The Provincial Budget 2006-07 is a Rs 302.24 million surplus budget, as the total estimated receipts stand at Rs 193.40 billion. The opposition members led by Nisar Ahmed Khuhro staged walkout from the house following a worst nature of uproar created by them. They were chanting slogans against the deteriorating law and order situation, price hike, Kalabagh Dam and Thal Canal. The opposition members carrying placards kept on standing during their stay in the house.
Syed Sardar Ahmed delivering his budget speech said the general revenue receipts are Rs 147.63 billion, 16.265 percent higher as against the overall revised estimates of Rs 126.962 billion. Budget includes the highest-ever Rs 50 billion pitched in for the Development Programme comprising Rs 24 billion for the Provincial ADP, Rs eight billion for the District ADP (already dispatched), Rs 5.3 FPA, Rs 10.5 billion federally assisted projects, Rs 250 million Drought Emergency Relief Assistance (DERA) and Rs 1.95 billion for SDSSP.
The revenue receipts include Rs 63.468 billion Divisible Pool Tax transfers and Rs 5.83 billion federal grant-in-aid, being given as per new order 2006. It also includes straight transfers comprising royalty on oil and gas, excise duty and surcharges on gas of Rs 37.90 billion against the revised estimates of Rs 37.146 billion and district support grant estimates at Rs 18.606 billion.
The province's own receipts are pitched at Rs 22.808 billion against the revised estimates of Rs 18.381 billion. The current capital receipts are estimated at Rs 9.248 billion and the capital expenditure is expected to be Rs 11.727 billion with a deficit of Rs 2.47 billion.
For 2006-07, combined share of local governments is estimated at Rs 56.754 billion as against the revised estimates of Rs 52.833 billion for 2005-06 with an increase of 7.4 percent. Local governments are being provided with their funds in accordance with Provincial Finance Commission (PFC) formula. As per existing formula population, backwardness, and tax collection are the major criteria including some funds on transition basis and five percent on the basis of performance.
General revenue expenditure for 2006-07 is estimated at Rs 139.224 billion against the revised estimates of Rs 126.184 billion for 2005-06, an increase of 10.3 percent over the revised estimates. The major functional allocations include Rs 21.121 billion for general administration, Rs 17.763 billion for law and order, Rs 3.494 billion community services, Rs 19.367 billion social services, Rs 9.266 billion economic services, Rs 0.940 billion subsidies, Rs 10.326 billion Debt Servicing and Rs 56.948 billion for local governments and other unallocable.
"The Budget 2006-07 is a tax-free budget and no new taxes are envisaged. However, with a view to rationalise and simplify some of the existing tax instruments some of the rationalisation measures are being introduced through Finance Bill 2006," Sardar Ahmed said.
Explaining, he said that stamp duty paid on allotment order or transfer of allotment order issued by developer, builder etc is being abolished for all flats irrespective of their size, bungalows, residential houses and built up commercial premises. This is being done to simplify the process of allotment, he said.
He said that the stamp duty on articles of association and memorandum of association at the time of registration of new companies is being abolished to facilitate greater registration of new companies in the province.
Stamp duty on mortgage deed with and without possession are being reduced from five percent to three percent and from 4.2 percent to two percent respectively for bringing these at par with stamp duty on conveyance deed, Sardar Ahmed informed. With a view to streamline collection of motor vehicle tax, the categories of vehicles are being reduced from 40 to 11 to simplify collection. While stamp duty on power of attorney authorising the attorney to sell immovable property is being reduced from five percent to three percent to bring it at par with stamp duty on conveyance deed, he added.
The Sindh government has increased water sector allocation from Rs 888 million to Rs 1.5 billion for facilitating early completion of programmes. Sardar Ahmed informed the house that development budget for the agriculture sector for 2006-07 has been increased by 103 percent while that of forest, wildlife and the CDA sector has been raised by 23 percent.
For overcoming water constraints, the Sindh government is introducing new technologies of drip and sprinkler irrigation through a new project titled "High Efficiency Irrigation System" costing Rs 134.34 million, which would be made available to farmers at subsidised rates ie 80percent cost will be borne by the Sindh government and only 20 percent by the growers.
For the coming year the Sindh government would invest around Rs 6.5 billion in the road sector both through normal allocation of Rs 4.5 billion and Rs two billion through ADB assisted Sindh Road Sector Programme.
On the side of education, the Sindh government has enhanced the education budget by three times from Rs 4.1 billion to Rs 12.7 billion for improving service delivery. The existing incentive programmes will continue and will be further refined.
The minister said that the health development budget is being raised to Rs 850 million against the revised budget of Rs 750 million.
In order to bring the salary of the police staff in Sindh at par with those in Punjab, an amount of Rs 500 million has been allocated in the new budget.
"In pursuance of Government of Pakistan's announcement, the Sindh government would be increasing the pay of government employees with effect from July 2006.
Speaker Muzaffar Hussain Shah was in the chair. Immediately after the presentation of Finance Bill, he adjourned the session to meet again on Monday at 9:30 am.