Budget 2020-21: CM Murad presents Rs1.24 trillion Sindh budget

Chief Minister (CM) Sindh, Murad Ali Shah, who is also the provincial finance minister, presented the provincial budget for the next financial year 2020-21 at the Sindh Assembly on Wednesday.

The total outlay of the provincial budget for Financial Year 2020-21 stands at Rs1.24 trillion, with a deficit of Rs18.38 billion. "I am proud to be presenting the budget for the eighth time," said Murad Ali Shah.

Coronavirus Pandemic

CM Shah initiated his speech by addressing the ongoing coronavirus pandemic, which has not only been a health crisis but has also created economic issues due to lockdown imposed throughout the country.

"The provincial government initiated a humanist approach to combat this pandemic, similar to China, Taiwan, and New Zealand," he said.

"The world has changed the direction of its resources to face the enemy," said Sindh Chief Minister, while applauding the role of healthcare workers and paramedics staff.

The Coronavirus is basically a threat to the existing health system," said Murad. He said on February 26, after the first case, the government took steps to close the schools.

Expenditure

CM Sindh said that the non-development expenditure was estimated at Rs968.99 billion while the development expenditure was estimated at Rs232.94 billion and the capital expenditure was estimated at Rs39.19 billion.

Tax Collection

No new tax has been introduced in Budget 21-2020, says Chief Minister.

According to the CM, total receipts were estimated to be Rs1.22 trillion, including federal receipts at Rs760.30 billion which accounts for 65 percent, provincial receipts at Rs313.39 billion or 26.8 percent, capital receipts at Rs25 billion i.e 2.1 percent and other receipts at (FPA & PSDP) Rs69.05 billion (5.9 percent).

The minister informed that the overall federal receipts decreased by Rs71.72 billion i.e. 9pc lower than the current financial year 2019-20. Whereas, the overall provincial receipts are estimated at Rs313.4 billion, showing an increase of 9 percent than the current financial year.

Poverty Alleviation

Rs3 billion has been earmarked for poverty alleviation programs for small businesses in urban areas, Sindh Chief Minister said. Rs2 billion proposed for poverty alleviation program for small workers/communities in rural areas informed CM, whereas, Rs20 billion is estimated for cash transfer under the `Sindh Peoples Support Programme’.

Agriculture

The budget of the agriculture department has been increased by 40% to Rs 15.84 billion, Sindh Chief Minister said. The main reason for this is the subsidy package for small farmers and locust heart control, Sindh Chief Minister said.

He informed that the Sindh government has allocated Rs440 million for locust control.

Rs1 billion has been allocated to small farmers as a concession for quality rice seeds. Rs1 billion has been allocated for fertilizer subsidy to small farmers, he said. Rs1 billion has been allocated to small farmers as subsidy for pesticides, Sindh Chief Minister said.

Rs5 billion allocated for a soft loan program for small and medium enterprises through Sindh Bank said CM Sindh.

CM informed Rs700 million is proposed for IT Technology Intervention and Innovation Solution, whereas, Rs500 million has been earmarked for startups incubators and accelerators based on supporting technology.

Health

The budget of the health department has been increased by 16.1pc to Rs139 billion to deal with epidemics and contagious diseases.

CM said that basic salary Health Risk Allowance will be provided to all health personnel including postgraduates and house job officers working in COVID-19 cases applicable from March 2020.

Education

The budget of education departments has been increased by 10.2pc to Rs243 billion for quality education and to address post-epidemic education challenges, Sindh Chief Minister said.

Grant to local councils increased by 5pc to Rs78 billion.

Annual Development Program

Provincial ADP is estimated at Rs155 billion, whereas, District ADP is estimated at Rs15 billion, Sindh Chief Minister said.

Federally funded projects are estimated at Rs8.3 billion, Sindh Chief Minister said. Foreign-funded projects are estimated at Rs54.64 billion. Public-private partnership projects for infrastructure development are estimated at Rs117 billion.

Talking about creating job opportunities for the youth, CM Sindh said 2,500 youths will be trained in various commercial jobs through the private and public sector, whereas, 70,000 youths will be provided training opportunities regarding Coronavirus.

Earlier, while presiding over the pre-budget meeting of the Sindh cabinet, Shah said the provincial government has tried to present a balanced budget. “Despite difficulties, we have a budget for development works,” said Chief Minister Sindh

“Our budget provides relief to the poor, farmers, youth, government employees, and private sector,” he added.

The Sindh cabinet had also approved a 10pc increase in the salaries of government employees.

The Opposition continued to raise slogans throughout the budget session.

Budget measures

As per details, amid the spread of coronavirus, the rules and regulations of the Sindh Assembly were changed, after which members will be able to attend the meeting online from their homes.

Whereas, only 25 percent of members will be present in the House during the session.

Federal Budget

The federal government presented 'Corona' budget for the next fiscal year on Friday with a total outlay for the next fiscal year has been projected at Rs 7132 billion and total revenue at Rs 6573 billion with the federal board of revenue share of Rs 4963 billion as opposed to Rs 3900 billion for the current fiscal year.

The GDP growth for the next fiscal year has been targeted at 2.1 percent with 6.5 percent inflation and a current account deficit of 4.4 percent as well as to increase foreign direct investment (FDI) 25 percent.