Chief Minister Sindh, Syed Murad Ali Shah, on Tuesday feared the low federal transfers may strike uplift schemes in the metropolis during the next fiscal year 2019-20 and told the Sindh Assembly about the government's financial crunch restraining funds release to development projects.
At a concluding session of the budget debate 2019-20, Murad said that his government will leave no stone unturned in completing projects under way in the city shortly. He said that the Sindh government cannot execute the Karachi Circular Railway project, costing $ 2.5 billion, from its budget and needs the federal government financial assistance to carry it out till finishing point.
He said that the K-IV project should continue to completion to cater to the city's growing water needs. He said that he was personally monitoring the progress and pace of development projects under way in Karachi but financial shortfalls may restraint his government to release maximum allocations to complete them. "But they would be completed shortly," he assured the legislature.
Pointing out at Sindh's revenue collection, he said that the province stands out among all the provinces with Rs 193 billion tax growth, that just lower from the FBR's Rs 216 billion this fiscal year. Khyber Pakhtunkhwa's total tax collection is Rs 13 billion and Balochistan Rs 6 billion, he told the house, questioning that whether Sindh surpassing the federation in revenue growth or falling short.
Murad said that Sindh was handed over just Rs 492 billion by May 31, 2019, showing worries that "How will work with this [low amount of funds]"? The CM Sindh said that the federal government has assured that Rs 200 billion more will be given to Sindh during the next fiscal year comparing this fiscal year but cast doubt whether it will be able to meet tax growth.
The federal government has collected Rs 3.27 trillion during fiscal year 2017-18 and Rs 3.31 trillion this fiscal year 2018-19, depicting a rise of 1.2 percent only, he said that Sindh posted a growth of over six percent in its revenues over the period.
In June, he said, the federal government informed that Sindh will be given Rs 632 billion but latter recounted its proposed releases to Rs 492 billion, unleashing a shortfall of Rs 173 billion in comparison to Rs 665 billion that was the actual share of the province in federal transfers. He said that the federal government still owes Rs 126 billion to Sindh.
Punjab's budgetary expenditures were Rs 126 billion out of its total Rs 238 billion under the annual development programme, but Sindh spent Rs 110 billion against the releases of Rs 130 billion. The ADP size stood Rs 252 billion in 2018-19, which now grows into Rs 223 billion for 2019-20, he said, adding that the federal government's overall collections of the federal government was Rs 4.15 trillion.
Murad said that his government had to change its primary plan to boost the employees' salaries by 25 percent after the low federal transfers struck Sindh, which made him to scale down the proposed increment raise to 15 percent. He said that the move will have an impact of Rs 26 billion on the provincial exchequer during the next fiscal year. The government has also proposed to augment the operative expenditures budget from Rs 102 billion in 2018-19 to Rs 106 billion in 2019-20.
The provincial government has allocated Rs 61 billion for different development schemes for Karachi while the federal government's allocations are Rs 12 billion, pointing that the Sindh provincial government gives a prime focus to the metropolis in its growth. "We [Sindh government] would establish Red Line with the Assistance of Asian Development Bank at the cost of $ 561 million," he said.
Regarding the GDP, the chief minister Sindh said that the federal government has revised it to 3.3 percent for the next fiscal year from already set 6.2 percent, which doubted, will ever be achieved. Inflation grew to 9.7 percent since the PTI has taken over the federal government in mid-2018 with rupee falling to 157 per dollar and shares market plunged to 35,000 points from 42,000 point. He criticised the PTI government for failing to handle the economy in a better way.
Opposition leader in the Sindh Assembly, Firdous Shamim Naqvi of the PTI in his speech said, "It is the every government's responsibility to eradicate black economy," saying that the law will take its course no matter it is Aleema Khan or anyone else to ensure accountability. He said that none of the Sindh government's departments are audited, citing the auditor general report that the provincial public accounts committee has not carried out any discussions between 1992 and 2018. He warned that the public accounts committee should hold discussions or face accountability.
He also appreciated Sindh Education Minister, Sardar Shah for his openness to acknowledge the academic crisis at the primary and secondary levels, saying that the Chief Minister Sindh should step up to salvage the ill public education sector. He said that only 47 percent children at the secondary school are enrolled, which is worrisome for the province, saying that the education ratio fell over the past one year. He said that the city's water demand is not met, saying that the Sindh government should explain why it lacks a plan to overcome the crisis. He said that the Kalabagh Dam should not be constructed unless nationwide agreement is reached.
The house also approved 66 demands of the Sindh government for a supplementary budget of Rs 71.617 billion and turned the opposition's 73 cut motions. The opposition members mainly from GDA, Muhammad Shaharyar Khan Mahar, Nusrat Sehar Abbasi and Nand Kumar tabled their cut motions asking the government to reduce its spending in different heads since the province has fallen short of revenues. The house will vote on the next fiscal year budget 2019-20 on Wednesday morning.
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