Sindh to unveil Rs688b budget

[Shabaz Sharif]

KARACHI: The Sindh government will present its budget worth Rs688 billion for the year 2014-2015 today (Friday).

Officials in the finance department said that the budget deficit is likely to reach around Rs10 billion and the government is expected to increase salaries and pensions of government employees by 10 to 15 per cent.

In the upcoming budget, the government has decreased allocation for development schemes. The development schemes will get Rs215 billion, which includes Rs168 billion for provincial annual development funds. A total of Rs47 billion will be received from the federal government. This allocation is around Rs14 billion less than the total development expenditure of 2013-2014, which was Rs229 billion. Non-development expenditure may reach up to Rs475 billion; Rs89 billion more than the current year.

According to sources privy to the development, the chief minister may announce 15,000 additional jobs in the police, education and health departments. “Around Rs6 billion are being allocated for new jobs,” said an official, adding that around 3,000 schemes have been planned, out of which 63 per cent are ongoing. In the education sector, Rs122 billion have been estimated for non-development expenditure.

Given the worsening law and order, the government has allocated Rs55 billion to the department, Rs46 million will be given to the police and Rs9 billion to the Rangers and Frontier Constabulary. For newly established universities, Rs5 billion have been allocated as special grant. The districts have been allocated Rs12 billion, while Rs1 billion each have been earmarked for Lyari Expressway, Karachi Circular Railway, K-4 and S-III project. The Karachi Metropolitan Corporation and other district municipal corporations will be given Rs6 billion, while Rs5 billion are likely to be allocated to the Karachi Water and Sewerage Board to clear the outstanding dues it owes to K-Electric and other utility companies.

Revenues

The Sindh government has estimated to get Rs460 billion from the federal government as total revenue receipt from the National Finance Commission Award, Rs10 billion from the defunct Octroi tax and Rs15 billion as federal grants. Meanwhile, the provincial government has estimated to acquire Rs150 billion from its own taxes and Rs20 billion from its various investments.

Published in The Express Tribune, June 13th, 2014.

 

[mughal arslan shah mirza]

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[KingMamba]

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[mughal arslan shah mirza]

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[Shabaz Sharif]

Sindh budget blighted by deficit

June 14, 2014
RECORDER REPORT
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The Sindh government on Friday unveiled a Rs 686.179 billion budget for the fiscal year 2014-15 (FY15) with no new taxes but a deficit of Rs 14 billion. Chief Minister Sindh Syed Qaim Ali Shah presented second budget of his government's second term during Sindh Assembly session, with Speaker Agha Siraj Khan Durrani in chair. The proposed budget is around 24 percent or Rs 136.025 billion higher than the outgoing fiscal year's revised budget of Rs 550.154 billion.

While, the new budget is some 11 percent or Rs 69 billion higher than the original budget of outgoing fiscal year. Total revenue receipts of the province are estimated at Rs 672.118 billion, which are about 22 percent or Rs 118.402 billion higher than the overall revised revenue estimates of Rs 533.716 billion of the outgoing fiscal year.

Overall expenditures of the province have been estimated at Rs 686.179 billion for FY15 against the total estimated receipts of Rs 672.118 billion, depicting a budget deficit of Rs 14.061 billion. The revenue receipts are estimated at Rs 599.32 billion for the year 2015, as compared of Rs 488.736 billion of revised budget of FY14, depicting an increase of Rs 110.5 billion. Federal transfers are estimated at Rs 474.20 billion for the next fiscal year as against Rs 388.657 billion of revised receipts for outgoing fiscal year.

Under the revenue assignment, Sindh government is expected to receive Rs 48 billion higher during next fiscal year as compared to outgoing fiscal year. Estimated Revenue Receipts from Federal Divisible Pool for FY15 are estimated at Rs 381.383 billion, which is 24 percent higher than the revised estimates of outgoing fiscal year. Receipts under Straight Transfers are estimated at Rs 82.62 billion, Rs 10 billion higher than the revised estimates of FY14. Provincial own receipts are estimated at Rs 125.06 billion. The provincial collection of Sales Tax on Services is estimated at Rs 49 billion, provincial tax receipts (excluding sales tax) at Rs 58 billion, and provincial non-tax receipts at Rs 18 billion for the next fiscal year.

Under the head of current capital receipts, the Sindh government has estimated Rs 18.438 billion including Rs 1.49 billion of local repayments, Rs 13 billion of World Bank, Rs 2.098 billion of European Commission Grant and Rs 1.825 billion of Sindh Global Partnership for Education. Other receipts and public account of the province inflows expected to be Rs 47.358 and Rs 2 billion, respectively for the next fiscal year. On expenditure side, some Rs 436.09 billion has been allocated for current revenue expenditure for FY15, as compared to Rs 368.403 billion for the revised budget of current fiscal year. In addition, current capital expenditures are estimated at Rs 34.7 billion for the next fiscal year, which shows Rs 29.737 billion increase as compared to outgoing fiscal year.

