Sindh presents Rs 3.56 trillion budget, relief package for the people

The Sindh government has unveiled its fiscal roadmap for 2026-27, presenting a budget of Rs 3.56 trillion that includes development spending, public sector support and social welfare measures without introducing new taxes.

Chief Minister Syed Murad Ali Shah, who also holds the finance portfolio, described the budget as a strategy designed to maintain fiscal stability while continuing to invest in key sectors that directly affect citizens.

One of the most prominent features of the budget is a 7 percent increase in salaries and pensions of government employees. The government has also increased the provincial minimum wage from previous levels to Rs43,000 per month, a move expected to benefit thousands of workers across Sindh.

The budget places greater emphasis on development spending. Of the total expenditure, Rs720.39 billion has been allocated for development projects aimed at improving public infrastructure, service delivery and economic opportunities.

Health remains the largest sectoral allocation, receiving Rs402 billion. Officials say the funding will support hospitals, healthcare facilities, medical services and ongoing public health initiatives.

Another large amount has been allocated for local government services, receiving Rs347.6 billion. These funds are expected to support municipal services, sanitation programmes and urban development projects.

Rs185 billion has been allocated for the transport and communication sector, reflecting the government’s aim to improve connectivity and support economic activity across the province.

Agriculture and irrigation, both key sectors for Sindh’s economy, have been allocated more than Rs175 billion combined. These investments are expected to strengthen water management systems, agricultural production and rural development.

The budget also includes earmarked funding for social welfare programmes. The government has allocated Rs26.4 billion for social protection measures, while reserved funds have been earmarked for women, minorities and persons with disabilities.

On the revenue side, Sindh is expected to collect around Rs690 billion in tax collections. Additional revenues are estimated to come from non-tax sources, foreign project aid and federal development funding.

The government has also proposed targeted tax relief measures, including a reduction in sales tax on education-related services and a lower tax rate for insurance intermediaries.

Officials say the budget balances economic realities with public expectations. By maintaining development spending and avoiding new taxes, the Sindh government aims to support economic activity and social development simultaneously.

As lawmakers continue to debate the budget, analysts will closely monitor how effectively the proposed appropriations translate into measurable improvements in services and economic growth over the next fiscal year.