KARACHI:Sindh Chief Minister Syed Murad Ali Shah presented the provincial budget estimates for the fiscal year 2025-26 in the assembly amounting to Rs3,451.87 billion, with a deficit of Rs38.458 billion-representing a 12.9 per cent increase compared to the previous year’s budget estimates of Rs3,056.3 billion for FY 2024-25.
The CM announced a salary increase of 12 per cent for employees in grades BS-1 to BS-16 and a 10 per cent raise for those in grades BS-17 to BS-22, along with an 8 per cent increase in pensions. “We are introducing a finance bill to abolish and decrease some taxes/levies/cess instead of increasing them,” the Chief Minister stated.
The budget emphasises increased allocations for education, health, infrastructure, and social welfare, along with strategic initiatives to modernise governance and stimulate economic growth.The province’s receipts for FY 2025-26 are projected at Rs3,411.5 billion, marking an 11.6% rise compared to the current year.
Federal divisible pool transfers, which constitute 75 per cent of total revenue, are estimated at Rs. 1,927.3 billion, a 10.2 per cent increase, despite a 5.5 per cent shortfall in the current year’s revised estimates.
Additional federal transfers, including straight transfers and grants to offset losses from the abolition of the OZT, are also set to increase, bringing total federal transfers to Rs2,095.6 billion.Current Revenue Expenditure (CRE) Set at Rs. 2,149.4 billion, reflecting a 12.4 per cent increase from Rs1,912.36 billion in FY 2024-25.
This rise is due to inflationary pressures, increased grants to non-financial institutions such as hospitals and universities, salary relief allowances for government employees, and higher pension payments.
Total expenditure is expected to increase by 12.9 per cent to Rs3,450 billion. Current revenue expenditure will grow by 12.4 per cent to Rs2,150 billion, driven by salary and pension hikes (6%), grants to local bodies (3%), and substantial increases in key sectors:
Additionally, Rs20 billion has been allocated for “Pro-poor Social Protection and Economic Sustainability Initiatives,” highlighting the government’s focus on inclusive growth. To improve transparency and efficiency, education-related funds will be directly disbursed to schools.
Grants-in-aid totaling Rs702 billion have been allocated for various government and non-financial institutions, based on directives from the Chief Minister’s Secretariat and the Finance Department.
