CM defends budget as 'responsible' amid fiscal strain

KARACHI: Sindh Chief Minister Murad Ali Shah has described the province’s Rs3.652 trillion budget for FY2026-27 as a responsible financial plan crafted amid declining federal transfers, rising expenditures and economic uncertainty.

Speaking at a post-budget press conference, Shah said Sindh is expected to face a fiscal deficit of around Rs300 billion due to lower-than-anticipated federal transfers and a shortfall in provincial tax revenues. He noted that despite these challenges, the government maintained development spending and released Rs930 billion under the previous year's development programme.

For FY27, Sindh has projected total receipts of Rs3.525 trillion and allocated Rs2.560 trillion for current expenditures. The budget includes Rs1.264 trillion for salaries and related expenses, raises the minimum monthly wage to Rs43,000, and allocates funds for local governments, public universities, hospitals and debt servicing.

To manage financial pressures, the government has reduced non-development spending and cut the Annual Development Programme from Rs1.018 trillion to Rs720 billion. Instead of launching new projects, it will focus on completing more than 2,000 ongoing schemes.

The chief minister also announced major infrastructure initiatives through public-private partnerships, including a proposed deep-sea port at Keti Bandar and the establishment of the Sindh International Financial Centre in Karachi. He further revealed plans for a green energy-powered data centre aimed at attracting international technology firms and utilising the province’s renewable energy resources.