Sindh presents Rs1.24tr ‘tax-free’ annual budget

By News Desk

KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented a Rs1.24 trillion provincial budget for the financial year 2020-21, which followed the federal budget’s footsteps by introducing no new taxes.

The budget session, conducted by Sindh Assembly Speaker Agha Siraj Durrani, was rowdy as opposition parties attempted to drown out Shah’s speech with, chanting “lies, lies” throughout the session. Despite pausing several times, the Chief Minister powered through, and said the total outlay of budget 2020-21 was Rs1.24 trillion with Rs18.38 billion deficit. He added that non-development expenditure was estimated at Rs968.99 billion, while the development expenditure was estimated at Rs232.94 billion and the capital expenditure was estimated at Rs39.19 billion. According to Shah, total receipts were estimated to be Rs1.22 trillion, federal receipts Rs760.30 billion (65 per cent), provincial receipts Rs313.39 billion (26.8 per cent), capital receipts Rs25 billion (2.1 per cent) and other receipts (FPA and PSDP) Rs69.05 billion (5.9 per cent).

The Chief Minister told the House that no new tax had been introduced in the budget and the increase in non-development expenditure was restricted to only seven per cent.

Shah further explained that the increase in non-development expenditure was mainly due to provision of coronavirus-related pro-poor social protection and economic sustainability package of Rs34.2 billion and a rise of Rs19 billion in the health sector and Rs22.9 billion in the education sector.

He added that austerity measures from the non-development budget have created space for the development budget. He elaborated that the overall federal receipts were reduced by Rs71.72 billion, which constituted nine per cent of the current financial year 2019 20. The overall provincial receipts were estimated at Rs313.4 billion, which was nine per cent higher than current financial year, he added.

Despite a pandemic challenge, economic slowdown and sluggish revenue targets, the Sindh government introduced coronavirus-related pro-poor social protection and economic sustainability initiatives worth Rs34.2 billion, he said.

The Chief Minister announced that Rs3 billion was earmarked for poverty alleviation programme for small businesses in urban areas; Rs2 billion proposed for poverty alleviation programme for small farmers in rural areas; Rs20 billion estimated for cash transfer under the Sindh Peoples Support Programme.

The agriculture department budget had been increased by 40 per cent to Rs14.84 billion mainly due to subsidy package for small farmers and locust control, he said, adding the Sindh government had allocated Rs440 million for locust control.

The health department budget had been raised by 16.1 per cent to Rs139.18 billion to counter Covid-19 pandemic and infectious diseases. Health Risk Allowance at the rate of one basic pay will be provided to all health personnel including postgraduate and house job officers engaged in Covid-19 cases with effect from March 2020, Shah said.

The Chief Minister said the education budget was augmented by 10.2 per cent to Rs243.14 billion for quality education and to cope up with the post pandemic academic challenges. He said the grant to local councils had been increased by five per cent to Rs78 billion in the next budget.

Shah further said 2,500 people will be trained in various employable trades through private and public sector. In his speech, the Chief Minister said he was honoured to present the budget for the eighth time. “This year the budget is being presented under quite difficult circumstances,” he said, adding the country was battling the pandemic and locust attacks at the same time.

Earlier, Shah presided over a cabinet session at the CM House on Wednesday to review budget recommendations. In the meeting the cabinet gave approval for raising the salaries of government employees by 10 per cent according to the provincial government spokesperson.