Sindh CM unveils 'tax free' budget for FY 2022-23

Sindh CM unveils tax free Rs1.71 tr budget for FY 2022-23

KARACHI (Dunya News) - Sindh Chief Minister Murad Ali Shah on Tuesday presented a budget of Rs. 1714 billion with a deficit of Rs. 33 billion for Sindh, Pension has been increased by 5%, total deficit has been kept at Rs 33 billion, no new tax has been imposed.

As soon as the budget speech of the Sindh CM started, the PTI members begin shouting slogans, at which Murad Ali Shah angrily criticized the opposition and continued the budget speech.

Addressing on the Assembly floor, the Chief Minister Sindh said that the total expenditure of the provincial government for the next financial year would be Rs. 1,713,583.1 million as against the total receipts of Rs.1,679,734.8 million while the total revenue collection will be 1,679,734.8 million including federal transfer of Rs 1.055 billion, provincial collections of Rs 374.5 billion (167.5 billion provincial tax collections including GST on services, provincial sales tax on services 180 billion and 27,000 million provincial bread). 

He said that the provincial tax collecting organizations would achieve their collection targets such as Sindh Revenue Board (SRB) Rs180 billion, Excise & Taxation Rs 1.20 billion and Board of Revenue Rs 30 billion.

Education: Murad Ali Shah said that his government has kept the education sector as its top priority by allocating Rs326.8 billion which forms more than 25% of total budget outlay. He added that the health sector has also been given top priority by pitching budgetary allocation at Rs230.30 billion which forms more than 19% of total budget outlay.

In the proposals for the upcoming budget, the Sindh government has adopted a policy to either establish a full-fledged university or a campus of a recognised public university in at least seven districts one each in Korangi, Karachi West, Keamari, Malir, Tando M Khan, Tando Allah Yar, and Sujawal.

Sharing details of these universities, Murad Ali Shah said that Korangi will have a University of Technology and Skill, Vocational/Industrial Development, while Karachi West and Keamari will have sub-campuses of this university. Malir will have a sub-campus of NED University. Likewise, Tando M Khan and Tando Allah Yar will be given sub-campuses of IBA Karachi or Sukkur IBA and Sujawal will have a sub-campus of Mehran University.

Law and order: For the next financial year, the total allocation for the Home Department, including Sindh Police and jails, has been enhanced to Rs124.873 billion from Rs119.98 billion.

15% increase in salaries: The CM Sindh announced that the adhoc relief allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of the federal government were being merged and revised basic pay scale 2022 for civil servants of Sindh government was being introduced on the pattern of the federal government.

He also announced adhoc relief allowance at the rate of 15% of basic pay scales to government servants from July 1, 2022.

“Disparity Allowance at the rate of 33% of basic pay will be paid to civil servants in BPS-1 to 16 and at the rate of 30% to civil servants in BPS-17 and above in lieu of the differential rate of ad-hoc relief allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 and 2021, which are being abolished from July, 2022,” he said.

“If they decide to increase the salaries of their employees more than the employees of the Sindh government, we would take decisions accordingly though the salaries and pensions of our employees are better than the employees of other provinces,” he said.

Annual Development Programme(ADP): The CM Sindh continued to share the details of the Annual Development Programme (ADP) 2022-23, mentioning that the district ADP size has been kept at Rs30 billion as was done during the current financial year.

The chief minister disclosed that 4,158 schemes, including 2,506 on-going and 1,652 new schemes have been given an allocation worth Rs332.165 billion. He added that the on-going 2,506 schemes have been given 76% funds or Rs253.146 billion allocation and 1,652 new schemes have been allocated 24% funds or Rs79.019 billion.

The CM announced that 1,510 schemes would be completed in the upcoming fiscal year.

Moreover, Rs26.850 billion have been allocated for the pro-poor, social protection and economic sustainability package.

Pensions to be increased by 5% The CM said that the pensioners in the province were already getting a 22.5% increase in net pension than pensioners of the federal government till February 2022. Therefore, he said an increase at the rate of 5% of net pension would be paid to the pensioners of the provincial government from July 1, 2022.

According to Shah, after the announcement of 10% increase in net pension by the federal government in March 2022 and enhancement of the rate of increase to 15% from July 1, 2022, the pensioners of the Government of Sindh would still be getting 12.5% more of net pension compared to that of the pensioners of the federal government.