The Sindh Government has estimated a total development expenditure of Rs 215.358 billion including Rs 168 billion of the provincial Annual Development Programme (excluding Foreign Project Assistance {FAP} and Flood Emergency Reconstruction Project (FERP) and Rs 24.884 billion worth foreign project assistance including FAP and FERP, Rs 14.47 billion of federal grant and Rs 8 billion on account of block allocation for project in Sindh.

LAW & ORDER The Sindh financial plan for fiscal year 2014-15 proposes an increase of 20 percent for law enforcing departments to Rs 54.08 billion from the outgoing year's Rs 44.86 billion. "During the outgoing year, 12,000 new vacancies were created in police, including induction of 2000 retired army personnel, which helped in improving quality of our force," Qaim Ali Shah said.

An outside budget allocation of Rs 6.238 billion, including Rs 5 billion only for the police had to be made to provide funds for procurement of vehicles, arms and ammunition, bullet-proof jackets and helmets etc, to fully equip the law enforcers to meet the continuing operation in Karachi, he told the house. He claimed that the government's concerted efforts and financial support helped the law enforcers bring down target killings by 65 percent, murders by 35 percent and kidnapping for ransom by 12 percent.

The government has earmarked an especial allocation of Rs 4.65 billion for the operational requirements of police in the budget. "This allocation will be used for new recruitments and procurement of arms, vehicles and other equipment for the fore," he said.

COMPUTERISATION OF ARMS LICENSE The budget proposes an initial allocation of Rs 254 million for computerisation of all arms licenses issued in the province, he said, adding that the earmarked amount will help check and control illegal arms.

SPECIAL DEVELOPMENT PACKAGES An amount of Rs 13.23 billion has been earmarked for Special Development Packages for various districts including Hyderabad, Shaheed Benazirabad, Larkana, Karachi (all districts), Sukkur, Dadu, Sanghar, Mirpurkhas, Tharparkar, Jacobabad, Kashmore, Thatta and Sujawal.

Chief Minister said: "This year, Tharparkar district was hit by drought causing deaths and misery to the people; therefore the government has decided to allocate special package of Rs 500 million for Thar Development Plan and Rs 400 million as Tharparkar package."

Keeping in view the health needs of Tharparkar and other remote regions of Sindh, he said the government has proposed a project of 12-bed Mobile Health Unit which has been included in ADP with an allocation of Rs 1200 million. "Rs 500 million has been allocated for developing a Master Plan for Larkana to integrate the development initiatives taken through Larkana Development Package," he added.

INDUSTRIES He said the government has allocated an allocation of Rs 2 billion for revival of sick industrial units.

HOUSING FOR POOR He said the government has proposed construction of 6500 houses for the poorest segment of the society in all districts of Sindh. "In this budget we are keeping an allocation of Rs 1 billion for constructing 12,000 more houses," he said. He said the government will initiate project of Shaheed Benazir Bhutto Township to develop 50,000 plots to be distributed among the poor in 27 locations across the province. The project costs Rs 5 billion.

AGRICULTURE The budget proposes an allocation Rs 4.4 billion for agriculture sector development and Rs 5.18 billion for non-development expenditure of the sector. In addition, agriculture sector will get Rs 2.74 billion through World Bank assisted "Sindh Agriculture Growth Project," he added. He said the major schemes will be initiated for sustainable agriculture development and conservation of 800 watercourses. "We will support small farmers by providing them subsidy on purchase of 7,350 wheel type tractors, 1250 agriculture implements, 70 solar pumps and 715 tube wells"

The non-salary budget for Agriculture has been increased from Rs 763.887 million during outgoing fiscal year to Rs 861.645 million in the next financial year which will facilitate the department in providing improved services to farmers," he said.

LIVESTOCK & FISHERIES The budget earmarks Rs 2.07 billion for development of livestock and fisheries sectors. The government proposes 26 percent increase in budget amount for livestock and agriculture sectors to purchase of drugs and animal vaccines, he said.

RURAL SUPPORT PROGRAM FOR POVERTY REDUCTION The government proposes Rs 1.3 billion for Rural Support Programme to help reduce poverty and improve living standard of the poor and marginalized communities in the province.

"The major features of the programme are income generating grants, vocational training, health insurance, reactivation of abandoned primary schools and post-flood village rehabilitation. So far, 1467 houses have been constructed and distributed amongst flood affectees in the districts of Kashmore and Shikarpur," Qaim Ali Shah said.

An amount of Rs 200 million has been earmarked in ADP 2014-15 for Community Development Project to support health, education, water and sanitation, skill development, woman empowerment and legal aid services, he added.

MINORITIES AFFAIRS The government has allocated Rs 567.81 million in ADP 2014-15 for construction and renovation of Mandirs [temples] in Karachi, Ghotki, Thatta, Sukkur, Matiari, Shikarpur, Sanghar, Tharparkar, Larkana, Umerkot and KhairpurMirs districts, he said.

PEOPLES' PRIMARY HEALTHCARE INITIATIVE The government has earmarked Rs 2.379 billion for The People's Primary Healthcare Initiative Programme. "Out of this allocation, Rs 489.30 million is for 458 Mother and Child Health Care Centers and Rs 1.89 billion for management of primary health facilities," Chief Minister said.

Copyright Business Recorder, 2014