Current revenue expenditure and provincial annual development programme swelled to Rs 315.3 billion and Rs 231 billion, respectively. Presenting the budget during the Sindh Assembly session which deputy speaker Shehla Raza chaired, Sindh Finance Minister Syed Murad Ali Shah unveiled a Rs 577.984 billion outlay for the fiscal year 2012-13, with estimated revenue of Rs 570.817 billion, making it a over Rs 7 billion deficit budget. "I feel privileged to stand before this august house to present the fifth budget of this democratically elected government in Sindh. I am pleased to present this budget free of any new taxes," he said.
The province's expenditure for the new fiscal year is higher by Rs 83.85 billion if compared with revised estimates of Rs 494.154 billion of the current fiscal year. The budget expenditure for the next fiscal year is also higher by Rs 120.477 billion as against the actual budget estimates of Rs 457.547 billion of the current fiscal year. The Sindh province had its revised budget for the current fiscal year with Rs 1.2 billion surplus budget as against Rs 882 million of surplus amount, which was announced for fiscal year 2011-12.
The Sindh's total receipts are estimated at Rs 570.817 billion for the next fiscal year, which is Rs 75.390 billion higher than the revised estimates of Rs 495.428 billion of the current fiscal year. The province's total receipts for the next fiscal year include Rs 478.544 billion of current revenue receipts, Rs 28 billion of current capital receipts, against Rs 323.183 billion of current revenue expenditure and Rs 16.393 billion of current capital expenditure of revised budget for current fiscal year.
Under other receipts, the Sindh government estimates to receive Rs 50.174 billion during the next fiscal year while for the current fiscal year it estimated Rs 30 billion. The current revenue receipts include Rs 314.366 billion of revenue assignment, Rs 59.252 billion of straight transfer, Rs 8.292 billion of grants of Rs 41.189 billion of provincial tax receipt (excluding on GST on services, Rs 32 billion provincial sales tax on services and Rs 23.44 billion of provincial non-tax receipts).
The current capital receipts are estimated at Rs 6.9 billion of local loans/repayments, Rs 9 billion of World Bank loan, Rs 1 billion of EU Commission grant and Rs 11.17 billion of ADB funding. Other receipts include: Rs 18.47 billion of foreign project assistance, Rs 17.187 billion of Flood Emergency Reconstruction Project (FERP) and Rs 14.51 billion of other federal government's grants. Total receipts for the next fiscal year also have a carryover cash balance of Rs 5 billion and net public accounts Rs 8.9 billion.
The current revenue expenditure have been estimated at Rs 315.301 billion for next fiscal year compared with Rs 309.458 billion of current fiscal year revised estimates, depicting a rise of about Rs 11 billion. Current capital expenditure has surged to Rs 31.5 billion for fiscal year 2012-13 from Rs 28. 83 billion of current fiscal year.
Annual Development Programme (ADP) has been estimated at Rs 231.174 billion for the next fiscal year against the revised estimates of Rs 155.86 billion of the current fiscal year, showing an increase of Rs 75.31 billion. Expenditure of ADP includes Rs 181 billion of provincial Annual Development Programme, excluding federal project assistance and FERP, Rs 35.65 billion of foreign project assistance and Rs 14.51 billion for other grants.
For the next fiscal year, the Sindh government has not earmarked a single penny for drought emergency relief assistance, while for the current year it was Rs 23 million in the revised budget estimates. Murad Ali Shah said the PPP-led government faced scores of obstacles including the mismanagement of the past government and natural calamities which hampered the development process.
He lauded the support from sitting provincial legislators of his own PPP, MQM, ANP, PML-F, NPP and PML-Q, saying their contribution and consistent support helped his department evolve the fiscal budget for fiscal year 2012-13. He told the House that floods and rains wrecked miseries on people of the province, besides the natural calamity hit the development projects as the province economy suffered severely, consequently. "The Sindh government immediately undertook a large scale emergency response to the disaster," he added.
The Provincial Development Portfolio for the financial year 2012-13 has been projected at Rs 231 billion. The revival of production sector along with augmentation of physical, economic and social infrastructure will supplement the efforts to address the surging poverty and unemployment in the province, he added.
He said the portfolio tackles inter-district differential in development through judicious allocations. "Substantial 70 percent of ADP allocation was made to complete the ongoing schemes," he said, adding that this strategy will help complete 700 schemes during the financial year 2012-13. He enumerated some of the major initiatives for the next financial year including, agriculture credit line for small farmers at 7 percent interest subsidy through Sindh Bank at a cost of Rs 4,000 million.
In addition: micro finance for enterprise development through STEVTA and Sindh Bank at a cost of Rs 2000 million, provision of assistance to farmers for purchase of 15000 tractors at a cost of Rs 2800 million, besides a subsidy for 6000 tractors during current year, K-IV and S-III projects, Karachi circular railway, restoration/rehabilitation of LBOD and Kotri drainage network including activation of Dhoras.
It also includes establishment of multi-organ transplant center at Sindh Institute of Urology and Transplantation (SIUT), Karachi at a cost of Rs 5000 million, setting up of Shaheed Benazir Bhutto International University of Veterinary and Animal Sciences main campus in Sakrand and campus in Larkana at a cost of Rs 3000 million.
Establishment of drinking water hubs rehabilitation of roads damaged during rains in 2011, food grain storage project. The government is also considering provision of targeted subsidy through the BISP for subsidised provision of essential commodities, he said.
The Finance Minister said the government has proposed Rs 13.69 billion including ADP of Rs 10.9 billion for the agriculture sector of the province for financial year 2012-13, with a view to fighting poverty and address the issues of growers. He said the allocation is 350 percent higher if compared with the financial allocation for agriculture sector in budget 2007-08.
"The government remains committed to its 'pro-Hari policies' for generating employment in on-farm and off-farm activities and providing raw material for industry and exports," Murad said. He said after disaster in 2011, the government of Sindh introduced a relief package of Rs 2 billion for the affected growers in the province. He said under the package, the government provided about 55,000 tons of wheat seed, 23,000 tons of urea and 500 tons of sunflower seeds to the flood victims.
Major schemes proposed for the next financial year include: Sindh Bank will manage agriculture credit line for small farmers at 7 percent interest subsidy at a cost of Rs 4 billion. The allocation for current year is Rs 2 billion. He said the government will extend subsidy assistance on agriculture implements for farm mechanisation with Rs 100 million budgetary allocations for the next fiscal year.
Similarly, Sindh on-farm water management project will receive an allocated amount of Rs 740 million, while the government will set up an agro export processing zone for fruits, vegetables, flowers and allied products, he added. He said other proposed initiatives in agriculture sector are the purchase of bulldozers for agriculture sector, starting of community integrated pest and plant nutrition management, construction of Mirchi Mandi in Kunri and modernisation of training and research facilities in agriculture engineering workshop in Nareja.
About development schemes for minorities, Murad Ali Shah said the government has proposed to enhance the allocation to Rs 720.00 million which is 650 percent greater to the allocation of Rs 110 million made for the current fiscal year. For development of irrigation and drainage sector, he said the government has proposed Rs 7.5 billion in the fiscal budget 2012-13, which is almost twice the ADP earmarked in the fiscal year 2011-12 and nine times greater of allocation in budget 2007-08.
The government proposed Rs 49.52 billion for the healthcare sector of the province in the next fiscal year budget including ADP of Rs 14.80 billion. For education sector, the government has proposed Rs 111.96 billion including ADP of Rs 12.39 billion in the next fiscal year's budget, he added.