Sindh Chief Minister Qaim Ali Shah on Monday unveiled in Sindh Assembly Rs 327.182 billion budget for fiscal year 2009-10, marking "a big" deficit of Rs 16.84 billion. The proposed budget showed an increase of 22 percent against the current fiscal year''s revised estimates of Rs 267.568 billion.
As per proposed budget, total revenue receipts are estimated at Rs 310.34 billion, which are Rs 42 billion higher than current year''s revised revenue estimates of Rs 268.271 billion. The Chief Minister, who also holds the portfolio of finance, however, told the house that the bulk of increase in new fiscal receipts was on account of possibility of getting arrears on account of sale of land and the province''s revenue held in bank guarantees.
Estimated revenue receipts from Divisible Pool, including Grant-in-Aid, are Rs 125 billion, with 12.7 percent increase over 2008-09 budget. The estimates under oil and gas receipts are Rs 50 billion and these are six percent less than current year''s revised estimates of Rs 53.4 billion. Overall federal transfers are estimated at Rs 204.6 billion as against revised estimates of Rs 183.2 billion.
The province''s own receipts have been pitched at Rs 39 billion with an increase of over 29 percent over revised estimates of outgoing year. On the expenditure side, the current revenue expenditure has been estimated at Rs 213.4 billion, with an increase of 15 percent over revised estimates of Rs 185 billion.
The current capital budget has a surplus of Rs 5.4 billion as Sindh government is expecting "Budget Support Loans" from World Bank and Asian Development Bank. The shares of local governments have been worked out to Rs 94.4 (including Rs 27.6 billion of District Support Grant) on the basis of PFC Award, and it reflects an increase of 21 percent over budget 2008-09.
The current revenue receipts are estimated at Rs 243.662 billion, Rs 30.126 billion higher than current fiscal year''s revised revenue receipts of Rs 213.536 billion.
In addition, current capital receipts have been estimated Rs 21.323 billion for next fiscal year as compared to Rs 20.937 billion in revised budget of current fiscal year, depicting an increase of Rs 386 million. Further, current capital expenditures have been estimated at Rs 15.879 billion, against Rs 7.554 billion of revised budget of current fiscal year.
The current revenue expenditures have been increased by Rs 28.446 billion to Rs 213.397 billion for the next fiscal year, out of which provisional expenditures, showing a rise of Rs 16.08 billion to Rs 118.972 billion for 2009-10. In addition, with an increase of Rs 11.838 billion, local governments'' expenditures have been estimated at Rs 94.425 billion for the upcoming fiscal year at Rs 82.587 billion, showing an increase of Rs 11.838 billion.
The overall current revenue and capital receipts have been estimated at Rs 264.986 billion for the year 2009-10 against the revenue and capital expenditure of Rs 229.277 billion, showing a surplus of Rs 35.709 billion.
The highest ever, Rs 75 billion have been allocated for Annual Development Programme (ADP) as compared to Rs 55 billion in revised estimates of fiscal year 2008-09, depicting an increase of Rs 20 billion. ADP allocation for district governments has surged by Rs 3 billion to Rs 15 billion for the next fiscal year.
Expenditures under Public Sector Development Programme (PSDP) have been estimated at Rs 97.905 billion against Rs 81.063 billion receipts. PSDP comprises Rs 75 billion for provincial ADP, Rs 892.77 million for Drought Emergency Relief Assistance (DERA), Rs 4.4 billion for foreign project assistance and Rs one billion for Sindh Cities Improvement Programme (SCIP).
"It''s a basic principle of development economics that public expenditure, especially the development expenditure, needs to be increased especially during recession for facilitating greater economic activity that can trigger demand which can then help raise economic productivity in the private sector," Qaim told the house.
Following federal government decision, the Sindh government has also announced to raise the salaries of government employees by 15 percent, which would have an extra burden of Rs 8 billion. The chief minister said also announced allocation of Rs 200 million for IDPs in the next year''s budget.
He said Sindh had succeeded in getting World Bank loan for Technical Assistance for International Bidding that would enable the province to move fast in receiving more international investment in this sector. Under Benazir Bhutto Shaheed Youth Development Program (BBSYDP) further 75,000 youth would be trained at a cost of Rs 2.5 billion.
"Grant of State Land to Landless Haris would continue and in the next phase and another 5000 beneficiaries would receive land," Qaim said. He said in addition to the existing 22,000 positions, 20,000 more positions, mostly in education, police and other departments, would be created.
Benazir Women Support Program has been initiated with a proposed investment of Rs 4 billion to support the poor women, said the chief minister. The overall police budget has been pitched at Rs 24.2 billion, with 11 percent increase over last year. He said that Jail Platoons and a separate Court Police would be raised for which Rs 300 million have been provided.
The Health Development Budget has been increased from Rs 3.5 billion to Rs 5.23 billion, with 49 percent increase. The overall allocation for promotion of education has been pitched at Rs 6 billion with 27 percent increase over last year.
"We are increasing the ''Girl Child''s'' stipend from Rs 1000 per year to Rs 2400 per year. This would be provided twice a year for encouraging enrolments. Over 330,000 girls would benefit from this." For the coming year, the Water and Sanitation portfolio has been pitched at Rs 3.79 billion for 272 Water Supply and Drainage Schemes.
Allocation for industries sector has been raised by 33 percent from Rs 1.2 billion to Rs 1.6 billion. In the next budget Rs 4.9 billion have been allocated for the water sector. Rs 1.02 billion have been budgeted for different road projects of Karachi. Also, an allocation of Rs 3.6 billion has been provided in ADP for Karachi Package, including components for Lyari, Malir, Keamari and rural Karachi.
Sindh government has also announced to enhance the minimum pension from Rs 150 and Rs 300 per month to Rs 1500 per month for pensioners/family pensioners. "This is no doubt a big deficit. However, a developing province, like Sindh with massive gaps on human and infrastructure development has little option but to move ahead with its ''Agenda for Change and Economic Reconstruction''," Qaim said.
"We understand the implications and we plan to meet this deficit through improving our own revenue collection; mobilising additional resources; containing current expenditures through ban on wasteful expenditures especially vehicles; maintaining ceilings; discouraging unnecessary foreign visits etc," he added.
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