Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented a Rs 1,241.13 billion budget with a deficit of Rs 18.38 billion for next financial year, 2020-21.
The budget session began under Speaker Assembly Agha Siraj Durrani, where Shah, who also holds the portfolio for provincial finance minister, presented the outlay.
In his budget speech, the Chief Minister said that the total outlay of budget 2020-21 was Rs 1,241.13 billion with Rs 18.38 billion deficit. He added that the Non-development Expenditure was estimated at Rs 968.99 billion, the Development Expenditure at Rs 232.94 billion and the Capital Expenditure was estimated at 39.19 billion.
According to the CM, the total Receipts are estimated at Rs 1,222.75 billion, including Federal Receipts at Rs 760.30 billion (65 percent), Provincial Receipts at Rs 313-39 billion (26.8 percent), Capital Receipts at Rs 25 billion (2.1 percent) and other Receipts (FPA & PSDP) at Rs 69.05 billion (5.9 percent).
Murad Ali Shah said that that no new tax has been introduced in the Budget 2020-21 and the increase in non-development expenditure is restricted to seven percent only.
Shah said that the increase in non-development expenditure was mainly due to provision of `COVID-related pro-poor Social Protection & Economic Sustainability package of Rs 34.2 billion and rise of Rs 19 billion in Health Sector and Rs 22.9 billion in Education Sector approximately from current year’s budget allocations. He added that the austerity measures from non-development budget created space for development budget.
According to Mr Shah, this year, overall Federal Receipts are reduced by Rs 71.72 billion which constituted nine percent as compared to the current financial year 2019-20.”The overall Provincial Receipts are estimated at Rs 313-4 billion which is nine percent higher than current financial year,” he said.
In spite of pandemic challenge, economic slowdown and sluggish revenue targets, Shah said the Sindh government has introduced a “COVID Related Pro-poor Social Protection & Economic Sustainability Initiatives” of Rs 34.2 billion in budget 2020-21, with key sectors are social welfare, agriculture, industries and investment.
The CM said, “Rs 3 billion is earmarked for Poverty Alleviation Program for Small Business in Urban Areas, Rs 2 billion is proposed for Poverty Alleviation Program for Small Formers/Communities in Rural Areas, Rs 20 billion is estimated for Cash Transfer under `Sindh Peoples Support Program.’
Rs 1 billion is allocated as a `Subsidy for Quality Rice Seeds’ to Small Farmers, Rs 1 billion for `Subsidy for Fertilizers’ to Small Farmers, Rs 1 billion is allocated as a “Subsidy for Pesticides” to Small Farmers, Rs 5 billion is allocated for `Soft Loans Program’ for small and medium enterprises through Sindh Bank, Rs 700 million is proposed for Support of IT Technology Interventions & Innovative Solutions and Rs 500 million is earmarked for supporting technology based startups – Incubators & Accelerators
According to Mr Shah, the Agriculture Department budget is increased by 40percent to Rs 14.84 billion mainly due to subsidy package for Small Farmers and Locust Control. “The Sindh government has allocated Rs 440 million for Locust control,” Mr Shah said.
The Health Department Budget is raised by 16.1 percent to Rs 139.18 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.
The chief minister said that the Education Departments budget is augmented by 10.2 percent to Rs 243.14 billion for quality education and to cope up the post Pandemic academic challenges. He said that the Grants to Local Councils had been increased by five percent to Rs 78 billion in the next budget.
The chief minister said that the actual size of the ADP was Rs 170 billion, which includes Rs 155 billion provincial and Rs 15 billion district ADP.
The Federal Funded Projects are estimated at Rs 8.30 billion and Foreign Funded Projects are estimated at 54.64 billion. The PPP Projects are estimated at Rs 117 billion for Infrastructure Development.
He said 2,500 youth will be trained in various employable trades through private and public sector. Training opportunities to 70,000 youth reference to COVID-19 scenario will be provided.
