Balochistan budget

The Balochistan government finally presented its budget this week, with the proposed expenditure of Rs613 billion, and a projected deficit of almost Rs73 billion. However, while the total outlay has increased since last year, the projected deficit is actually about Rs11 billion less.

Despite the already significant delays in presenting its economic plans for the upcoming fiscal year due to the cabinet’s inability to agree on spending plans, reports suggest that the final budget was not ready until a matter of hours before it was presented, and even the budget session began about three hours behind schedule. The stalemate was reportedly because disproportionate amounts of development funds were being allocated to the CM Bizenjo’s allies. Making the situation even more difficult was the fact that overall PSDP actually appears to have decreased. It was also interesting that the CM office denied these reports by claiming that the delay was because Bizenjo was busy with a BAP council session, and not because of any disagreements over the budget. This appears to be an admission that Bizenjo prioritises party politics over his public responsibilities, which is concerning, to say the least. But at least the session was not marred by the kind of protests and violence we saw last year.

The budget also includes Rs191 billion for the PSDP while provincial outlay on development projects will be bolstered by at least Rs28.3 billion in federal funding and Rs14.6 billion in foreign assistance. The provincial government also said it would create at least 2,851 new jobs for fresh graduates. Overall, Rs133 billion will be set aside for 3,367 ongoing development projects and another Rs59 billion for some 3,470 new ones. Salaries for government employees have also been increased by 15%, while the minimum wage has been raised to Rs25,000 per month. Other major spending plans include a total Rs43 billion allocation for health, Rs70 billion for education, and Rs56 billion for law and order. However, the bulk of these amounts is dedicated to non-development expenditures such as salaries, maintenance, and other operating costs.