The fiscal deficit of Sindh has been drastically reduced by rupees seven billion, from Rs 12.341 billion to Rs 5.341 billion, Business Recorder learnt here on Saturday. Sindh Senior Minister Syed Sardar Ahmed in his budget speech on June 15 in the provincial assembly announced that the budget deficit, with a total outlay of Rs 236.222billion, stood at Rs 12.341 billion.
The Sindh Finance Department officials attributed the narrowing of gap to the increase in the Federal grant-in-aid to 14.14 billion from Rs 7.14 billion for the current fiscal year. The Federal government provided this amount as a support for carrying out projects being undertaken for the development of the province, they said.
The officials pointed that one of the major reasons for the deficit was 28.2 percent raise in the Provincial Finance Commission (PFC) award to local governments. They said that the local governments would be receiving Rs 72.747 billion during 2007-08 on account of PFC award as against Rs 56.755 billion in the corresponding year.
It may be pointed out that the 2006-07 budget with a total outlay of Rs 193.222 billion was a surplus as compared to the budget for the current fiscal. The provincial receipts for 2006-07 were 193.403 billion, they said. Sindh Finance Advisor M.A Jalil, when contacted, confirmed the reduction in the fiscal deficit of the province by seven billion rupees.
"The Federal government will provide rupees seven billion in addition to estimated Federal grant, which reduces the deficit to a large extent", the advisor said. The Federal government, out of the total development outlay of over Rs 71 billion allocated for current fiscal year, also provided Rs 14.38 billion for carrying out development projects in the province.