Sunday, November 24, 2024

Unveiling the Sindh Budget 2023-24:Sialent features and key highlights

In a significant development for the province of Sindh, Chief Minister Syed Murad Ali Shah recently presented a budget of Rs2,247.6 billion for the financial year 2023-24. The budget primarily aims to address the needs of flood-affected people and provide social protection to the poor residents of the province. This article will delve into the key highlights of the budget, shedding light on the major allocations and initiatives that the government plans to undertake.

Overview of the Budget Presentation

The budget was presented by CM Syed Murad Ali Shah, who also serves as the Sindh finance minister, on the floor of the Sindh Assembly. The total revenue receipts of the provincial government are estimated at Rs2,209.79 billion, reflecting an increase of 31.56% compared to the previous financial year. However, the estimated expenditures stand at Rs2,247.58 billion, resulting in a shortfall of Rs37.795 billion.

Main features of the Sindh Budget 2023-24

  1. Sindh Chief Minister Syed Murad Ali Shah presented a budget of Rs2,247.6 billion for the financial year 2023-24.
  2. The budget focuses on rehabilitating flood-affected people and providing social protection for the poor.
  3. Total revenue receipts are estimated at Rs2,209.79 billion, with estimated expenditures of Rs2,247.58 billion, resulting in a shortfall.
  4. Rs30 billion from the development expenditure is allocated for the district Annual Development Project (ADP).
  5. Rs312.25 billion is earmarked for the education sector, a 7% increase from last year.
  6. Rs214.55 billion is proposed for non-development activities.
  7. Rs233 billion was spent in the previous year on healthcare infrastructure and disease control programs.
  8. Rs13.4 billion is allocated for the advancement of the transport and mass transit system.
  9. Funds were provided for Sindh Intra-District Peoples Bus service and fare subsidies.
  10. Green Line Bus Rapid Transit (BRT) system in Karachi is under construction, carrying 50,000 passengers per day.
  11. Red Line BRT with a development expenditure of Rs78.38 billion will serve more than 350,000 passengers per day.
  12. Rs143.57 billion is allocated for law and order, a 15% increase from the previous year.
  13. Rs10 billion is allocated for the Sindh Safe Cities Project (Phase-I) for Karachi.
  14. Salary increases: 35% for grades 1 to 16, 30% for grades 17 and above, 17.5% for pensions, and 35% for the minimum wage.
  15. Rs25.70 billion is set aside for the irrigation system.
  16. Initiatives for flood affectees, including rehabilitation and reconstruction of schools and housing projects.
  17. Funds received from Chinese grants and partnerships with organizations like JICA for flood response and education programs.
  18. Several projects support flood-affected areas, including rehabilitation, housing, water, agriculture, social protection, and health.

Revenue Receipts and Expenditures

The budget allocates Rs30 billion from the development expenditure for the district Annual Development Project (ADP). While presenting the budget, CM Shah emphasized the significance of education as the most powerful agent of change. Accordingly, an amount of Rs312.25 billion has been earmarked for the education sector, representing a seven percent increase from the previous year's budget.

Moreover, Rs214.55 billion is proposed to be allocated for non-development activities. This allocation demonstrates the government's commitment to improving the social welfare and well-being of the people. The budget also highlights the investment of over Rs233 billion in the previous fiscal year to enhance healthcare infrastructure and ensure accessible health facilities for the general public.

Focus on Education Sector

CM Shah underlined the government's determination to enhance access to equitable, inclusive, and quality education for all. The allocation of Rs312.25 billion for the education sector signifies the government's commitment to improving educational facilities and addressing the challenges faced by the education system. This seven percent increase in the budget estimates aims to uplift the overall quality of education in Sindh.

Investments in Healthcare Infrastructure

The budget emphasizes the importance of providing state-of-the-art healthcare infrastructure and accessible health facilities to the general public. In the previous fiscal year, over Rs233 billion was spent on healthcare initiatives. The government aims to continue investing in healthcare and disease prevention programs to ensure the well-being of the people.

Advancement of Transport and Mass Transit System

To improve the transport and mass transit system, the budget proposes setting aside Rs13.4 billion, reflecting a 92% increase from the previous year's budget. CM Shah's government is committed to providing safe and modern transport facilities at an affordable price to all citizens. The budget also allocates funds for the Sindh Intra-District Peoples Bus service, aiming to alleviate the impact of rising fuel and fare prices on commuters.

Green Line Bus Rapid Transit (BRT) System

The budget includes the ongoing project of Karachi's Green Line Bus Rapid Transit (BRT) system, with a cost of Rs2.36 billion. The project's corridor spans 3.88 kilometers and is expected to serve approximately 50,000 passengers daily. Additionally, initiatives to improve drainage along the corridor and extensive landscaping work worth Rs63.4 million are planned, with over 25,000 trees to be planted.

Red Line BRT System

The budget also highlights the future development of the Red Line BRT system, described as a "state-of-the-art third-generation BRT system." With an estimated expenditure of Rs78.38 billion, this project is designed to provide efficient and sustainable transportation to over 350,000 passengers per day. The government aims to ensure that the project remains self-sustaining without requiring any subsidies.

