Sindh Chief Minister Syed Murad Ali Shah has threatened that PPP will not support the federal budget if their demands, including withdrawal of proposed 18 percent tax on solar panels, are not fulfilled by the Centre.Addressing his post-budget press conference in Karachi on Saturday, CM Murad Ali Shah said “Sindh is not a colony of the Federation as the province is not getting its full share from the Centre.” 

Putting up a long list of complaints against the Centre, the chief minister said first Rs30 billion were allocated for Hyderabad-Sukkur Motorway and this allocation was reduced to Rs15 billion. “If the trend persists this project would not complete even in next 12 years,” he added. Murad Ali Shah said making the provincial budget for the next financial year (FY), 2025-26, was not a cakewalk.

He said that one day prior to the day he was going to make the budget speech, he was told by the federal government through a letter that the Center would not give Rs1,901 billion, but Rs1796.1 billion to the province, which was Rs105 billion less than what the province was going to receive from the federal government. “We collect taxes for the Center. But the latter reduced our share,” he said, adding, “This will definitely adversely affect the development budget for the next FY.

We planned to announce a surplus budget this year. However, the federal government’s decision did not allow this to happen.”  He said that the provincial government was about to complete 1,400 development projects during the ongoing FY. He informed that Rs1,018 billion had been earmarked in the budget for development projects in the next FY. The chief minister said that as per the terms and conditions reached with the IMF, provinces have to save amounts rather than spending them.  

He further said that despite so many constraints, the provincial government announced 12 per cent raise in the salaries of government employees. “The officers of grade 17 and above will get a 10 per cent raise in their pay, while their pensions have been upped by eight per cent.” CM Murad said that education topped the list of the provincial government’s priorities, followed by health. “Next came the turn of local bodies and interior,” he added. He went on to say that the budget for the energy sector was increased.

“We have cut non-development expenditures.” The chief minister informed that Rs103 billion would be spent on the education sector in the next financial year, while Rs132 billion on local government (LG).  He said that there was less production of important crops this year. “We have also given priority to the agriculture sector in the budget.” CM Murad informed that there were special instructions from PPP Chairman Bilawal Bhutto to give priority to clean drinking water in the budget.

“An amount of Rs90 billion has been set aside for water schemes.” He told the media men that hefty amounts had also been allocated for Karachi in the budget.  He lamented that the opposition raised a hue and cry over what it called a lesser allocation of money for Karachi. “This it did without going through the document. Read it properly and you will come to know what is written in it,” he said, adding, “Karachi is my city. And I have never thought of neglecting the city.” 

Answering the objections raised by the opposition, the chief minister said that the construction of Shahrahe Bhutto had been completed up to Quaidabad locality of the city. “The project will cost the government Rs65 billion,” he said, and added, “Marble City is another scheme which is meant for Karachi.”  “Rs54 billion will be spent on different schemes in the port city under the public-private partnership,” he informed. The chief minister informed that Rs236 billion would be spent on the provincial capital’s development projects in the next fiscal year. 

The total volume of the next FY’s budget is Rs3.45 trillion. “Out of which, an amount of Rs1 trillion has been earmarked for development purposes.” He informed that presently the provincial government’s expenditures stood at Rs2.150 trillion. “A large chunk of this amount is spent on the salaries and pensions of the government employees,” he said, adding, “Rs1.1 trillion will be spent on the payment of salaries and pensions in the next financial year.” 

Despite difficulties, the CM went on to say, the provincial government took a difficult decision of increasing the salaries of its employees, from grade 1 to grade 16, by 12 per cent.  “We have allocated 11 per cent more amount for the health sector in the budget for the next FY,” he said, adding, “The amount earmarked for the LG is up by five per cent; for home department by 15.50 per cent, and for the energy sector by 16:50 per cent.” 

Likewise, the chief minister added, the budget for the agriculture sector had been increased by Rs16 billion. He informed that under its housing scheme, the provincial government had so far allotted 500,000 homes to the deserving people, while 800,000 were near completion. “The World Bank MD has herself witnessed these homes,” he said, adding, “Not only were homes built, but the people were also given their ownership rights.” 

CM Murad claimed that nowhere in the world, the construction of houses had been completed at such a brisk pace. He informed that the government planned to provide clean drinking water to 45,000 villages in Sindh. He said that no new tax had been imposed in the budget. “The government has reduced tax on restaurants.”

Credit: Independent News Pakistan (INP)