Sindh cabinet gives its nod to FY2020-21 budget
The Sindh Cabinet on Wednesday approved budget for the new financial year FY2020-21, reported 24NewsHD TV channel.
The Sindh cabinet decided to increase the salaries of government employees by 5 percent.
The Sindh budget for the financial year 2020-21 will be presented today in an online session that is being held for the first time in the parliamentary history of Pakistan.
The total volume of the provincial budget will be Rs1,224 billion. The target of provincial revenue will be higher than the previous year.
Sindh has been facing more than Rs742 billion in revenue and Rs250 billion in deductions from the federal government in the new fiscal year's budget due to which the overall volume of Sindh budget is also expected to decrease.
Due to the coronavirus, Sindh government will set a revenue target of Rs275 billion for FY 2021.
The Sindh government has decided not to impose any new tax in the budget for the new financial year.
Sindh People's Support Cash
Sindh government has made allocations to start Sindh People's Support Cash Programme in Sindh in line with the Ehsaas Emergency Cash Programme.
The economic relief package of more than Rs30 billion will be part of the budget proposals, including lending to small business people.
The non-development expenditure of the Sindh government should be estimated at more than Rs960 billion.
In next financial year 2020-21 budget, it has been proposed to allocate Rs15 to 18 billion for the purchase of new vehicles and furniture and 5 to 10 percent increase in government employees’ salaries and pensions.
The annual budget proposes a 25-30 percent cut in development programme with an allocation of Rs165 billion in ADP. Rs 150 billion will be allocated for provincial development projects.
Rs110 billion have been likely to be allocated for the health sector in non-developmental terms. Rs20 billion will be allocated in the budget to deal with the coronavirus emergency.
It is proposed to allocate Rs25 billion for the development in the health sector and Rs190 billion for the education sector.
It is proposed to allocate Rs110 billion for law and order.
Sindh government will not impose any new tax in the new financial year's budget. The budget proposes to provide small loans in the fields of agriculture and IT. Rs 5 billion will be allocated in the budget for lending to small farmers from Sindh Bank of Pakistan. Rs 15 billion is likely to be allocated for district development projects.
Earlier, Sindh Chief Minister Murad Ali Shah said that the coronavirus had not only affected the people but it had badly affected the budget estimates for the next year. “Despite critical conditions, I will try my best to provide relief to the poor people of the province through budgetary measures,” the CM said.
He said that in the next budget priorities would be given to the health sector under which new facilities would be established. “We have to contain the virus which is spreading throughout the province,” he said.