Allocation for Law and Order

Recognizing the importance of maintaining peace and security in Sindh, the budget allocates Rs143.57 billion for law and order. This represents a 15% increase over the previous year's allocation. By effectively allocating resources, the government aims to equip law enforcement and security agencies with the necessary tools and support to protect the province and maintain law and order.

Sindh Safe Cities Project

Addressing the need for enhanced security, the budget introduces the long-awaited Sindh Safe Cities Project (Phase-I) for Karachi. The project receives a substantial allocation of Rs4.5 billion for the upcoming fiscal year. This initiative aims to leverage technology and modern surveillance systems to enhance security measures and ensure the safety of residents.

Salary and Pension Increases

The budget includes favorable provisions for government employees, with a 35% increase in the basic salary for employees of grades 1 to 16 and a 30% increase for employees of grades 17 and above. Additionally, pensions are set to increase by 17.5%. These steps demonstrate the government's commitment to improving the financial well-being of its employees and retirees.

Allocation for Irrigation System

Given the challenges posed by rain and floods, the budget allocates Rs25.70 billion for the irrigation system in the next financial year. Sindh has one of the largest irrigation systems in the country, and additional funding is required to address losses caused by natural disasters. The irrigation budget encompasses silt clearance, repair and maintenance, and the Salinity Control and Reclamation Programme.

Initiatives for Flood-Affected People

The budget showcases various initiatives aimed at supporting individuals affected by last year's floods. The Sindh government has successfully secured Chinese grants amounting to Rs7,659 million for the rehabilitation and reconstruction of 646 schools. The Flood Restoration Programme and Sindh Development Through Enhanced Education Programme (DEEP) will rehabilitate 112 damaged schools using resilient and environmentally friendly fabricated structures.

Sindh Housing Project

CM Shah announced the immediate launch of the Sindh Housing Project in targeted areas for the rehabilitation of flood affectees. The project has already received $230 million, equivalent to Rs64.67 billion, for relief and rehabilitation activities. These efforts are crucial in providing housing and support to those affected by natural disasters.

Other Projects Supporting Flood-Affected Areas

Several other projects have been initiated to support the people of Sindh in flood-affected areas. These include the $500 million Flood Emergency Rehabilitation Project, the $500 million Floods Emergency Housing Reconstruction Project, the $292 million Water and Agriculture Transformation Project, the $200 million Strengthening Social Protection Delivery System Project, and the $200 million Integrated Health and Population Project.

Promotion of Agriculture Sector

The budget emphasizes the promotion of the agriculture sector in Sindh, which plays a vital role in the province's economy. To support farmers and improve agricultural practices, Rs5 billion has been allocated for various initiatives. This includes the provision of modern farming equipment, the establishment of agricultural research centers, and the promotion of crop diversification and organic farming.

Investment in Water Management

Recognizing the importance of efficient water management, the budget allocates significant funds for various water-related projects. This includes the construction and rehabilitation of canals, barrages, and water reservoirs to improve irrigation systems and ensure a sustainable water supply for agricultural activities. The government aims to mitigate water scarcity issues and enhance water resource management in the province.

Boosting Small and Medium Enterprises (SMEs)

To support the growth of small and medium enterprises (SMEs) in Sindh, the budget introduces several initiatives. These include providing financial assistance, business development support, and capacity-building programs for SMEs. The government aims to create a favorable environment for entrepreneurship and facilitate economic growth at the grassroots level.

Development of Industrial Zones

The budget emphasizes the development of industrial zones in Sindh to attract local and foreign investment and create job opportunities. The government plans to establish special economic zones (SEZs) and industrial parks equipped with modern infrastructure and facilities. These zones aim to promote industrialization, enhance productivity, and boost economic activities in the province.

Investment in Tourism

Recognizing the untapped potential of the tourism sector in Sindh, the budget allocates funds for the development and promotion of tourist destinations. The government plans to improve infrastructure, preserve historical sites, and promote cultural tourism. These efforts aim to attract domestic and international tourists, boost the economy, and create employment opportunities in the tourism industry.

Renewable Energy Initiatives

To address the energy needs of the province and promote sustainable development, the budget includes initiatives for renewable energy. The government plans to invest in solar and wind energy projects to increase the share of clean and renewable energy in the overall energy mix. This not only aims to reduce dependence on fossil fuels but also contributes to environmental conservation and the fight against climate change.

Investment in Information Technology

The budget highlights the government's focus on the information technology (IT) sector to promote digital transformation and innovation. The government plans to establish IT parks, incubation centers, and technology hubs to foster the growth of the IT industry. This includes providing support for startups, training programs, and infrastructure development to create a conducive environment for IT companies and professionals.

Promotion of Women's Empowerment

The budget emphasizes women's empowerment and gender equality in Sindh. It includes initiatives to support women entrepreneurs, provide skill development and vocational training opportunities, and enhance access to healthcare and education for women. The government aims to create an inclusive society where women can actively participate in economic, social, and political spheres.

Enhancement of Social Protection Programs

The budget focuses on strengthening social protection programs to provide assistance and support to vulnerable segments of society. This includes initiatives for poverty alleviation, healthcare coverage for low-income families, and financial aid programs for widows, orphans, and persons with disabilities. The government aims to ensure social justice and improve the standard of living for marginalized communities.

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