KARACHI: Sindh Chief Minister Syed Murad Ali Shah presented a Rs1,144.448 billion tax-free budget with a Rs.343.90 billion development outlay for the next financial year and requested the house to authorize expenditure for only three months from 1stJuly to 30thSeptember 2018.
The chief minister requested the house to authorize expenditure for only three months from 1stJuly to 30thSeptember 2018.
Murad Shah said we are not proposing any new taxes in the budget. Budget 2018-19 is a tax-free, welfare oriented and a progressive budget. I will not be introducing a Finance Bill for 2018-19.
The chief minister said that almost 75 percent of Sindh government’s revenue receipts were dependent on Federal Transfers, consisting of shares from Federal divisible pool, Straight Transfers and the Grant to offset losses in lieu of abolition of OZT. “The major chunk comes from divisible pool taxes, which is distributed to the provinces under NFC formula,” he said.
He said that the decision on 9th NFC award was long awaited. “The delay is causing huge economic loss to the provinces, especially the province of Sindh because its revenue collection is much higher as compared to other provinces,” he said and urged the federal government to announce NFC award soon so that further loss to our province could be avoided.
He said that only one tax has been devolved to provinces, which is sales tax on services. He said the collection of sales tax on services when it was with Federal Government, stood at Rs.16.00 billion in 2010-1. After devolution the collection figure is Rs.78.66 billion in 2016-17, showing a marked increase in the collection.”
He said that during 2017-18, Rs.274.00 billion was allocated in the budget estimates for development which has been revised to Rs.226.00 billion, including Rs.28.00 billion for District ADP schemes. The departments will complete 714 schemes in the 2017-18 as compared to 536 schemes completed in last financial year 2016-17.