Screengrab of Sindh C.M. Murad Ali Shah’s budget speech
In a traditionally raucous session of the Sindh Assembly on Tuesday, Chief Minister Murad Ali Shah, who also holds the finance portfolio, presented a Rs. 1.7 trillion “pro-poor” and “tax-free” budget for fiscal year 2022-23.
Noting that the events of the past year had placed many additional burdens on the common man, he said the Government of Sindh had decided to ensure “economic and political stability” by contributing to the national effort. “May democratic forces always rise and shine in this country. May Almighty Allah bestow us with courage and ability to serve the people of our motherland,” he said.
Presenting the budget, he said revenue would include Rs. 1.055 billion from the center; Rs. 374.5 billion from the province—Rs. 27 billion through non-tax receipts; Rs. 51.1 billion current capital receipts; Rs. 105.5 billion in the form of grants and aid; and Rs. 20 billion carry over cash balance. The province has set collection targets of Rs. 180 billion for the Sindh Revenue Board; Rs. 1.2 billion for Excise and Taxation; and Rs. 30 billion for the Board of Revenue.
On expenditures, the chief minister said current revenue expenditures for the next financial year would be Rs. 1.19 trillion, with current capital expenditures to hit Rs. 54.48 billion and development portfolio Rs. 459.65 billion. He said the provincial government had received Rs. 716 billion in the past 11 months against a share of Rs. 732 billion, a shortfall of Rs. 16 billion.
Summarizing the Annual Development Program, the chief minister said it had been kept at Rs. 30 billion for the second consecutive year. Additionally, he said, 4,158 schemes, including 2,506 ongoing and 1,652 new ones, had been allocated Rs. 332.165 billion. He claimed 1,510 schemes would be completed in the upcoming fiscal year.
He said Rs. 26.85 billion had been allocated for a pro-poor, social protection, and economic sustainability package.
The provincial government has also announced that ad-hoc relief allowances for 2016, 2017, 2018, 2019, and 2021 at the rates admissible to employees of the federal government were being merged and revised basic pay scale 2022 for civil servants of Sindh government was being introduced on the pattern of the federal government. The chief minister said an ad-hoc relief allowance of 15% of basic pay scales would be provided to government servants from July 1.
“Disparity Allowance at the rate of 33% of basic pay will be paid to civil servants in BPS-1 to 16 and at the rate of 30% 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 2022,” he said, adding that pensions were being increased by 5%..
The chief minister said toll manufacturing services would be exempt from Sindh services tax, adding that a 5% reduced SST rate for “recruiting agents” would continue for the next two years. “This relief is proposed for Pakistanis aspiring to work overseas,” he said.
The budget has also extended a 10% reduced rate for services provided by cable TV operators till June 30, 2024.
On education, Shah said that the government had allocated Rs. 326.8 billion for the important sector, over 25% of the total budget outlay. He said the government would either establish a full-fledged university or a campus of a recognized public university in at least seven districts—Korangi, Karachi West, Keamari, Malir, Tando M Khan, Tando Allah Yar, and Sujawal.
The total outlay of the health budget for fiscal year 2022-23 has been proposed at Rs. 206.98 billion, covering primary, secondary, and tertiary healthcare services, preventive interventions as well as other communicable and non-communicable diseases.
On law and order, total allocation for the Home Department, including Sindh Police and jails, has been enhanced from Rs. 119.98 billion to Rs. 124.873 billion. The budget for irrigation has been enhanced from Rs. 21.231 billion to Rs. 24.091 billion.
The Karachi Water and Sewerage Board has been allocated Rs. 224.675 billion in the financial year 2022-23, with plans to implement the resettlement of affectees of Gujjar, Mehmoodabad, and Orangi Nallahs for Rs. 9.423 billion and the Greater Karachi Bulk Water Scheme K-IV augmentation works for Rs. 511.724 billion.
The Sindh government has also increased the Sindh Solid Waste Management Board’s budget from Rs. 8 billion to Rs. 12 billion for the next financial year 2022-23.
The budget has also allocated the Social Protection Department with Rs. 15.435 billion.
Per tradition, opposition lawmakers of the Pakistan Tehreek-e-Insaf clashed with their colleagues from the Pakistan Peoples Party, even going so far as to accuse each other of stealing mobile phones. The opposition continued its narrative of “imported government unacceptable” and, much like years past, tried to drown out the chief minister’s speech with slogans and jeers throughout.