Sindh govt unveils budget for FY22 with Rs1.47tr outlay, announces Rs25,000 minimum wage

Chief Minister Syed Murad Ali Shah, who is also the Finance Minister Sindh, has begun his speech in English language amid noise of the opposition members. He said the annual budget is 19.1 per cent more in total outlay as compared to the budget of previous fiscal year. 

Opposition members are carrying placards and banners inscribed with anti-government slogans. Shah said the annual budget is a budget with estimated deficit of Rs25 .7 billion, adding the province is expected to have provincial receipts of Rs329 billion. The current expenditure for the next fiscal is estimated at Rs1.08 trillion in the new fiscal year.

The chief minister said the government has decided to reduce annual expenditure up to 34 per cent in the next fiscal year and adopt simplicity in the affairs of governance. There is no new tax proposed in the budget.

“A grant of Rs82 billion for local bodies councils has been reserved, while an amount of Rs10 billion has been allocated for law and order and police in the budget,” Shah said.

The government has proposed Rs222 billion with 43 per cent increase for the Annual Development Programme (ADP) out of which 57 percent amount will be spent on education, health and social sector.

The Sindh will receive Rs848 billion share under the federal divisible pool.

For education the government has allocated Rs277 billion and for health an amount of Rs172 billion has been earmarked.  

The government has enhanced minimum wage from Rs17,500 to Rs25,000 for unskilled labours and announced 25 per cent raise in pays of government servants. In order to remove disparity between the pays of government officials and minimum wage of Rs25,000, the Sindh government will give personal allowance except police to the government servants.   

Shah said a comprehensive response by the provincial government had been prepared to battle the Corona pandemic, announcing allocation of Rs24.72 billion to counter the adverse impact of the coronavirus pandemic.

"An amount of Rs18.32bn have been recommended to buy medicines throughout the year, and that the provincial government has also agreed to create 964 new posts for the health sector." 

The chief minister announced that the government had allocated Rs2 billion to procure PPE and PCR testing kits. 

The government has proposed Rs14 billion for transport, Rs75 billion for local bodies and Rs53 billion for the irrigation department. 

Other alllocations include Rs3 billion for agriculture, Rs16 billion for citizens' welfare, Rs3 billion for industrial development, and Rs30.9 billion for the social protection of the poor and their ecoonmic stability.