KARACHI: The Sindh government is likely to present a budget of over Rs 10.93 trillion with the allocation of all time high funds for the Annual Development Plan (ADP) i.e. Rs 349.1 billion for the fiscal year 2018-19 on May 10, Pakistan Today has learnt.
Sindh Chief Minister (CM) Murad Ali Shah will present the budget for the FY 2018-19 in the Sindh Assembly today and it will be the last budget of the present Pakistan People’s Party (PPP) led Sindh government.
According to official documents made exclusively available with Pakistan Today, an allocation of Rs 1.093 billion has been made as the total expenditure, while Rs 340.5 billion allocated for employee-related expenses, Rs 94.6 billion for pension payments, Rs 118.7 billion for operating and maintenance expenses, Rs 349.1 billion for the Annual Development Plan (ADP) that includes Rs 244 billion for provincial ADP, Rs 30 billion for district ADP, Rs 30 billion for federal PSDP and Rs 45 billion for foreign project assistance.
The documents further reveal that the province revenue comprising of federal transfers and provincial tax and non-tax receipts shrank by 0.5 per cent against the budget estimates of 2015-16 and expanded by 6.3 per cent in 2016-17.
The shortfall was mainly observed in federal transfers, provincial tax and non-taxes revenues, as well as, the federal development grants. The sluggish economic growth rate, inefficiency in tax administration and tax collection, in addition to the ban on government land disposal was mainly responsible for the less than targeted revenues of the province.
“Keeping in view the previous years’ trends and also that of the first six months of the current financial year, the actual revenue of the province is expected to shrink by 9 per cent during the current financial year. Over the next three years, the revenue of the province is expected to grow at the annual accumulated growth rate of 14 percent with growth of 14 per cent in Revenue Assignment and Straight Transfers, 14 per cent in federal PSDP, and 10 per cent in provincial revenue and 7 percent on other grants (OZT)” the documents further revealed.
According to budget documents, revenue transfers from the federal divisible pool, straight transfers and grants constituted 80 per cent of the gross provincial revenues in the FY 2015-16, and 78 per cent in 2016-17. Given the revenue mobilisation efforts of the provincial government, the share of federal transfers would be around 76 per cent of the total provincial revenue receipts during the current financial year and also in the next three years.