Sindh cuts development spending 17 percent for fiscal year 2019/20

By Shahnawaz Akhter
June 15, 2019

KARACHI: Sindh government on Friday announced an allocation of Rs208 billion under Annual Development Plan (ADP) for fiscal year 2019/2020, which is 17 percent lower than Rs252 billion earmarked for the outgoing fiscal year.

Advertisement

Sindh Chief Minister Syed Murad Ali Shah, in the budget speech for fiscal year 2019/20, said the total development portfolio for next financial year is Rs283.5 billion, which includes Rs208 billion on account of provincial and Rs20 billion as district ADP.

The chief minister said during the outgoing year, after assuming office in August 2018, the government made adjustments in the Budget 2018-19 by reducing the size of the provincial ADP from Rs252 billion to Rs223 billion in the background of fiscal tightening and low transfers in the first quarter of the year.

“The uncertainties impacted the development financing in multiple ways. Other than reduction in the overall kitty, it impacted timeliness as well,” he added.

Hence, Finance Department was able to release only Rs130 billion (till June 3, 2019) against Provincial & District ADP. As against this total release, the total expenditure expected till end June 2019 is approximately Rs.110 billion.

Shah admitted that the spending was even lower than releases and it was on account of delay and uncertainty, which remained throughout the year. “Despite this situation, the provincial departments are expected to complete 453 schemes by June 2019,” he said.

Shah said the allocation for school education had been increased in non-development budget from Rs170.832 in year 2018-2019 billion to Rs178.618 billion in next financial year 2019-20. “Whereas on development side, an amount of Rs.15.15 billion has been allocated in ADP 2019-2020,” he added.

The school education portfolio has been allocated Rs.15.15 billion for 279 schemes for 188 on-going and 91 new schemes.

The chief minister said that the health sector had been provided the same amount for ADP 2019-2020, as the sector was being provided similar allocation as the outgoing year at Rs13.50 billion.

The current revenue expenditure of Health Department excluding medical education has been significantly increased by 19 percent from Rs96.8 billion in CFY 2018-2019 to Rs114.4 billion in fiscal year 2019-2020, he added.

The chief minister said the total allocation for law and order had been increased in non-development budget from Rs100.483 billion in 2018-19 billion to Rs109.788 billion in the next financial year.

For Social Protection and Poverty Reduction program an amount of Rs12.3 billion has been allocated in the development budget of 2019-20.

Overall releases and the expenditures remained low due to recent fiscal crunch. An amount of Rs15.90 billion was released and Rs7.87 billion could be spent by June 2019. In 2019-20 ADP, the government has allocated Rs35.90 billion, slightly lower than last year but it constitutes a sizeable share of ADP.

The allocation for energy sector has been increased in non-development budget from Rs23.883 billion in year 2018-19 to Rs24.92 billion in next financial year 2019-2020. For the coming year, an allocation of Rs590 million has been earmarked for Electrification.

The allocation for Irrigation Sector is increased in non-development budget from Rs.22.744 billion in year 2018-19 to Rs.23.070 billion in next financial year 2019-20. Irrigation sector is being allocated Rs.22 billion in the ADP 2019-20 for 210.0 on-going schemes and 63 new schemes.

For the coming FY, the provincial government has earmarked Rs.36.0 billion under ADP 2019-20; in addition it has signed big investments worth US$ 1.5 billion (Rs.226 billion) over a period of five years with International Development Partners for high priority sectors;

The allocation for Livestock and Fisheries in the ADP 2019/2020 is Rs2.0 billion. It is expected that the Department would complete 20 schemes through this financing.

Advertisement