Economy

Sindh Govt. presents Rs 1.218 trillion budget for next fiscal year

Karachi, June 14, 2019: The Sindh Government on Friday presented a budget estimated Rs 1.218 trillion for the next fiscal year 2019-20 (FY20).

Syed Murad Ali Shah chief Minister Sindh, who is also holding a portfolio of Minister Financed presented the budget in the Sindh Assembly on Friday and said that the total receipts of the province for the financial year 2019-20 are estimated at Rs.1.218 trillion against an estimated expenditure of Rs.1.218 trillion.

As Federal Transfers, the province is expected to receive Rs.835.375 billion. Receipts from Federal Government will account for 74% of the total receipts.

He also highlighted that Federal Government has failed to achieve its target in yesteryears.

“We have adapted the figures communicated to us by the Federal Government. We strongly apprehend that Federal Government will not be able achieve its target unless drastic structural changes are introduced”. he added.

He mentioned that Failure to achieve its targets will create financial problems for the Provincial Government during the next financial year 2019-20.

He informed that Sindh receipts are growing steadily and provincial revenue targets are increased from 243.082 billion to Rs.355.4 billion for next financial year.

On the current revenue side, the expenditure budget is estimated at Rs.870.217 billion which shows an increase of 12.5% over the current year allocation of Rs.773.237 billion.

The 12% increase in expenditure is primarily in the employee related expenses which could not have been avoided. Similarly, the impact of increasing utilities has been absorbed.

Shah said that Sindh government’s austerity policy shall continue during the next financial year. “We have introduced major cuts in operating expenses. However, it would not be done at the cost of social sectors”, he added.

The Development portfolio for next financial year is Rs.283.5 billion which includes Rs.228 billion on account of Provincial and District ADP, he informed.

By now there is clear understanding within the Government of Sindh that “development” requires a medium to long -term strategy which is essential for allocating resources rationally keeping the overall objectives in sight.

It is thus no longer, about year to year financing for a scattered set of schemes that will lead us to attain our goals that we have set for the “overall growth; job creation and better services” for our people, he added.

This approach is also reflective of Sustainable Development Goals (SDGs) adopted by the province. The government has prioritized goals of Good Health and Wellbeing, Quality Education, Clean water and Sanitation, Affordable and Clean Energy, Decent work and Economic Growth. In addition, Gender Equality, and Climate Action are cross cutting goals.

This year after assuming office in August 2018; we made adjustments in the Budget 2018-19 by reducing the size of the provincial ADP from Rs.252 billion to Rs.223 billion in the background of fiscal tightening and low transfers in the first quarter of the year, CM said.

The uncertainties impacted the “development financing” in multiple ways; other than reduction in the overall kitty; it impacted timeliness as well, he added.

Hence, Finance Department was able to release only Rs.130 billion (till June 3, 2019) against Provincial & District ADP.As against this total release, the total expenditure expected till end June 2019 is approximately Rs.110 billion.

“We acknowledge that the spending is even lower than releases and this is on account of delay and uncertainty which remained throughout the year. Despite this situation, the provincial departments are expected to complete 453 schemes by June 2019”, minister said.

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