M. M. ALAM
KARACHI: Senior Minister for Finance Syed Murad Ali Shah, presenting Rs. 869.12 billion (17.5% increased) Sindh budget for 2016-17 here at Sindh Assembly on Saturday, pointed out that no new tax has been introduced. He held that it was meant to provide relief to the common people. Sales tax has also been decreased from 14% to 13%.
Minister said that the total revenue expenditure is estimated to grow by 13.8 percent to 572.76 billion rupees in 2016-17. Significant amounts set aside include Rs. 160.7 billion for education sector and Rs. 55 billion for health sector. (Harboring on the topic of health the Minister also noted that there has been a significant decrease in Polio cases last year).
Highest revenue generating Metropolis is to receive a special package of Rs. 10 billion for important infrastructures. (Rs. 80 crores will be spent on construction of a fly-over near Shaheen Complex; an underpass is to be constructed at Punjab Chowrangi. Shahrah-e-Faisal will also be expanded from Metropole to Star-gate. The condition of various roads will be ameliorated that also include the road from NIPA to Hasan Square and from NED to Safora Goth).
Funds for Sewerage Plan S-III and Water Supply project K4 has been allocated along-with the scheme of new pumping station at Dhabeji.
Police and Home Ministry will jointly get Rs. 70 billion. Rs. 5 million has been set aside to compensate the policemen killed in the line of duty. 20,000 personnel will be induced in Sindh Police. Overall 50,000 new jobs will be created.
Regrettably, in the last FY several development projects remained incomplete as a result only Rs. 86 billion out of Rs. 162 billion had been utilized. Nevertheless, this FY’s annual development budget has been increased to 38 percent i.e.: Rs 224 billion. Rs. 503 bn had been allocated for non-development expenditure.
Districts will receive Rs. 42 bn for local bodies up and above Rs. 225 bn allocated for Annual Development Program (ADP).
Focusing on the energy sector Minister said that Rs. 6.335 bn has been earmarked for energy projects for the next FY. Rs. 4.635 bn is meant for new projects while Rs. 1.7 bn has been set aside for two ongoing schemes.
Announcing creation of an entity Thar-Coal Infrastructure Development the Minister said that Rs. 15.365 bn has been kept under the head: Rs. 3.09 bn will be used for 10 new schemes and Rs. 12.27 bn for seventeen ongoing projects.
Commenting on Sindh Engro Coal Mining Company (SECMC), the Minister told that the joint venture company of the Government of Sindh (holding 54% share), Engro Powergen and others was working on Block-II of Thar.
The Sindh government has committed Rs11bn as its equity share. The provincial government has given primary obligation to the federal government for sovereign guarantee of $700 million for the mining project in the block. It has committed Rs70bn to build required infrastructure.
By and large the opposition has rejected the budget. MQM’s Khawaja Izhar-ul-Haq held that the Finance Minister is not aware of the ground realities. For instance, he is oblivious of the fact that the price of vegetable has gone up by 30% during Ramadan and thus he has not bothered to address the matter of provision of relief to the common people in this holy month. Khawaja Izhar-ul-Haq said that the ‘percentage mafia’ has been accommodated in the budget. Noting that no fund has been allocated to build hospitals in places like Thar, he pointed out that no mega projects have been announced for rural areas.
