Unveiling the shadow provincial budget 2012-13, the Muttahida Qaumi Movement (MQM), a major partner in the Sindh government, has proposed Rs 484 billion surplus budget with a proposed allocation of Rs 160 billion for development projects. The MQM suggested to the provincial government to merge the Board of Revenue (BoR) and Sindh Revenue Board (SRB) under the overall supervision of provincial finance department.
The party also called for lowering the tax-rate and fixing of services tax rate of 12 percent for all sectors, besides asking for imposing a levy on all taxable sectors and individuals to increase revenue generation. The MQM also proposed that Sindh Commercial Bank should be converted into a micro credit bank having at least 103 branches at taluka headquarter level to cater the needs of poor business persons, craftsmen and farmers. MQM's ministers handed over the proposals regarding the next fiscal year's provincial budget to Chief Minister Sindh Syed Qaim Ali Shah and Finance Minister Syed Murad Ali Shah during a cabinet meeting held at the Chief Minister House on Saturday.
The shadow budget was announced by Syed Sardar Ahmed, MQM's parliamentary in Sindh Assembly, during a press conference held at the new Sindh Secretariat building. MQM's deputy parliamentary leader and Minister for Youth Affairs Syed Faisal Sabzwari, Minister for Health Dr Sagheer Ahmed, Minister for Information Technology Raza haroon, Shaikh Muhammad Afzal, Nisar Panhwar and Zubair Ahmed Khan also accompanied Sardar Ahmed.
Sardar Ahmed said that MQM's budget proposals were in line with the MQM leader Altaf Hussain's vision for the welfare of the people of Sindh in the form of a formal budget document. He said that the proposals recommend all taxable incomes to be brought under the tax net. An agricultural Income Tax Bill 2012 was also part of the proposals.
Ahmed said that proposals not only supported giving subsidy on wheat, it also recommended a subsidy on wheat flour to contain the price of a flour bag of 40-kg at Rs 750. He said that the MOM had proposed Rs 160 billion for development projects.
MQM's budget proposals also proposed that the expenditure Police should be increased to Rs 35,956 million at the Current Expenditure level which includes Rs 5,000 million for the creation of a Provincial Intelligence Bureau (PIB) under Home Secretary at Karachi and its regional offices at all district headquarters. Under the Capital Head, funds utilised during the 10 months of the current year for investment amounting to Rs 13,300 million had been proposed to be withdrawn for utilisation on such projects/schemes that served the poor, it stated.
Rationalisation and reduction of Sales Tax on Services from 16% to 12%.( No levy on Construction industry). Discriminatory rates under Valuation Table notified by the Superintendent Stamps should be withdrawn. Supply of Ata at Urban Centers (District Headquarters) at a subsidised rate of Rs 750 per 40-kg on issuance of Ration Cards or through other mechanism (Utility Stores have failed miserably to provide atta and sugar on subsidised rates to genuine consumers). A subsidy of Rs 2,500 million to growers and Rs 2,000 million to consumers in cities needed to be paid to achieve this target, it stated.
Allocation of Rs 440 million (Rs 20 million each in 22 district headquarters hospitals and Rs 150 million for upgrading and provisioning health services of Civil Hospital, Jinnah Hospital and five other town hospitals of Karachi and Rs 500 million for taluka hospitals, rural and urban health centers and basic health units.
To provide additional funds for Curative and Preventive Health Services, the allocation for the Health Department was increased from the actual Rs 15,400 million to Rs 23,700 million. Capital Development Expenditure of Rs 8,000 million set aside for Education Department and Rs 10,640 million for Health Services. An allocation of Rs 5,000 million for infra-structure development of 22 District Headquarters, including Rs 1,500 million for Karachi, it further stated.
Instead of planning a new city costing billions of rupees, the economic and social infrastructure at all District Headquarters needs to be improved with the assistance of private sector town planners. Monitoring and Evaluation team for each district of very reputable honest citizens (including MPAs and elected members of the local governments) for constant vigilance and monthly evaluation reports, it proposed. Simplification of the procedure for the release of funds to curb the red-tapism has also been suggested. Simplification of the format of monthly Civil Accounts, AG Sindh's Office has also been proposed.
The proposals also called for allocating Rs 10,500 million for Agriculture, Livestock, Fisheries and Forest, Allocation Priority Program (MPAs) would get Rs 3,360 million, ongoing schemes would be allocated Rs 55,000 million, Rs 6,000 million set aside for District Development Grants, Education would be allocated Rs 8,000 million, Health would be allocated Rs 10,640 million, Industries would be allocated Rs 3,000 million, Infrastructure - Physical & Social Sector would be allocated Rs 5,000 million, Irrigation - Small Dams Rs 2,500 million, Mines & Minerals Rs 5,000 million, Public Safety / Security Rs 5,000, Public Health Engineering (drinking water) Rs 2,500 million, Rural Development Rs 5,000 million, Science and Information Technology Rs 5,000 million, Social Welfare Rs 5,000 million, Water and Drainage Rs 7,500 million, Block Allocation Rs 5,000 million, and development revenue expenditures would be allocated Rs 16,000 million.