Sindh govt to increase development budget in upcoming fiscal year

Finance dept will give priority to the completion of ongoing schemes.

KARACHI: The Sindh government is likely to allocate Rs214 billion for development in the budget for the financial year 2016-17, which is scheduled to be presented by the finance minister on June 11.

According to officials in the finance department, the provincial development portfolio will stand at Rs157 billion as compared to the current financial year's Rs142 billion. Rs25 billion will be earmarked for districts in the upcoming budget, as compared to the Rs20 billion allocated this year. Similarly, the government has estimated Rs12 billion from foreign project assistance to initiate development schemes in the province.



"Priority will be given to the completion of ongoing schemes by spending 75% to 80% funds on them and only 20% of the resources will be available for new schemes," states the official website of the provincial finance department. It also says that 12% to 14% of the available resources of the annual development programme will be allocated for the schemes at a district level.



According to an official budget proposal available with The Express Tribune, the government has increased the education development budget by Rs3 billion, making the total Rs13 billion, as compared to the current year's Rs10 billion allocation. The health department budget has also been enhanced from Rs13 billion to Rs15 billion and for the road sector, the funds available will be enhanced from Rs9 billion to Rs12 billion. Meanwhile, Rs2 billion has been allocated for the home department and Rs2.9 billion has been earmarked for boards and universities.

A deputy secretary in the finance department, requesting anonymity, said that government expects to receive an estimated Rs578 billion from the federal government and has fixed a Rs152 billion target for provincial revenue. "The provincial government has planned to collect Rs78 billion from sales tax on services and Rs61 billion from other taxes," he said, adding that from the total development budget Rs125 billion will be spent on ongoing schemes and Rs31 billion on new schemes.





On the other hand, Chief Minister Qaim Ali Shah, while speaking to the media on Wednesday, accused the federal government of cutting provincial funds and said, "Federal government must shun its step-motherly treatment and allocate more funds to Sindh". He added that Sindh contributes more than 70% of Pakistan's revenue but the Pakistan Muslim League - Nawaz government has only allocated Rs20 billion in the Public Sector Development Programme for the province. The chief minister vowed that his government will give the most benefits to the people in the upcoming budget.

Published in The Express Tribune, June 9^th, 2016.