KARACHI: The Sindh government is set to present its Budget 2026-27 today, with the provincial administration expected to announce relief measures for government employees while reducing development spending amid growing fiscal constraints.
Chief Minister Syed Murad Ali Shah, who also serves as the province’s finance minister, will present the budget in the Sindh Assembly after securing approval from the provincial cabinet during a meeting scheduled earlier in the day.
The upcoming budget will mark the 11th budget presentation by Murad Ali Shah, the highest number by any finance minister or chief minister in Sindh’s parliamentary history.
Salary and Pension Increases Under Consideration
According to officials, the Sindh government is considering several relief measures, including:
- A 20% increase in the minimum wage
- A 10% raise in salaries for government employees
- An 8% increase in pensions
However, these proposals are subject to final approval by the provincial cabinet before being formally announced.
Officials said a significant portion of provincial resources is expected to be allocated to recurring expenditures, including salaries, pensions, and other operational costs, leaving limited fiscal space for new development initiatives.
Development Budget Expected to Shrink
The Sindh Budget 2026-27 is expected to reflect a notable reduction in development spending.
Budget estimates suggest that non-development expenditures will reach approximately Rs. 2.56 trillion, while overall development spending is projected to decline from Rs. 1.018 trillion in the current fiscal year to around Rs. 720 billion.
Provincial development allocations are likely to fall from Rs. 520 billion to Rs. 385 billion, while district development funding may be reduced from Rs. 55 billion to Rs. 15 billion.
Rather than launching major new schemes, the government plans to continue work on 3,642 ongoing provincial and district-level development projects, with an allocation of around Rs. 400 billion proposed for their completion.
Water, Health, Education to Remain Priorities
Despite lower development spending, officials indicated that key sectors will continue to receive priority funding, including:
- Water resource management
- Climate resilience projects
- Public health services
- Education initiatives
The provincial government is also expecting approximately Rs. 64 billion in federal development grants and around Rs. 256 billion in external financing from international financial institutions to support development activities.
Cabinet to Review Budget Before Assembly Session
Before the budget is tabled in the assembly, the Sindh cabinet will review and approve the financial proposals, supplementary expenditures for FY2025-26, progress under the Annual Development Programme (ADP), and recommendations from various finance committees.
Following the budget presentation, Chief Minister Murad Ali Shah is expected to hold a post-budget press conference on June 18 to explain the key features of the fiscal plan and outline the government’s economic priorities.
The Sindh Assembly will then begin a five-day debate on the budget, with participation from both treasury and opposition members.
