Sindh Chief Minister Syed Murad Ali Shah recently presented the provincial budget estimates for the fiscal year 2025-26 in the assembly, amounting to Rs. 3,451.87 billion. This budget marks a 12.9% increase compared to the previous year, with a deficit of Rs. 38.458 billion. The focus of the budget is on key sectors such as education, health, infrastructure, and social welfare.

Key Features of Sindh Budget

• Abolishment of 5 levies including Professional Tax and Entertainment Duty
• Reduction in motor vehicle taxes and simplification of sales tax through a Negative List system
• Proposed salary increase of 12% to 10% for government employees and 8% pension increase
• Enhanced conveyance allowance for differently-abled employees and clearance of outstanding pension dues
• Allocation of Rs. 146.9 billion as grants-in-aid for health units and institutions
• Allocation of Rs. 523.73 billion for the Education sector, a 12.4% increase from the previous year

The budget aims to modernize governance, stimulate economic growth, and ensure increased allocations for education, health, and social welfare. It also includes strategic initiatives to drive inclusive and sustainable development in the province.

Budget Breakdown

The province's receipts for FY 2025-26 are projected at Rs. 3,411.5 billion, marking an 11.6% increase from the current year. Federal divisible pool transfers are estimated at Rs. 1,927.3 billion, constituting 75% of total revenue. Additional federal transfers are set to increase, bringing total federal transfers to Rs. 2,095.6 billion.

The Current Revenue Expenditure (CRE) is set at Rs. 2,149.4 billion, reflecting a 12.4% increase from the previous year. This rise is attributed to inflationary pressures, increased grants to non-financial institutions, salary relief allowances, and higher pension payments.

Expenditure & Sectoral Allocations

Total expenditure is expected to increase by 12.9% to Rs. 3,450 billion. Current revenue expenditure will grow by 12.4% to Rs. 2,150 billion, driven by salary and pension hikes, grants to local bodies, and significant increases in key sectors like the Police Department, Health Sector, and Education Sector.

Major allocations include Rs. 20 billion for Pro-poor Social Protection and Economic Sustainability Initiatives, highlighting the government's focus on inclusive growth. Funds for education-related initiatives will be directly disbursed to schools to enhance transparency and efficiency.

Education Sector

The education sector has received an allocation of Rs. 523.73 billion, a 12.4% increase from the previous year. New initiatives include staff hiring, establishment of community colleges, and empowerment of primary schools. Additionally, Rs. 2 billion has been allocated for the Sindh Educational Endowment Fund to support meritorious and underprivileged students.

Health Sector

The budget for health is set at Rs. 326.5 billion, with key allocations for health units and institutions. Initiatives include support for SIUT, PPHI, and a new hospital in Larkana. The focus will be on expanding healthcare access in rural areas through ambulance services and mobile diagnostic units.

Source: The Express Tribune