KARACHI, June 14(ABC): Amid ruckus in the assembly, Sindh Chief Minister Murad Ali Shah on Tuesday presented an Rs1.7 trillion “pro-poor” and “tax-free” budget for the next fiscal year 2022-23.
The chief minister said the past year witnessed “extraordinary changes” — both nationally and internationally — and it ultimately impacted the common man.
“Despite that, the Government of Sindh vows to leave no stone unturned to ensure economic and political stability in the province, contributing its shares [to] the common national effort, which is in line with the vision of the PPP,” CM Shah said.
The chief minister prayed that Pakistan and its democracy be protected from the dangers and challenges that it is facing.
“May democratic forces always rise and shine in this country. May Almighty Allah bestow us with courage and ability to serve the people of our motherland.”
Sharing the details of the budget, the CM said the total receipts of the provincial government for the next financial year would be around Rs1.67 trillion against the expenditures of Rs1.71 trillion, which shows a deficit of Rs33.84 billion.
Revenue receipts
He further elaborated that the revenue receipts would include Rs1.055 billion federal transfers, Rs374.5 billion provincial receipts (Rs167.5 billion provincial tax receipts excluding GST on services, Rs180 billion provincial sales tax on services and Rs27 billion provincial non-tax receipts), Rs51.1 billion current capital receipts, Rs105.5 billion other transfers such as foreign project assistance, federal grants and foreign grants, and Rs20 billion carry over cash balance, and public accounts of the province.
He added that the provincial tax collecting organisations would achieve their collection targets such as the Sindh Revenue Board’s (SRB) Rs180 billion, Excise and Taxation’s Rs1.20 billion, and the Board of Revenue’s Rs30 billion.
Expenditures
Regarding the expenditures, CM Sindh said that the current revenue expenditures for the next financial year would be Rs1.19 trillion, current capital expenditures will be around Rs54.48 billion, development portfolio Rs459.65 billion, including Rs332.165 billion provincial Annual Development Programme (ADP), Rs30 billion district ADP, and RS91.467 billion Foreign Assistance Project (FAP), and Rs6.02 billion other federal grants.
According to the CM, the provincial government — over the next 11 months (July to May) of the outgoing financial year — has received Rs716 billion against a share of Rs732 billion which shows a shortfall of Rs16 billion.
Shah added that his government, during the said period, received Rs45 billion in straight transfers and in Octroi and Zilla Tax (OZT) by receiving Rs18.9 billion against a share of Rs19.7 billion.
Annual Development Programme
Amid the ruckus, the CM Sindh continued to share the details of the 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 ongoing and 1,652 new ones, have been given an allocation worth Rs332.165 billion.
He added that the ongoing 2,506 schemes have been allocated 76% funds or Rs253.146 billion and 1,652 new schemes have been allocated 24% funds or Rs79.019 billion.
‘15% increase in govt employees salaries’
Moving towards the relief measures, the CM Sindh announced that the ad-hoc relief allowances for 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 an ad-hoc 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.
Shah announced that all the provinces have not presented their budgets yet.
“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.
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 a 10% increase in the 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.
CM Sindh promotes police constables
The chief minister also announced that the police constables posted on grade BS-5 will be promoted to grade BS-7.
Relief in services tax
CM Sindh announced to exempt toll manufacturing services from Sindh services tax, adding that a 5% reduced SST rate for “recruiting agents” would continue for the next two years — meaning up to June 30, 2024. “This relief is proposed for Pakistanis aspiring to work overseas,” he further elaborated.
Shah said that the services provided by cable TV operators were levied at a reduced rate of 10%, and the existing relief was proposed to be extended for a further period of two years ending on June 30, 2024.
The cable TV operators are proposed to be exempted, including the cable TV operators in rural areas under the PEMRA License of the “R” category to be exempt from SST till June 30, 2023.
The rate of SST on commission charges received by food delivery channels from home chefs has been reduced from 13% to 8% for a period of two years ending on June 30, 2024. In all other cases, the services provided or rendered by commission agents shall continue to be liable to SST at 13%.
He further added that the existing exemption on health insurance services will continue further for a period of one year till June 30, 2023. GIZ, a German development agency facilitating development projects in Sindh, has also been granted conditional exemption on sales tax on services as indirect relief to the public.
Education
The chief minister said that his government has kept the education sector as its top priority by allocating Rs326.8 billion which forms more than 25% of the 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.