KARACHI: Sindh`s budget for the next financial year is estimated to be around Rs870 billion, with a deficit of Rs12 to Rs15 billion, it emerged on Thursday.

However, the final approval of the budget estimates will be given by the cabinet that will meet before its presentation in the Sindh Assembly by Senior Minister for Finance, Planning, Development, Agriculture and Energy Syed Murad Ali Shah on Saturday.

In the cabinet meeting, the allocation of funds will be adjusted in the light of the suggestion by the party high command last week.

The estimated budget includes federal components in the form of grants, foreign loans, education support programme and state transfers including Rs547 billion fromfederal divisible pool and Rs165 billion from provincial duty receipts.

Sources close to the finance department said that in the new budget estimates, Rs236 billion was allocated for provincial development programme and Rs65 billion for the expenditures of local government institutions and Rs10 billion special package for Karachi and Rs6 billion allocation for K-IV water project from its share amount. Besides, over Rs12 billion was proposed in the budget for providing 40,000 jobs in different government departments including 20,000 jobs in police. Sindh Governor Dr Ishratul Ibad has summoned the budget session on Saturday at 11am on the new premises of the assembly building where Senior Minister Murad Ali Shah will present the budget.

According to the sources, Sindh is expected to receive Rs802 billion throughfe deral grants, loans, e ducation support f und and other federal transfers; Rs79 billion from provincial taxes, Rs64 billion from general sales tax, agri-income tax, property tax, stamp duty, infrastructure and from other duties and Rs22 billion from indirect taxes.

The sources said that as the FBR collection targets for the current financial year were expected to meet, the Sindh government was likely to receive Rs560 billion including Rs480 billion from divisible pool, revenue assignments; Rs68 billion from direct state transfers and Rs12 billion against octroi and district taxes. They said the province would get Rs52 billion from revenue and other taxes while Rs78 billion was expected from sales tax on services which was Rs17 billion more from this year`s target of Rs61 billion.

Likewise, additional income of Rs100 billion was expected from other sources.According to the sources, the cabinet in its last meeting has given approval of increasing rate of of taxation and duties on certain items and services including motor vehicle tax, infrastructure tax to meet the deficit.

In the coming financial year, the revenue expenditure is estimated to be around Rs560 billion which is Rs59 billion more than the current estimates of Rs501 billion.

The sources said that Rs164 billion -Rs13 billion for development and Rs151 billion non-development budgetwas proposed for the education sector.

They said for the health sector, Rs79 billion was proposed including Rs14 billion for development.

For law and order, they added, Rs80 billion was proposed which was more than 22 per cent from the current budget allocation.

According to the sources, Rs32 billion was proposed for the irrigation sector including Rs12.78 billion for development work. For the agriculture sector, Rs17.13 billion was proposed including Rs12.78 billion for development work.

For works and services department, Rs26.09 billion would be allocated including Rs11.50 billion for development work.

In the new budget revenue expenditure is estimated to be Rs560 billion which is Rs59 billion more than the revised estimates of the current year`s Rs501billion in which Rs125.5 billion was for ongoing development schemes while Rs31.5 billion for new development schemes, according to the sources.

In new budget, the total development outlay would be around Rs260 billion, which included Rs200 billion provincial annual development programme and Rs25 billion for the district ADP. The sources added that Rs 12 billion for foreignassisted projects and Rs20 billion for PSDP projects were expected from the federal government.