Sindh Chief Minister (CM) Murad Ali Shah unveiled a Rs3.451 trillion provincial budget for 2025–26 on Friday amid loud opposition protests. According to data from reports, this marks a 12.9 percent jump from fiscal year (FY) 2024-25’s Rs3.056 trillion budget. 

 

Sindh’s CM outlined that the province intended to run a budget deficit in FY 2025-26. Reports reveal that outlays exceed receipts, causing the projected deficit to stand at a whopping Rs38 billion.

 

As per CM Sindh, government employees in grades Basic scale-1 (BS) to BS-16 will receive a liberal 12 percent raise in salaries. However, officers in BS-17 to BS-22 are set to get a slightly lower, yet respectable, 10 percent hike in salaries. 

 

Details from the provincial budget suggest that retirees will see an 8 percent spike in their pensions. In addition, CM Sindh confirmed that from the start of the upcoming fiscal year, Sindh Assembly members' salaries will be aligned with those of lawmakers in other provinces.

 

According to CM Sindh, certain taxes and levies would be reduced under the newly introduced Finance Bill. The aforementioned duties include professional tax, cotton fees, entertainment duty, drainage cess, and local cess, which will all be abolished. For reference, the term ‘cess’ refers to a type of tax imposed by the government for a specific purpose and remains in effect until sufficient funds are collected for that purpose.

 

As per data from reports, approximately 75 percent of the revenue will come from federal transfers. Sindh anticipates total receipts of Rs3.41 trillion in FY 2025-26, which translates into a rise of 11.6 percent compared to the outgoing fiscal year. 

 

Reports reveal that transfers from the federal divisible pool alone are projected at Rs1.927 trillion, indicating a rise of 10.2 percent from FY 2024-25. Additional federal funds are expected to push receipts from Islamabad up to Rs2.095 trillion. These additional funds are to be expected in the form of transfers and compensatory grants for the abolished Octroi and Zila Tax (OZT).

 

Current revenue expenditure is expected to reportedly reach Rs2.149 trillion. This marks a 12.4 percent increase on a Year-on-year basis. The education sector has received an allocation of Rs523.7 billion, compared to Rs458.2 billion last year. This accounts for 25.3 percent of the total current revenue expenditure.

 

All tiers of the education sector have witnessed a boost in their budget. As per reports, Rs156.2 billion will be allocated to primary education, which is a stark increase from FY 2024-25’s outlay of Rs136.2 billion.