Sindh BUDGET 2024-25:

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Sindh BUDGET 2024-25:Sindh aims to spend a third of Rs3 trillion budget on development  KARACHI Sindh Chief Minister Syed Murad Ali Shah on Friday presented a Rs. 3.056 trillion budget for the next fiscal year 2024-25, proposing a massive hike of 22 to 30 pc in salaries and a significantly higher development expense of Rs. 959 billion, which accounts for (31pc) per cent of the outlay. The balanced budget mainly centres around the rehabilitation of flood-affected people and social protection for the poor. The total projected revenue for the province is north of Rs. 3 trillion. The majority of this comes from federal transfers (62%), followed by provincial receipts (22%). The remaining receipts are through current capital receipts of Rs. 22 billion, foreign project assistance of Rs. 334 billion, other federal grants in the form of PSDP of Rs. 77 billion, foreign grants of Rs. 6 billion, and a carryover cash balance of Rs. 55 billion.  Provincial Receipts of Rs. 662 billion comprise Sales Tax on Services of Rs. 350 billion, Tax excluding GST of Rs. 269 billion, and provincial non-tax receipts of Rs. 42.9 billion.  These funds are strategically allocated: 63 pc or Rs. 1.9 trillion goes towards Current Revenue, 6pc or Rs. 184 billionfor Current Capital, and the remaining 31pc or Rs. 959 billion is dedicated to Development Expenditure. Salaries account for the largest portion (38pc), followed by grants (27pc) directed towards various programs.  Non-salary expenses (21pc) encompass operational costs, transfers, interest payments, maintenance, and repairs.  Employee pensions and retirement benefits claim the remaining 14 pc of current expenditures. Current Capital Expenditure includes repayments of loans and others of a budgeted amount of Rs. 42 billion and Government Investment of Rs. 142.5 billion.  Development Expenditure includes Provincial ADP excluding Foreign Project Assistance of Rs. 493 billion, Foreign Project Assistance of Rs. 334 billion, Other Federal Grants through PSDP of Rs. 77 billion, and District ADP of Rs. 55 billion. Department Allocation:The Sindh provincial budget prioritizes investment in social services.  Education receives the largest allocation at Rs. 519 billion, with Rs. 459 billion dedicated to current revenue expenditure.  Healthcare follows closely with a total allocation of Rs. 334 billion, with Rs. 302 billion earmarked for current expenses. Local government rounds out the top three with a proposed budget of Rs. 329 billion. The budget also allocates significant resources to key infrastructure sectors: Rs. 58 billion for agriculture (including Rs. 32 billion for current expenditure), Rs. 77 billion for energy (with Rs. 62 billion for ongoing costs), Rs. 94 billion for irrigation (with Rs. 36 billion for current expenses), Rs. 86 billion for Works & Services, and Rs. 30 billion for Planning & Development.  This focus on education, health, local government, and infrastructure development reflects the government’s commitment to long-term growth and well-being for the people of Sindh. The remaining major departments include Transport (Rs. 56 billion), Works & Services (Rs. 86 billion), SG&CD (Rs. 153 billion), and Home (Rs. 194 billion).  Relief Measures:The Sindh provincial budget, presented by Chief Minister Syed Murad Ali Shah, prioritizes social and economic well-being, particularly in the wake of recent floods. This comprehensive approach incorporates several key relief measures: –              Increased Compensation: Salary increases of 22-30pc and pension hikes of 15pc aim to bolster financial security.-               Minimum Wage: Additionally, a minimum wage increases to RS. 37,000 is proposed.-              Social Investment: A significant allocation of RS. 34.9 billion targets pro-poor initiatives, directly assisting vulnerable populations.-              Subsidy Programs: The budget includes RS. 116 billion in subsidies to ease the financial burden on citizens.-              Housing Focus: A dedicated RS. 25 billion will be directed towards housing schemes, promoting access to safe and secure shelter. This multi-faceted approach reflects the government’s commitment to strengthening the province’s social safety net and fostering economic recovery. New Initiatives: The Sindh provincial budget extends its focus beyond immediate relief measures. Several new initiatives target the long-term development of the province’s economy and social well-being:-              Hari Card: A Rs. 8 billion allocation will provide financial support to 12 million farmers, bolstering the agricultural backbone of Sindh.-              Inclusive Enclave: Rs. 5 billion allocations to build a Complex to offer education, rehabilitation, training, accommodation, clinical services, recreation and other facilities within a compound at Korangi along the Malir Expressway.-              Fiscal Decentralization in Police: For the first time 485 police station-specific budget has been allocated to enable them to meet their fuel, repair & maintenance, and day-to-day expenditures to serve communities.-              Solarization Initiative: A Rs. 5 billion allocation over five years will be directed towards distributing solar home systems, and promoting clean energy access.-              Hub Canal Project: A dedicated Rs. 5 billion will fund the construction of a new canal to provide water to Karachi.-              Mazdoor Card: A Rs. 5 billion welfare program will provide support for labourers (“mazdoors”) in Sindh. Pro-Poor Initiatives:To ensure social upward mobility, the Budget allocates Rs. 11 billion to agriculture, Rs. 12 billion for social protection, Rs. 3.2 billion for Universities & Board, Rs. 2 billion for Housing & Town Planning, and Rs. 1.5 billion for DEPD.  Grants in Aid: The Sindh provincial budget prioritizes investment in human capital through significant grants for education and healthcare.  Major grants amount to a total of Rs. 190 billion, with Rs. 35 billion specifically earmarked for universities across Sindh.  These grants will also support major hospitals and medical institutes like SIUT, NICVD, Indus Hospital, SICHN, and Trauma Centers.  