Sindh slashes development funds by 18.8%

Move comes as a result of post-Covid economic slowdown, drop in revenue generation

KARACHI: Presenting its annual budget for the 2020-21 financial year on Wednesday, the Sindh government revealed that it had earmarked Rs232.94 billion for its Annual Development Programme (ADP) - a drastic decrease of 18.8 per cent.

This, according to the government, is due to the post-pandemic economic slowdown and a drop in revenue generation amid the financial crunch.

District ADPs aside, the provincial ADP has been pitched at Rs155 billion, while the foreign-funded and federally funded projects are estimated at Rs54.64 billion - around 23.5 per cent of the development budget - and Rs8.30 billion respectively. Furthermore, Rs117 billion apart from the development portfolio will be spent on infrastructure development through public-private partnerships.

The budget documents, available with The Express Tribune, show that the ADP distribution for education is Rs21.08 billion, which includes Rs13.15 billion for school education, Rs3.72 billion for college education, Rs128 million for the empowerment for persons with disabilities, Rs713 million for the Sindh Technical Education and Vocational Training Authority and Rs3.36 billion for universities and boards.

Meanwhile, a sum of Rs23.5 billion has been earmarked for health sector in addition to Rs5 billion for Covid-19 response. This includes the establishment of 200-bedded infectious diseases hospitals in Hyderabad, Sukkur, Larkana, Mirpurkhas and Shaheed Benazirabad, as well as the expansion and upgradation of several other hospitals.

For agriculture and irrigation, the provincial government has pitched the allocated ADP funds at Rs17.02billion, with Rs14.14 billion of foreign project assistance. This covers Rs615 million for a flood emergency reconstruction project for canals. Separately, the development budget for livestock and fisheries, amounting to Rs1.09 billion, includes Rs218.56 million for the rehabilitation and renovation of Karachi Fish Harbour.

Sindh budget unveiled with an outlay of Rs1.24 trillion

Furthermore, the home department has been allocated Rs666 million, which includes Rs371.72 million for the Sindh police and Rs294.27 million for the province's jails.

Funds worth Rs12.17 billion have also been set aside for the local government department, which includes funding for waste disposal facilities. In addition to this, Rs1.94 billion have been earmarked for a mega project for Karachi, which includes the construction of roads. The development budget for public health engineering, which covers projects such as the rehabilitation of non-functional water supply and drainage schemes as well as the elimination of discharge of urban sewerage in irrigation canals and lakes, adds up to Rs11.59 billion.

Moreover, the development portfolio for social welfare in the next fiscal year amounts to Rs233 million in addition to Rs3.91 billion under the provincial ADP for social protection. Another Rs3.3 billion of foreign project assistance have been allocated to a project to reduce stunting in growth.

For women's development, Rs120 million have been set aside, along with Rs117 million for foreign project assistance, while the development funds for labour and human resources are projected at Rs111 million. The ADP allocation for minorities has been set at Rs826 million, while the rehabilitation funds, covering a mobile healthcare unit project and the Sindh Resilience Project, were kept at Rs1.8 billion along with Rs1.13 billion of foreign project assistance.

A sum of Rs 1 billion has been allocated for energy department, including Rs498.75 million for the electrification of primary health facilities and Rs137.5 million for electrification of villages in and around Karachi. Of this amount, Rs75 million have also been set aside for the Sindh Solar Energy Project, which will receive Rs3.3 billion in foreign project assistance too.

The ADP for the transport sector has been pitched at Rs6.46 billion and Rs5.68 billion in foreign project assistance. Of these funds, Rs3 billion are to be used for the construction of underpasses and flyovers on railway crossings along the Karachi Circular Railway route, while more funds are set aside for bus rapid transit projects.

According to the budget documents, the provincial government has further earmarked Rs14.54 billion for works and services, including Rs3.90 billion for the maintenance and repair of roads, highways and bridges, and Rs 4.06 billion for the maintenance and repair of buildings and structures.