Sindh has recorded growth in its tax collections thanks to the government’s fiscal reforms over the last five years to mobilise revenues. “The reforms in the fiscal side of the province were introduced and implemented to curtail the budget deficit and arrange more funds for the development projects,” said Nadir Jatoi, Director of the Finance Management Wing. He said that because of these reforms, the provincial tax collection surpassed its target for the financial year 2022-23 with an “unprecedented” monthly revenue collection of Rs24 billion in June 2023. “Total collection for the year was Rs185.3 billion, crossing the assigned revenue target of Rs180 billion.” He noted that the province also had record tax collection of Rs21.3 billion for December 2023, registering a 22% growth compared to Rs17.5 billion collected in December 2022, whereas the total tax collection in the first six months (July-December) of the current financial year 2023-24 reached Rs108.6 billion, up by 35% from Rs80.2 billion in the same period last year. He attributed the “phenomenal revenue growth” to the continued cooperation of taxpayers, reforms in the tax collection machinery, and tireless efforts of the provincial tax collection board.

Jatoi hoped that the province would achieve the revenue target of Rs235 billion for the ongoing financial year, despite facing challenges like economic slowdown and a stagnant tax base. Bashir Soomro, Director of the Policy Wing Finance Department, Sindh, said the fiscal reforms were needed to be implemented as the province had been spending huge sums of money on development projects. Soomro said despite being entangled by multiple crises, the Sindh government proved to be a responsible federating unit and consented to fiscal management to maintain a cash surplus of Rs184.125 billion for the FY23, according to the federal government’s commitments with IMF to secure required bailout package. “We have revised the development portfolio and set priorities aligned with the emerging post-flood demands. We recognised the need for adaptability and strategic decision-making. We carefully evaluated our priorities, ensuring that every rupee invested delivered maximum value,” he said. Soomro said that the people of Sindh were the main focus of the provincial government to uplift them socially and economically.

Credit: Independent News Pakistan