This targeted funding aims to strengthen educational institutions and improve access to quality healthcare services for the people of Sindh.Sindh BUDGET 2023-24:Sindh aims to spend a third of Rs3 trillion budget on development  KARACHI (June 14): Sindh Chief Minister Syed Murad Ali Shah on Friday presented a Rs. 3.056 trillion budget for the next fiscal year 2024-25, proposing a massive hike of 22 to 30 pc in salaries and a significantly higher development expense of Rs. 959 billion, which accounts for (31pc) per cent of the outlay. The balanced budget mainly centres around the rehabilitation of flood-affected people and social protection for the poor. The total projected revenue for the province is north of Rs. 3 trillion. The majority of this comes from federal transfers (62%), followed by provincial receipts (22%). The remaining receipts are through current capital receipts of Rs. 22 billion, foreign project assistance of Rs. 334 billion, other federal grants in the form of PSDP of Rs. 77 billion, foreign grants of Rs. 6 billion, and a carryover cash balance of Rs. 55 billion.  Provincial Receipts of Rs. 662 billion comprise Sales Tax on Services of Rs. 350 billion, Tax excluding GST of Rs. 269 billion, and provincial non-tax receipts of Rs. 42.9 billion.  These funds are strategically allocated: 63 pc or Rs. 1.9 trillion goes towards Current Revenue, 6pc or Rs. 184 billionfor Current Capital, and the remaining 31pc or Rs. 959 billion is dedicated to Development Expenditure. Salaries account for the largest portion (38pc), followed by grants (27pc) directed towards various programs.  Non-salary expenses (21pc) encompass operational costs, transfers, interest payments, maintenance, and repairs.  Employee pensions and retirement benefits claim the remaining 14 pc of current expenditures. Current Capital Expenditure includes repayments of loans and others of a budgeted amount of Rs. 42 billion and Government Investment of Rs. 142.5 billion.  Development Expenditure includes Provincial ADP excluding Foreign Project Assistance of Rs. 493 billion, Foreign Project Assistance of Rs. 334 billion, Other Federal Grants through PSDP of Rs. 77 billion, and District ADP of Rs. 55 billion. Department Allocation:The Sindh provincial budget prioritizes investment in social services.  Education receives the largest allocation at Rs. 519 billion, with Rs. 459 billion dedicated to current revenue expenditure.  Healthcare follows closely with a total allocation of Rs. 334 billion, with Rs. 302 billion earmarked for current expenses. Local government rounds out the top three with a proposed budget of Rs. 329 billion. The budget also allocates significant resources to key infrastructure sectors: Rs. 58 billion for agriculture (including Rs. 32 billion for current expenditure), Rs. 77 billion for energy (with Rs. 62 billion for ongoing costs), Rs. 94 billion for irrigation (with Rs. 36 billion for current expenses), Rs. 86 billion for Works & Services, and Rs. 30 billion for Planning & Development.  This focus on education, health, local government, and infrastructure development reflects the government’s commitment to long-term growth and well-being for the people of Sindh. The remaining major departments include Transport (Rs. 56 billion), Works & Services (Rs. 86 billion), SG&CD (Rs. 153 billion), and Home (Rs. 194 billion).  Relief Measures:The Sindh provincial budget, presented by Chief Minister Syed Murad Ali Shah, prioritizes social and economic well-being, particularly in the wake of recent floods. This comprehensive approach incorporates several key relief measures: –              Increased Compensation: Salary increases of 22-30pc and pension hikes of 15pc aim to bolster financial security.-               Minimum Wage: Additionally, a minimum wage increases to RS. 37,000 is proposed.-              Social Investment: A significant allocation of RS. 34.9 billion targets pro-poor initiatives, directly assisting vulnerable populations.-              Subsidy Programs: The budget includes RS. 116 billion in subsidies to ease the financial burden on citizens.-              Housing Focus: A dedicated RS. 25 billion will be directed towards housing schemes, promoting access to safe and secure shelter. This multi-faceted approach reflects the government’s commitment to strengthening the province’s social safety net and fostering economic recovery. New Initiatives: The Sindh provincial budget extends its focus beyond immediate relief measures. Several new initiatives target the long-term development of the province’s economy and social well-being:-              Hari Card: A Rs. 8 billion allocation will provide financial support to 12 million farmers, bolstering the agricultural backbone of Sindh.-              Inclusive Enclave: Rs. 5 billion allocations to build a Complex to offer education, rehabilitation, training, accommodation, clinical services, recreation and other facilities within a compound at Korangi along the Malir Expressway.-              Fiscal Decentralization in Police: For the first time 485 police station-specific budget has been allocated to enable them to meet their fuel, repair & maintenance, and day-to-day expenditures to serve communities.-              Solarization Initiative: A Rs. 5 billion allocation over five years will be directed towards distributing solar home systems, and promoting clean energy access.-              Hub Canal Project: A dedicated Rs. 5 billion will fund the construction of a new canal to provide water to Karachi.-              Mazdoor Card: A Rs. 5 billion welfare program will provide support for labourers (“mazdoors”) in Sindh. Pro-Poor Initiatives:To ensure social upward mobility, the Budget allocates Rs. 11 billion to agriculture, Rs. 12 billion for social protection, Rs. 3.2 billion for Universities & Board, Rs. 2 billion for Housing & Town Planning, and Rs. 1.5 billion for DEPD.  Grants in Aid: The Sindh provincial budget prioritizes investment in human capital through significant grants for education and healthcare.  Major grants amount to a total of Rs. 190 billion, with Rs. 35 billion specifically earmarked for universities across Sindh.  These grants will also support major hospitals and medical institutes like SIUT, NICVD, Indus Hospital, SICHN, and Trauma Centers.  This targeted funding aims to strengthen educational institutions and improve access to quality healthcare services for the people of Sindh.