the past year witnessed “extraordinary changes” across the globe with its impact on the common man, the Sindh government will ensure economic and political stability in the province, contributing its shares in the common national effort, which is in line with the vision of the Pakistan People’s Party (PPP).

He said the total receipts of the provincial government for the next fiscal year would amount to Rs1.67 trillion against the expenditures of Rs1.71 trillion. which shows a deficit of Rs33.84 billion.

He elaborated that the revenue receipts would include Rs1.055 billion federal transfers, Rs374.5 billion provincial receipts (Rs167.5 billion provincial tax receipts excluding GST on services, Rs180 billion provincial sales tax on services and Rs27 billion provincial non-tax receipts), Rs51.1 billion current capital receipts, Rs105.5 billion other transfers such as foreign project assistance, federal grants and foreign grants and Rs20 billion carry over cash balance and public accounts of the province.

He added that the provincial tax collecting organisations would achieve their collection targets such as Sindh Revenue Board (SRB) Rs180 billion, Excise and Taxation Rs1.20 billion and Board of Revenue Rs30 billion.
He said that the current revenue expenditures for the next financial year would amount to Rs1.19 trillion, current capital expenditures will be around Rs54.48 billion, development portfolio Rs459.65 billion, including Rs332.165 billion provincial ADP, Rs30 billion district ADP, and RS91.467 billion Foreign Assistance Project (FAP) and Rs6.02 billion other federal grants.

The Sindh government has allocated Rs332.165 billion for Annual Development Program (ADP) 2022-23 while it was Rs222.5 billion during the outgoing year. The district ADP size has been kept at Rs30 billion as was done during the current financial year.

The chief minister disclosed that 4,158 schemes, including 2,506 on-going and 1,652 new schemes have been given an allocation worth Rs332.165 billion. He added that the on-going 2,506 schemes have been given 76% funds or Rs253.146 billion allocation and 1,652 new schemes have been allocated 24% funds or Rs79.019 billion.

The CM announced that 1,510 schemes would be completed in the fiscal year 2022-23.
He said Rs26.850 billion have been allocated for a ‘pro-poor, social protection and economic sustainability package’.

Sharing details about the relief measures, the CM announced that the adhoc relief allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of the federal government are being merged and revised basic pay scale 2022 for civil servants of the Sindh government is being introduced on the pattern of the federal government.

He also announced an adhoc relief allowance at the rate of 15 per cent of basic pay to government servants from July 1, 2022.

“Disparity Allowance at the rate of 33 per cent of basic pay will be paid to civil servants in BPS-1 to 16 and at the rate of 30 per cent to civil servants in BPS-17 and above in lieu of the differential rate of ad-hoc relief allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 and 2021, which are being abolished from July 1, 2022,” he said.

He said that the pensioners in the province are already getting a 22.5 per cent increase in net pension than pensioners of the federal government till February 2022. Therefore, he said an increase at the rate of 5 per cent of net pension would be paid to the pensioners of the provincial government from July 1, 2022.

The chief minister also announced that the police constables posted on grade BS-5 will be promoted to grade BS-7.

Murad also said that services provided by cable TV operators were levied at a reduced rate of 10 per cent, and the existing relief is proposed to be extended for a further period of two years, now ending on June 30, 2024.
The existing exemption on health insurance services will continue for a period of one year till June 30, 2023. GIZ, a German development agency, facilitating development projects in Sindh, has also been granted conditional exemption on sales tax on services as indirect relief to the public.

The CM said that his government has kept the education sector at its top priority by allocating Rs326.80 billion, which forms more than 25 per cent of the total budget outlay. He added that the health sector has also been given top priority with budgetary allocation at Rs230.30 billion, which forms more than 19 per cent of the total budget outlay.

The Sindh government will either establish a full-fledged university or a campus of a recognised public university in at least seven districts, one each in Korangi, Karachi West, Keamari, Malir, Tando M. Khan, Tando Allah Yar, and Sujawal.

The Sindh government allocated Rs206.98 billion for health section in the fiscal year 2022-2023, covering primary, secondary and tertiary healthcare level services, preventive interventions as well as other communicable and non-communicable diseases.

The total allocation for the Home Department, including Sindh Police and Jails, has been enhanced to Rs124.873 billion from Rs119.98 billion during the current financial year.

The budget for irrigation has been enhanced from Rs21.231 billion to Rs24.091 billion. Allocation for the Agriculture & Irrigation Department in ADP 2022-23 is Rs36.2 billion while the water & sewerage sector has been given Rs224.675 billion in the financial year 2022-23.

Earlier in the day, the Sindh cabinet approved the Rs1.71 trillion budget. The cabinet meeting was chaired by Murad and attended by provincial ministers, advisors, special assistants, chief secretaries, principal secretaries and other concerned officers.