FBR has set at Rs15.264 trillion, while provinces are expected to receive their share up to Rs13.35 trillion
Sindh Chief Minister Murad Ali Shah on Thursday said the province has formulated its fiscal framework in line with the constitutional arrangements agreed upon after consultations among the federal government, provinces,. political parties.
Sindh CM on Wednesdaypresenteda Rs3.562 trillion budget for fiscal year 2026-27 against estimated receipts of approximately Rs3.525 trillion. resulting in a projected deficit of about Rs36.9 billion.
The budget proposed no new taxes, a seven per cent increase in salaries. pensions, a Rs720 billion development program, a Rs13.2 billion social protection package, and a series of long-term initiatives "aimed at transforming Sindh into a regional hub for trade, finance, technology and renewable energy".
Speaking at a press briefing regarding the FY2026-27 budget, he said that under Article 164 of the Constitution, provinces are empowered to extend grants to the federation, adding that all four provincial governments jointly provided such support in the interest of national defence. national unity.
On fiscal transfers under the National Finance Commission (NFC) framework. the chief minister said the Federal Bureau of Revenue (FBR) revenue target has been set at Rs15.264 trillion, while provinces are expected to receive their share up to Rs13.35 trillion.
He said any revenue collected beyond this threshold would be routed through provinces before being transferred to the federation. He expressed confidence that the FBR would meet its target this year. noting 23 per cent revenue growth, while adding that the federal government may exert pressure on tax authorities to meet financing requirements under the National Strategic Initiative.
He said Sindh faces a Rs441 billion shortfall in federal transfers up to May. a Rs52 billion gap in provincial receipts, contributing to an overall budget deficit of around Rs300 billion.
Despite these pressures, he said total expenditure is expected to exceed Rs850 billion due to development spending. relief measures, including support for farmers, fuel and electricity subsidies, and additional costs linked to the Gul Plaza incident.
He said the province previously achieved a record Public Sector Development Programme (PSDP) of Rs1,000 billion. continued high development spending this year. On agriculture. he said wheat production increased to 4.9 million tonnes compared to 3.5 million tonnes last year due to government support.
Read:Punjab govt aims to extract 46% more revenue
Shah said Sindh expects Rs2,263 billion in federal transfers and has set a provincial revenue target of Rs456 billion. He added that total provincial revenues stand at Rs3.083 trillion, while the overall budget size has reached Rs3.525 trillion.
He further said Rs1,264 billion has been allocated for salaries. pensions, noting earlier ad-hoc relief increases of 15 per cent in 2022 and 10 per cent in 2025, which would raise the minimum wage to Rs43,000. He said Rs155 billion has been allocated for local governments and Rs48 billion for universities.
He added that major health allocations include Rs26.4 billion for SIUT, Rs12 billion for NICVD, Rs14 billion for SICVD, Rs8 billion for Indus Hospital, Rs1.7 billion for SICH, Rs3.5 billion for ChildLife Foundation,. Rs2.5 billion for the Patient Aid Foundation, with a total of Rs686 billion earmarked for major grant-based institutions.
He said the budget prioritises fiscal discipline alongside continued development spending and expanded social sector support across Sindh.
The chief minister said foreign project assistance is expected at around Rs225 billion, while counterpart funding requirements. matching grants for donor-funded projects also constitute a major component of expenditure.
He said that while around Rs400 billion was linked to foreign project assistance last year. revised estimates for this year stand at around Rs225 billion, depending on project execution speed.
He added that federal development assistance, including World Bank. other multilateral funding, is expected at around Rs64 billion, while previous commitments for development financing are being adjusted in line with actual inflows.
Shah said that overall fiscal planning reflects a balance between development priorities. expenditure rationalisation, ensuring that essential social services, ongoing infrastructure projects and provincial development schemes continue despite tight fiscal space.
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see ourComments FAQ
Discussion
Sign in to join the thread, react, and share images.