Karachi, June 14, 2024 – Sindh Chief Minister Syed Murad Ali Shah presented the province’s budget for the fiscal year 2024-25, amounting to Rs 3.056.27 trillion.
This budget, unveiled on the floor of the Provincial Assembly of Sindh on Friday, marks a 34 percent increase from the previous year’s estimates of Rs 2,282.58 billion for 2023-24.
Chief Minister Shah, who also serves as the Sindh Finance Minister, described the budget as balanced and centered on the rehabilitation of flood-affected individuals and providing social protection for the underprivileged. “This budget is a testament to our commitment to supporting the people of Sindh through enhanced development and welfare initiatives,” he stated.
Revenue and Expenditure Breakdown
The total projected revenue for Sindh stands at Rs 3 trillion, with federal transfers contributing 62 percent, provincial receipts 22 percent, and the remainder through current capital receipts (Rs 22 billion), foreign project assistance (Rs 334 billion), other federal grants (Rs 77 billion), foreign grants (Rs 6 billion), and a carryover cash balance of Rs 55 billion.
Provincial receipts, totaling Rs 662 billion, include Sales Tax on Services (Rs 350 billion), tax excluding GST (Rs 269 billion), and non-tax receipts (Rs 42.9 billion). These funds are allocated strategically: 63 percent (Rs 1.9 trillion) for Current Revenue, 6 percent (Rs 184 billion) for Current Capital, and 31 percent (Rs 959 billion) for Development Expenditure.
Salary and Pension Increases
The budget proposes substantial salary increases for government employees: a 30 percent hike for employees in BPS-1 to BPS-6, 25 percent for those in BPS-7 to BPS-16, and 22 percent for employees in BPS-17 and above. Additionally, a 15 percent increase in pensions for retired employees is included.
“These increases aim to provide significant relief to our employees, especially those in the non-gazetted category, in light of rising inflation,” Shah said. The minimum wage for labor is proposed to be Rs 37,000 for the fiscal year 2024-25, aligning with federal government directives.
Allocation to Key Sectors
The Sindh provincial budget prioritizes investment in social services and infrastructure. Education receives the largest allocation with Rs 519 billion, of which Rs 454 billion is for current revenue expenditure. Healthcare is allocated Rs 300 billion, and local government receives Rs 329 billion.
Key infrastructure sectors also see substantial allocations: Rs 58 billion for agriculture, Rs 77 billion for energy, Rs 94 billion for irrigation, Rs 86 billion for Works & Services, and Rs 30 billion for Planning and Development.
Social Protection and Development Initiatives
A notable Rs 34.9 billion is allocated for pro-poor initiatives, directly aiding vulnerable populations. The budget also includes Rs 116 billion in subsidies to alleviate financial burdens on citizens. Housing schemes receive a dedicated Rs 25 billion to promote access to secure shelter.
Several new initiatives focus on long-term development. Rs 8 billion is allocated to support 12 million farmers under the Hari Card program, bolstering Sindh’s agricultural sector. A Rs 5 billion allocation is dedicated to building a complex offering education, rehabilitation, training, and other facilities in Korangi along the Malir Expressway.
The budget also includes a Rs 5 billion allocation for distributing solar home systems, promoting clean energy access, and another Rs 5 billion for constructing a new canal to provide water to Karachi under the Hub project.
Focus on Human Capital
The budget underscores investment in human capital with significant grants for education and healthcare. Major grants total Rs 190 billion, with Rs 35 billion specifically for universities across Sindh. These grants aim to support educational institutions and improve access to quality healthcare services.
Notably, Rs 292 million are proposed as grants for various Press Clubs and deserving journalists, Rs 66 million for the Sindh Information Commission, and Rs 50 million for the Sindh Protection of Journalists and Other Media Practitioners Act 2021..
Cultural and Creative Industries
An innovative Rs 1 billion has been set aside for the production of dramas, films, and documentaries, aiming to revive the showbiz industry in Sindh and attract new talent. This initiative highlights the government’s commitment to nurturing cultural and creative industries in the province.
Chief Minister Syed Murad Ali Shah concluded his budget speech by emphasizing the province’s untapped resources and potential. “The key to utilization is unity and collective effort towards a common goal,” he asserted. The 2024-25 budget reflects Sindh’s commitment to development, social protection, and economic recovery, ensuring long-term growth and well-being for its citizens.