KARACHI: The Sindh government has earmarked a huge amount of Rs 959 billion for development expenditures during the next fiscal year 2024-25 (FY25).

Sindh Chief Minister Syed Murad Ali Shah in his budget speech for FY25 revealed that budget allocation for the provincial development expenditure has been increased by 30 percent to Rs 959.1 billion for the next fiscal as against this year’s (FY24) budget allocation of Rs 735.103 billion.

While, the development outlay for the next fiscal year is 81 percent higher than actual spending and revised budget estimates of this fiscal year, which was Rs 529.6 billion.

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The total development expenditure outlay included Rs 493 billion for Provincial ADP and Rs 55 billion for district ADP, Rs 334 billion for Foreign Project Assistance and Rs 76.9 billion for federal PSDP schemes.

The chief minister in his budget speech said that far as development expenditure is concerned, Sindh was in dire need of infrastructural development post 2022 floods devastation.

With the unwavering support of international donor agencies, the Sindh government was able to steer the development activities in the last two years on a sustainable basis. He thanked all the international donor agencies for their support and commitment to Sindh government as resultantly, Sindh government was able to receive appropriate and timely assistance of our foreign development partners.

Other major component of annual receipts are related to Foreign Project Assistance, Federal PSDP and budgetary support allocations. Budget Estimates 2024-25 for FPA component stand at Rs 334 billion covering 27 foreign assisted projects from ADB, WB, USAID, ISDB, AIIB, Exim bank Korea and the JICA. Federal PSDP has been committed at Rs 76.9 billion.

The Sindh government has also decided to complete maximum number of schemes continued for the last 10 years. Therefore, full funds are provided equivalent to current throw-forward till date to the schemes with expenditure more than 70 percent or having current throw-forward less than Rs 50 million.

Similarly, 50 percent allocation is provided to those schemes having current throw-forward in between Rs 50 million to Rs 100 million. There were other regular schemes which have been provided 20 percent allocation of current throw-forward due to fiscal constraints.

In ADP 2024-25, there will be no new schemes because of the impact of BSR and Composite Schedule of Rates (CSR).

Under ADP for the year FY25, there are 4,250 ongoing schemes with 79 percent allocation of Rs 305.496 billion.

There are 395 unapproved schemes which were part of ADP 2023-24 and could not be approved during the year due to ban imposed by ECP will continue again as unapproved schemes in ADP 2024-25 with allocation of Rs 92.87 billion being 24 of total ADP.

Some 552 ongoing schemes, where more than 70 percent expenditure is made, have been fully funded for completion by June, 2025. In addition, 849 ongoing schemes with current throw-forward less than Rs 50 million have been fully funded for completion by June, 2025.

While, 858 small nature ongoing schemes have been fully funded for completion during the next fiscal year.

Those schemes, where tenders are not issued and require cost increase due to Composite Schedule of Rates (CSR) 2024, will be provided additional funds from block allocation of Rs 80 billion kept in ADP.

The Sindh government believed that through this strategy, out of total 4,644 schemes continued in ADP 2024-25, there will be about 1,812 schemes, which have been provided full funds and will be likely to be completed in next fiscal year.

Allocations for major sectors/departments excluding cost impact due to CSR 2024, has been kept in block allocation.

Under the development budget for the next fiscal year, education sector schemes are Rs 32.163 billion as against Rs 13.82 billion for this fiscal year. Health sector schemes will get Rs 18.0 billion under ADP schemes compared to Rs 2.72 billion for this fiscal year.

In addition, Rs 71.959 billon allocated for Water & Sanitation and Road sector schemes in Local Government, Rs 22 billion for water and sanitation sector schemes in Public Health Engineering, Rs 60.40 billion for transport and communication sector, Rs 30.09 billion for irrigation including lining of canals is and agriculture including livestock sector have been given a budget of Rs 6.633 billion.

Block allocation of Rs 20 billion is kept under Special Initiatives for Renewable Energy and Water and Rs 10 billion are kept for Rehabilitation & Reconstruction to facilitate damaged infrastructure. Post 2022 floods, greater focus was on reconstruction and rehabilitation of infrastructure, however, from the next FY, focus has shifted towards softer components of development in social sectors i.e. education, health, social protection, transport etc, the chief minister informed.

Copyright Business Recorder, 2024