Sindh slices Rs24 billion off annual development program FY2019

KARACHI: Sindh government on Monday announced a Rs24 billion reduction in annual development program (ADP) to Rs228 billion for the current fiscal year of 2018/19, as the federal transfers are estimated to fall short of the target.

Chief Minister Murad Ali Shah of Sindh, presenting the budget for remaining nine months of the current fiscal year, said the ADP was previously estimated at Rs252 billion when the provincial government presented budget for the first quarter of the current fiscal year. But, it was reduced due to shortfall in transfers from the federal government.

Pakistan Peoples Party-led provincial government, in its previous stint, presented budget for the first quarter of FY2019 and left it for the next government to cover the remaining fiscal year.

Aggregate annual development budget outlay was previously estimated at Rs343.911 billion; of which, Rs252 billion was earmarked for provincial ADP and Rs30 billion for district ADP schemes. Total Rs46.895 billion was expected in foreign assistance and Rs15.017 billion from federal government under the public sector development program. The provincial ADP 2018/19 includes Rs202 billion for 2,226 ongoing schemes, and Rs50 billion was allocated for the new schemes.

“Our provincial development portfolio faces an allocation cut of Rs24 billion,” Chief Minister Shah said. “Now, the size of provincial ADP for 2018/19 is Rs228 billion; of which Rs5 billion will be diverted to district ADP, which will be enhanced from Rs30 billion to Rs35 billion and Rs21billion will be authorised for new ADP schemes.” Shah said the decision was taken as the provincial government was facing financial constraints in view of shortfall in federal transfers.

The chief minister said the ADP 2018/19 was initially prepared between March and April when the provincial government decided to provide development funds of Rs202 billion for ongoing schemes and authorised expenditures for the July-September quarter. A block provision of Rs50 billion was kept for new schemes to be decided by the next government. The block allocation has, however, been reduced and an allocation of Rs26 billion was kept for new schemes.

Shah said the provincial government focuses completion of ongoing schemes and so sufficient funds have been allocated for the purpose. “It is expected that 958 schemes of ADP 2018/19 where 100 percent of remaining funds have been allocated are likely to be completed by June.”

The provincial government allocated Rs102.48 billion for home department; of which Rs2 billion has already been disbursed. The chief minister said it is priority of the provincial government to introduce police reforms to make police efficient, community-friendly and effective.

Shah said the non-development budget of education was increased to Rs211 billion for the current fiscal year from Rs178.7 billion. The provincial government allocated Rs24.4 billion on development expenditures for ongoing schemes in the education sector, which would be utilised as per the priorities of the government, including provision of missing facilities. The last year’s allocation under the head amounted to Rs17.1 billion.

The chief minister said the allocation for non-development side of health sector is Rs102.224 billion and Rs12.50 billion on development side.

“Another high-priority area of our government is the provision of clean drinking water and sanitation facilities to the people,” he said. “We have also conceived a desalination plant on the sea having a capacity of around 300 MGD (million gallons per day) to produce drinking water. This project will be launched through public private partnership and will enhance KWSB’s (Karachi Water and Sewerage Board) water distribution network capacity.”

The chief minister said a detailed technical and financial feasibility study for desalination projects is being conducted. The study will comprehensively cover technical, legal and financial parameters for KWSB that will facilitate the development of desalination plants.

On Thar coal developments, the chief minister said the relentless efforts of Sindh government finally came to fruition. Sindh Engro Coal Mining reached the first seam of Thar coal at a depth of 141 meters on June 10. “The proof of concept for Thar coal will be demonstrated in December when the first electrons will flow from the first 330 MW Thar coal-based power plant of Engro Power gen Thar Ltd into the grid,” Shah added.