Axing developmental and non-developmental expenditures by 40 and 30 percent, respectively, the City District Government Karachi (CDGK) on Wednesday announced a tax-free Rs 70.794 billion budget for fiscal year 2011-12, with Rs 26.225 billion coming from the Karachi Water and Sewerage Board (KWSB) only
City Administrator Fazlur Rehman, in exercise of powers vested on him by the City Council, approved the CDGK’s budget presented to him by CDGK Finance and Planning Executive District Officer (EDO) Aamir Khurshid, in the form of a council resolution in the conference hall at the Civic Centre.
The budget shows estimated expenditures at Rs 70.691 billion with a surplus of Rs 102.820 million and Rs 32.711 billion earmarked for developmental and Rs 37.887 billion for non-developmental expenditures, with major allocations for education (Rs 13.034 billion), works and services (Rs 11.898 billion) and health (Rs 5.075 billion) sectors.
According to the budget documents, the total receipts of CDGK during fiscal year 2011-2012 are estimated at Rs 70.794 billion, with the KWSB contributing Rs 26.225 billion – more than one-third of the total outlay.
The OZT share from Sindh is Rs 8.050 billion while other major revenue sources include Rs 1.512 billion from Municipal Services; Rs 1.295 billion from Master Planning; Rs 1.019 billion from Works and Services; Rs 1 billion from SBCA as transfer of income; Rs 804.23 million from Finance and Planning; Rs 538 million from Enterprise and Investment Promotion; Rs 138.39 million from Coordination; Rs 98.90 million from Transport and Communication; Rs 103.83 million from Community Development; Rs 81.39 million from Health; Rs 45.32 million from Karachi Mass Transit Cell; and Rs 800,000 from Information Technology. The funds for devolved departments of the Sindh government through the Single Line Transfer System (Salary, Non-Salary and District ADP) are Rs 19.740 billion.
The total expenditure would be Rs 70.691 billion, leaving an amount of Rs 100.282 million as surplus. The budget envisages completing 80 development schemes.
The current receipts are estimated at Rs 23.537 billion and the capital receipts at Rs 1.290 billion. The Revenue Department has been given the topmost slot in revenue generation with estimated collection of Rs 8.157 billion.
In the budget, at least Rs 122.70 million have been earmarked for the Karachi Circular Railway project and at least Rs 14.708 billion allocated developmental projects including Landhi Korangi Cottage Industry, Karachi Institute of Heart Diseases, cardiac care emergency units, storm water drainage system, procurement of fire extinguishing equipments and vehicles and construction of an oil-tanker terminal at Zulfikarabad.
For the Annual Development Programmes (District), Rs 3 billion have been set aside, while Rs 1.946 billion for towns/union councils; Rs 1.5 billion for coordination; Rs 1.333 billion for revenue; Rs 1.319 billion for municipal services; Rs 1.210 billion for debt servicing, pension fund and other miscellaneous expenditures; Rs 563.65 million for community development; Rs 384.30 million for Transport and Communication; Rs 347.59 million for information technology; Rs 305.85 million for agriculture; Rs 228.87 million for Karachi Mass Transit Cell; Rs 221.47 million for Master Planning; Rs36.84 million for Enterprise and Investment Promotion; and Rs 13.90 million for literacy have been allocated.
Substantial sums have also been allocated in the budget for the Tameer-e-Karachi Programme (Rs 2.6 billion); Rs 950 million for Citizens Community Board; Rs 663.23 for development works in Scheme 23, Korangi; Rs 450 million for purchase of heavy machinery; Rs 400 million for development works in the 178 union councils; Rs 180 million for maintenance and cleaning of storm water drains; Rs 80 million for development of various parks; and Rs 100 million for the construction of a parking plaza.
Admitting lesser development projects during the outgoing fiscal year, the administrator stated that the CDGK’s monthly administrative expenditure had risen from Rs 480.70 million to Rs 600.50 million after a raise of 50 percent in salaries from the Sindh government and claimed that the octroi and zila tax (OZT) share was not enhanced as required.
“The city government has requested the Sindh government to increase its OZT share because if the share were not enhanced, the CDGK would be facing serious financial constraints in the upcoming fiscal year. Besides, this year the salaries of government employees have also been raised by 15 percent,” said Rehman, adding that the budget allocations for developmental and non-developmental expenditures have been reduced by 40 and 30 percent, respectively.
The CDGK would review the overall expenditures after every three months in a bid to ensure smooth functioning. Priority has been given to the ongoing schemes so that citizens can have timely facilities.
Lauding the developmental work of former city nazim Mustafa Kamal, the administrator said that priority has also been given to mega projects in order to facilitate the citizens.
