KARACHI:Sindh Chief Minister Syed Murad Ali Shah, on the floor of the provincial assembly, presented a Rs1.713 trillion tax-free deficit budget for the year 2022-23.
According to the CM, the total receipts of the provincial government for next financial year would come to Rs1,679,734.8 against the expenditures of Rs1,713,583.1 billion which shows a deficit of Rs33.848 billion deficit.
Mr Shah in his budget speech told the house that overall revenue receipts would come to Rs1,679,734.8 billion, including Rs1.055 billion federal transfers, Rs374.5 billion provincial receipts (Rs167.5 billion provincial tax receipts excluding GST on services, Rs180 billion provincial sales tax on services and Rs27,000 million provincial non-tax receipts), Rs51,132.8 million current capital receipts, Rs105,567.5 million other transfers such as foreign project assistance, federal grants and foreign grants and Rs20,000 million carry over cash balance and public accounts of the province.
He added that the provincial tax collecting organizations would achieve their collection targets such as Sindh Revenue Board (SRB) will get Rs180 billion, Excise and Taxation Rs1.20 billion and Board of Revenue Rs30 billion.
Expenditures: The chief minister said that the current revenue expenditures for next financial year would be Rs1,199,445.4 million, current capital expenditures Rs54.48 billion, development portfolio Rs459.65 billion, including Rs332.165 billion provincial ADP, Rs30 billion district ADP, and Rs91.467 billion foreign assistance project (FAP) and Rs6.02 billion other federal grants.
According to the CM, the provincial government, during the 11 months (July to May) of outgoing financial year, had received Rs716 billion against a share of Rs732 billion which shows a shortfall of Rs16 billion.
Mr Shah added that his government during the said period received Rs45 billion in straight transfers and in OZT by receiving Rs18.9 billion against a share of Rs19.7 billion.
ADP: The provincial government has allocated Rs332.165 billion for Annual Development Program (ADP) 2022-23 while it was Rs222.5 billion during outgoing year. The district ADP size has been kept at Rs30 billion as was done during the current financial year.
The chief minister disclosed that 4,158 schemes, including 2,506 ongoing and 1,652 new ones had been given an allocation of Rs332.165 billion. He added that the ongoing 2,506 schemes had been given 76 per cent funds or Rs253.146 billion allocation and 1,652 new schemes had been allocated 24 per cent funds or Rs79.019 billion. The CM announced that 1,510 schemes would be completed in FY 2022-23.
Social Protection Package: The chief minister announced a Rs26.850 billion pro-poor, social protection and economic sustainability package.
Pay and Pension: The chief minister announced that the adhoc relief allowances 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.
He also announced adhoc relief allowance at the rate of 15 per cent of Basic Pay Scales to government servants from 1st July 2022. “Disparity allowance at the rate of 33 per cent of basic pay will be paid to civil servants in BPS-1 to 16 and at the rate of 30 per cent 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.
Mr Shah announced that all the provinces had not presented their budgets. “If they decide to increase the salaries of their employees more than the employees of the Sindh government, we would take decisions accordingly though the salaries and pensions of our employees are better than the employees of other provinces,” he said.
Pension: The CM said that the pensioners of Sindh government were already getting 22.5% more increase in net pension than pensioners of the federal government till February 2022. Therefore, he said an increase at the rate of 5% of net pension would be paid to the pensioners of the Sindh government from 1st July 2022.
According to Shah, after the announcement of 10% increase in net pension by the federal government in March 2022 and enhancement of the rate of increase to 15% from 1st July 2022, the pensioners of Sindh government would still be getting 12.5% more of net pension than the pensioners of federal government.
Constables upgraded: The chief minister also announced to upgrade the post of police constables from grade BS-5 to grade BS-7.
Relief in SST: The chief minister announced to exempt toll manufacturing services from SST. He added that 5% reduced SST rate for “recruiting agents” would continue for next two years – means up to 30th June, 2024. This relief is proposed for Pakistanis aspiring to work overseas.
Mr Shah said that the services provided by cable TV operators were levied at a reduced rate of 10%, the existing relief was proposed to be extended for a further period of two years ending on 30th June 2024.
The cable TV operators are proposed to be exempted, including the cable TV operators in rural areas under PEMRA License of “R” Category to be exempt from SST till 30th June, 2023. The rate of SST on commission charges received by food delivery channels (like foodpanda, cheetay logistics, etc.) from home chefs has been reduced from 13% to 8% for a period of two years ending on 30th June 2024. In all other cases, the services provided or rendered by commission agents shall continue to be liable to SST at 13%.
