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Tuesday August 09, 2022

Sindh to present over Rs1.6tr budget today

The Rs. 250 billion development budget would receive allocations of Rs. 25 billion over the last year and the Rs. 32 billion district development budget is an increase of Rs. 12 billion over the last year

June 14, 2022
The Sindh assembly in Karachi. Photo: The News/File
The Sindh assembly in Karachi. Photo: The News/File

KARACHI: The Sindh government will present its over Rs. 1600 billion budget on Tuesday (today) including an over Rs. 250 billion development budget, Rs. 32 billion district development budget and a 15% increase in salaries of Sindh government employees, The News learnt.

The budget would see an enhancement in various allocations over the last year. The Rs. 250 billion development budget would receive allocations of Rs. 25 billion over the last year and the Rs. 32 billion district development budget is an increase of Rs. 12 billion over the last year, The News learnt.

According to sources in Sindh Government's Finance Department, an amalgamation of adhoc allowance with the basic salary could also be announced in today’s budget and like the federal government, the Sindh government will also increase the conveyance allowance of government employees.

The budget would be presented by Chief Minister Syed Murad Ali Shah, who also holds the portfolio of the Finance department.

With a six per cent increase, the health sector's budget would be around Rs19billion, while the education would see an allocation of Rs.28 billion which is a six per cent increase from that of the last year. The grant of 25 public sector universities could be increased up to 5 per cent. Rs. 2 billion will be announced for small traders for loans from Sindh Bank and Rs. 3 billion have been sanctioned for the subsidy on fertilizer, seeds and pesticides.

Over Rs. 18 billion would be allocated for Benazir Income Support Program and a big relief package for the Information Technology (IT) sector will also be announced. On Monday it was officially confirmed by Sindh Chief Minister Syed Murad Ali Shah that the Sindh government has proposed no increase in the allocations for the IT, transport, and agriculture sectors.

Sindh Chief Minister Shah has announced relief to the IT industry by reducing the rate of Sindh Sales Tax on IT, software business and call centres from 13 percent to 3 percent without the input tax credit.

However, large establishments prefer a standard rate with an input tax credit, they shall have the option of 13 percent with input tax credit facilities. The CM announced this while speaking at a seminar organized by Sindh Information Science and Technology department and Pakistan Software Export Board & P@ASHA.

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