Sindh unveils Rs 3.056 trillion budget with heavy focus on development, social welfare

KARACHI:

Sindh Chief Minister Syed Murat Ali Shah on Friday presented a budget of Rs 3.056 trillion for the financial year 2024-2025. The budget includes a significant increase in development spending and proposes wage increases of 22 to 30 percent.

The budget allocates Rs 959 billion, or 31 percent, for development projects, underscoring a strong commitment to infrastructure and social services.

Projected revenue for the province is over Rs 3 trillion, with 62% coming from federal transfers and 22% from provincial collections.

Other sources of revenue include capital receipts, foreign aid for projects and grants. The expenditure breakdown shows Rs 1.9 trillion (63 per cent) allocated for current revenue, Rs 184 billion (6 per cent) for current capital and Rs 959 billion (31 per cent) for development expenditure.

Sectoral distribution

The budget allocates Rs 519 billion for education, with Rs 459 billion dedicated to current revenue expenditure. Healthcare receives a total allocation of Rs 334 billion, with Rs 302 billion earmarked for current expenditure. The local government has a proposed budget of Rs 329 billion.

Rs 58 billion is allocated for agriculture, including Rs 32 billion for current expenditure. The energy sector gets Rs 77 billion, with Rs 62 billion for running costs.

Rs 94 billion is allocated for irrigation, with Rs 36 billion for current expenditure. Works & Services gets Rs 86 billion. Planning and Development is allocated Rs.30 billion.

Social protection

The budget prioritizes social protection, with Rs 34.9 billion earmarked for pro-poor initiatives and Rs 116 billion in subsidies to ease the financial burden on citizens. It is also proposed to increase the minimum wage by Rs 37,000. Key relief measures include wage hikes of 22-30%, pension hikes of 15% and Rs 25 billion for housing schemes.

New initiatives

Several new initiatives are aimed at long-term growth and economic recovery. The Hari Card scheme has Rs 8 billion for 12 million farmers. An inclusive enclave at Korangi, with an allocation of Rs 5 billion, will offer comprehensive facilities. The budget also introduces fiscal devolution for police stations with an allocation of Rs 485 million, a Rs 5 billion solar energy initiative for solar home systems, a Rs 5 billion Hub Canal Project for water supply in Karachi and a Rs 5 billion Mazdoor Card scheme for welfare of work.

Investment in human capital

Investment in human capital is emphasized with Rs 190 billion in grants for education and health care, including Rs 35 billion earmarked for universities and support for major hospitals and medical institutions.

The Sindh Budget 2024-25 highlights a comprehensive approach to development, social welfare and economic recovery, reflecting the government’s commitment to the long-term development and well-being of its citizens.