KARACHI: Sindh Chief Minister Murad Ali Shah outlined the province’s fiscal and development agenda on Saturday, highlighting the financial challenges faced by the provincial government due to federal shortfalls.
In a post-budget press conference, CM Shah criticized the federal government for withholding Rs105 billion in expected funds just one day before the budget presentation. He revealed that while Sindh has received Rs1,478.5 billion from the divisible pool, Rs422.3 billion remains outstanding, though he expressed hope for the disbursement of these funds by the end of June.
Despite operating under an IMF programme requiring strict fiscal discipline, the Sindh government has allocated Rs590 billion for development projects, with a total budget of Rs3.45 trillion — including Rs1 trillion for development and Rs2.15 trillion for current expenditures. This budget includes a 12% salary increase for lower-grade employees and 10% for higher-grade ones, with significant increases in funding for sectors like education and health.
CM Shah also outlined key initiatives, including Rs236 billion for infrastructure projects in Karachi, Rs600 billion for rural water and sanitation, and a focus on modernizing governance by digitizing land records through blockchain. Additionally, the government is providing subsidies to farmers and expanding educational and healthcare services.
On taxation, no new taxes were introduced, and some taxes were reduced, including the abolition of the entertainment tax and cuts in restaurant taxes. Shah expressed concern over cuts in federal funding for major projects, particularly the Sukkur-Hyderabad Motorway, which saw a reduction in funding from Rs30 billion to Rs15 billion. He also criticized the 18% tax on solar panels and warned that the PPP would not support the federal budget unless these issues were addressed.
Shah reaffirmed his commitment to improving the region’s development despite the financial challenges and called for equitable distribution of resources across the country.
