With the growing price-hike and increase in the cost of doing business due to shortage of electricity, a tax-free election budget of more than Rs 555 billion is likely to be announced by Sindh Finance Minister Syed Murad Ali Shah on Monday, June 11, 2012, Pakistan Today has reliably learnt.
Moreover, the rates of some non-tax levies such as water tax on agriculture, licence fee and tender fee would be rationalised to improve resource mobilisation. Some of these charges will be clubbed together instead of increasing their rates to yield better revenue, well-placed sources privy to the budget-making process told Pakistan Today.
The sources said the Annual Development Programme (ADP) in the new budget is likely to be Rs 180 billion including Rs 20 billion for the defunct district governments. Besides, more than Rs 38 billion have been allocated for the foreign-funded projects in the province. At all there are more than 1,288 ongoing schemes and at least 493 new schemes have been included in the budget.
The break-up shows that at least Rs 16 billion for works and services, Rs 11.85 billion for PMAs priority program, Rs 13.5 billion for coal and energy, Rs 12 billion for education, Rs 11 billion for health, Rs 5.8 billion for statistics, Rs 5.5 billion for agriculture, Rs 10.60 billion for special packages for Karachi, Hyderabad, Nawabshah and Larkana, Rs 7 billion for irrigation, Rs 950 million for wildlife and forests, Rs 3.5 billion for livestock, Rs 4.8 billion for information technology (IT), Rs 430 million for women development, Rs 270 million for environment, Rs 580 million for antiquities, Rs 280 million for food, Rs 1.3 billion for commerce and industries, Rs 360 million for archives and information, Rs 350 million Auqaf, Rs 40 million for cooperation, Rs 720 million for minorities, Rs 210 million for social welfare, Rs 130 million for human rights, Rs 360 million for population welfare etc.
The major constraint on province resources would be from salaries of more than 40,000 to 45,000 new employees recruited by the present government, they said, adding this would suppose to be a major burden on the government’s non-development expenditure.
There is also an increase in demand for grants by the police department (home department) due to prevailing law and order situation. The target of tax revenues would be achieved by at least 90 percent however there is an acute deficit in non-tax revenue, sources added. After the National Economic Council (NEC) meeting, the provinces have been informed about their share from the center under which the budget has been worked out. Besides, the position of federal grants and transfers was much better as compared to past years, they added.
According to sources, the funds not utilised by departments on various projects would be diverted for the projects, which attains the advanced stage of completion.
Sindh’s major chunk of revenue is generated from six provincial taxes collected by department of excise and taxation and proceeds collected by the Sindh Board of Revenue on account of stamp duty, land users charges, water tax, licence and tender fee. However, the bulk of resources (about 85 per cent) come through federal grants, transfers and project aid.
