No new tax imposed as KMC approves budget of Rs26 billion

The Karachi Metropolitan Corporation (KMC) has approved a budget of Rs25,982.414 million for the next financial year with a surplus of Rs11.947 million, as the expenditures are

estimated at Rs25,970.467 million.

Karachi Administrator Laeeq Ahmed on Tuesday approved the budget using the powers of the city council under the notification of the Sindh government. No new tax has been imposed. The administrator said that for the next financial year, priority was given to those development schemes which were in the interest of the public. “Non-development schemes are kept to a minimum; new and ongoing projects of roads, gardens, playgrounds and sports complexes have been added to improve the infrastructure of Karachi.”

Ahmed said that to facilitate the citizens under the Annual Development Programme (ADP), 200 schemes started during the last financial year would be expedited and completed next year.

“The KMC budget for the next financial year will be balanced, and will lead to the development and improvement of the city, and through it the process of improving the infrastructure in the city will continue.”

He said focus would be on achieving the projected revenue targets during 2021-22 and keeping non-development expenditure to a minimum while concentrating on development works. Ahmed said that with the onset of the monsoon season, priority would be given to the schemes which are expected to provide relief to the citizens this season, while the process of clearing storm water drains is under way and would also continue in the future.

“Funds have been allocated to different departments according to their responsibilities, most of which are allocated to the Department of Medical and Health to provide better and quality treatment to the citizens.”

The administrator said that to provide recreational facilities, all important places of Karachi, including the zoo, the Hill Park, the Kidney Hill Park and Bagh Ibne Qasim, would be improved, while a total of 45 KMC parks would be developed, and the fire brigade would also be equipped with the necessary equipment.

The largest source of revenue in the KMC budget is the Octroi Zilla Tax (OZT) share and the grant-in-aid of Rs15.07 billion from the provincial government, while the district ADP is expected to collect over Rs5 billion.

A total of Rs2,451.803 million has been allocated for development works besides the allocation of funds for the district ADP. The estimated collection from the KMC’s revenue departments is Rs1.7 billion, and the estimated collection from the Municipal Utility & Conservancy Tax (MUCT) Department is Rs1 billion. The outstanding dues of Rs1.85 billion on K-Electric and Rs100 million on the Karachi Port Trust are shown in the budget.

Similarly, in terms of expected revenue, Rs1.53 billion from the World Bank-funded Competitive & Livable City of Karachi (CLICK) Project, Rs184.7 million from culture,

sports and recreation, and Rs261.5 million from transport and communication are shown.

Others include Rs222.9 million from veterinary services, Rs201 million from municipal services, Rs100 million in terms of income transfers from the Sindh Building Control Authority, Rs95 million from the engineering department, Rs81.4 million from medical and health services, Rs35.78 million from parks and horticulture, Rs15.62 million from enterprise and investment promotion, Rs1 million from the secretariat and Rs0.1 million from information technology.

The largest expenditure of over Rs5 billion has been allocated for the Department of Medical and Health Services, while the expenditure under the district ADP is estimated at Rs5 billion, and Rs4.9 billion is shown as details for debit servicing, transferring funds for pension and other miscellaneous expenses.

Likewise, Rs3.38 billion was allocated for municipal, Rs1.53 billion for CLICK and Rs1.263 million for revenue departments, including land, estate, OZT enforcement, Katchi Abadis, PD Orangi and charged parking.

Others include Rs1.19 billion for engineering; Rs1.03 billion for parks and horticulture; Rs852 million for the secretariat; Rs843.3 million for culture, sports and recreation; Rs345.4 million for finance, accounts and MUCT, Rs164.926 million for the law department; Rs88.6 million for enterprise and investment promotion; Rs71.2 million for transport and communication, and Rs62 million for the IT department.

The development projects for which funds have been allocated include Rs800 million for constructing a road from Machhli Chowk to Kanupp Road, Rs300 million for rehabilitating and developing Allama Shabbir Ahmed Usmani Road, Rs120 million for clearing drains, Rs100 million for repairing extension joints of bridges, Rs100 million for supplying and installing drainage and sewerage lines at the Zulfiqarabad Oil Tankers Terminal, Rs81 million for renovating and repairing the hippodrome, Rs80 million for improving the fish aquarium, and Rs80 million for developing and repairing roads, footpaths and bridges.

Others include Rs70 million for the Shahabuddin Market near the Empress Market, Rs68 million for buying ventilators for KMC hospitals, Rs60 million for installing and repairing street lights on Mai Kolachi Road, Rs50 million for roadside tree planting, Rs50 million for buying animals and birds for the Karachi Zoo and the Safari Park, Rs49 million for buying medical, electrical and other equipment for KMC hospitals, Rs40 million for developing and improving the zoo and the Safari Park, and Rs15 million for constructing a badminton park in the Aga Khan Park.

Metropolitan Commissioner Danish Saeed, Finance Adviser Ghulam Murtaza Bhutto, Senior Director Coordination Khalid Khan, Senior Director Finance & Accounts Rashid Nizam, Director Budget Nasir Mahmood, Director Welfare Mahmood Baig, Director Planning Afaq Mirza and other officials were also present on the occasion.