KARACHI: The provincial cabinet Tuesday approved budget proposals worth Rs1.71 trillion for the fiscal year 2022-23.
Sindh Chief Minister Murad Ali Shah chaired a special session of the cabinet, also attended by all provincial ministers, advisers, special assistants, chief secretaries, principal secretaries and other officers concerned.
Speaking on the occasion, CM Shah, who is also the provincial finance minister, termed the proposed finance bill as a “budget for the poor”.
“In this budget for the next fiscal year, steps have been taken for social security and economic stability,” he said, adding that this budget has been prepared after consultations with all relevant stakeholders and cabinet holders.
The budget will include a development layout of at least Rs250 billion, an allotment of Rs32 billion for district development and a 15% salary increase.
Sources within the Sindh finance department said that an amalgamation of ad hoc allowance with the basic salary is likely to be announced with the provincial budget and the Sindh government will also enhance the conveyance allowance for government employees, as provided in the federal budget.
With a 6% increase, the health sector’s budget would be around Rs19 billion, while education would see an allocation of Rs28 billion which is a 6% increase from last year.
The grant for 25 public sector universities could be increased up to 5%. At least Rs2 billion will be announced for small traders for loans from Sindh Bank and Rs3 billion has been sanctioned for the subsidy on fertiliser, seeds and pesticides.
Over Rs18 billion would be allocated for Benazir Income Support Program and a big relief package for the Information Technology (IT) sector will also be announced.
On Monday it was officially confirmed by the chief minister that the Sindh government has proposed no increase in the allocations for the IT, transport, and agriculture sectors.
CM Shah has announced relief to the IT industry by reducing the rate of Sindh Sales Tax on IT, software business and call centres from 13% to 3% without the input tax credit.
However, since large establishments prefer a standard rate with an input tax credit, they shall have the option of 13% with input tax credit facilities.
The chief minister announced this while speaking at a seminar organised by Sindh Information Science and Technology department and Pakistan Software Export Board & [email protected]