FY25: Sindh govt proposes up to 30% increase in salaries as CM Murad presents ‘balanced budget’

Chief Minister Syed Murad Ali Shah, who also holds the portfolio of provincial finance chief, on Friday presented the Sindh budget for financial year 2024-25 in the assembly.

The Sindh cabinet had earlier accorded approval of the Rs3-trillion plus budget for FY2024-25.

“It is a balanced budget as our expenditures will be equal to our income,” the chief minister said as he started the budget speech.

Key highlights

• Total outlay for FY25 is Rs3.056 trillion
• A total Rs519 billion for education
• An amount of Rs334 billion for healthcare
• For development, Rs959 billion proposed
• Up to 30% increase in salaries
• Pensions to be raised by 15%
• Allocation of Rs25 billion for Solar Energy Programme
• A total Rs56 billion for transport sector and Rs86 billion for works and services sector
• For energy sector, Rs77 billion proposed
• For local government sector, Rs329 billion proposed

From Murad’s speech in Sindh Assembly

The current revenue expenditure for the next financial year has been proposed at Rs1.912 trillion, which is 33.5% higher than the budget estimates of the FY2023-24.

“The increase is mainly due to the inflationary impact on the operating expenses, enhancement in grants provided to non-financial institutions including hospitals, public sector universities and local councils, and raise and salaries and pensions,” Murad Ali Shah said.

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Education

“The biggest contribution of the Sindh government with this budget will be in the education sector,” he added.

On the revenue side, the budget for education has been proposed at Rs454 billion for FY25, against Rs334 billion of FY24.

“This makes 25% of our total revenue expenditure for FY25,” he said.

The provision of funds for Sindh Higher Education Commission is Rs34.5 billion against last year’s budget of Rs23 billion.

For universities, the provincial government has allocated Rs34 billion.

Free textbooks will be provided to all the students of pre-primary to matric in all the government as well as its partner schools in the province.

For this, the government has proposed a budget of Rs7.5 billion, against Rs2.5 billion last year.

An amount of Rs12 billion has been allocated for the purchase of furniture and fixtures in three phases out of which Rs4 billion has been earmarked for FY25.

An allocation of Rs6.875 billion has been earmarked for the Reform Support Unit, which includes Rs2.375 billion for restoration of the schools damaged by floods.

Additionally, Rs1.65 billion has been allocated for operationalisation of non-formal education centers.

Health

For improved service delivery in the health sector, a budget of Rs300 billion has been proposed for FY25, 32% higher than Rs227 billion last year.

Maintainance of law and order

For security and policing, the provincial government has proposed a budget of Rs172 billion.

Local councils

An amount of Rs160 billion has been proposed for the local councils in the province.

Irrigation and agriculture

A total Rs65 billion has been earmarked for the irrigation and agriculture sectors. (Rs35 billion for irrigation, Rs30 billion for agriculture).

Salaries

For Grade 1 to 6 government employees, the provincial government has proposed a 30% increase in salaries.

“Moreover, the Sindh government will pay personal pay to those employees of Grade 1 to 6 whose salaries do not reach the minimum wage of Rs37,000 even after the proposed increment,” the chief minister said.

For Grade 7 to 16, an increase of 25% has been proposed.

For Grade 17 and above, a proposal of 22% increase has been tabled.

Pension

The provincial government has earmarked a 15% increase in the pensions of retired government employees.

Minimum wage

Minimum wage in the province has been pitched at Rs37,000 per month.

Budget 2024-25: income tax calculator for FY25

Current capital expenditure

An amount of Rs184.8 billion has been proposed for the province’s current capital expenditure in FY25 against Rs136.256 billion last year.

The current capital expenditure includes repayment of loans, viability gap funding (Rs60 billion), and pension funds.

Development expenditure

The Sindh government has proposed Rs959.1 billion in provincial development expenditure for FY25, which the chief minister said is the “highest ever” for the province.

If Rs60 billion allocated for the viability gap funding were added to the proposed Rs959.1 billion budget for the development expenditure, this would make a total of over Rs1 trillion, one-third of the province’s total budget.