The existing exemption on health insurance services will continue further for a period of one year till 30th June, 2023. GIZ, a German development agency, facilitating development projects in Sindh, has also been granted conditional exemption on sales tax on services as indirect relief to the public.
Education: The CM said that his government had kept the education sector at its top priority by allocating Rs326.80 billion which forms more than 25 per cent of total budget outlay. He added that the health sector had also been given top priority by pitching budgetary allocation at Rs230.30 billion which forms more than 19 percent of total budget outlay.
Universities: The Sindh government has adopted a policy to either establish a full-fledged university or a campus of a recognized public university in at least seven districts – one each in Korangi, Karachi West, Keamari, Malir, Tando M. Khan, Tando Allah Yar, and Sujawal. Korangi will have a University of Technology and Skill, Vocational/ Industrial Development, while Karachi West and Keamari will have sub-campuses of this university. Malir will have a sub-campus of NED University. Likewise, Tando M. Khan and Tando Allah Yar will be given sub-campuses of IBA Karachi or Sukkur IBA and Sujawal will have a sub-campus of Mehran University.
Health: The total outlay of the health budget for the fiscal year 2022-23 is earmarked at Rs206.98 billion, covering primary, secondary and tertiary healthcare level services, preventive interventions as well as other communicable and non-communicable diseases. This year the health sector budget is 14% higher in comparison to Rs181.22 billion during FY 2021-22.
Law and Order: For the next financial year 2022-23, the total allocation for the home department, including Sindh police and jails, has been enhanced to Rs124.873 billion from Rs119.98 billion during the current financial year.
Irrigation and Agriculture: For the next financial year 2022-23, the budget for irrigation has been enhanced from Rs21.231 billion to Rs24.091 billion. Allocation for the agriculture and irrigation department in ADP 2022-23 is Rs36.2 billion.
KWSB: The Water and Sewerage sector has been given Rs224.675 billion in the financial year 2022-23. The two major schemes of the city will be executed during the coming financial year. They are: Re-settlement of affectees of Gujjar, Mehmoodabad and Orangi Nallahs for Rs9.423 billion.
Greater Karachi Bulk Water Scheme K-IV Augmentation Works for Rs 511.724 billion.
SSWMB: The Sindh government has increased its budget from Rs8.00 billion to Rs12.00 billion for the next financial year 2022-23. The government intends to further expand operations of Sindh Solid Waste Management Board to other districts in the next financial year which include Hyderabad, Qasimabad, Kotri, Sukkur City and Rohri.
Procurement process has already been completed and operations shall start later this year.
Social Protection Dept: For the next financial year 2022-23, budget allocation for the Social Protection Department has been earmarked at Rs15.435 billion. In order to improve the wellbeing and welfare of senior citizens, orphans, and the poor, several social programs are being initiated and financed from the next financial year 2022-23.
Other allocations are as: Pro-Poor Social Protection and Economic sustainability Package of Rs26.85 billion
Agriculture: A Rs3000 million subsidy for seed, fertilizer and pesticides to farmers.
Labour: Benazir Women Agricultural Workers Programme launched for Rs500 million.
Empowerment dept: A fund of Rs250 million for differently abled persons launched.
Grant to Universities: Rs1200 million allocated for scholarship to students/Position holders.
Grant to ‘versities: Rs2000 million allocated for Registration, Enrollment and Annual Exam Fees of Classes IX to XII.
Information Technology: Rs500 million for development of digital platform for Health, Agriculture and Education
Investment: Rs1000 million Equity Investment in NED Technology Park, through Sindh Enterprise Development Fund through SEDF
Investment: Rs100 million Digital Skills Training Program for Youth in collaboration with global tech players through SEDF
Investment: Rs100 million Establishment of Sector Specific Incubators and Accelerators through SEDF.
Housing: Rs2000 million for establishment of Housing Units for Poors in Sindh
Livestock and Fisheries: Rs500 million for Provision of Livestock to Poor Households
Livestock and Fisheries: Rs500 million Sindh Livestock and Fisheries Enterprize Development
Social Welfare: Rs100 million revamping / establishment of existing orphanage.
Social Welfare: Rs100 million revamping of Old-Age Homes in Sindh.
Social Protection: Rs15,000 million Sindh Peoples Support Program.