The Sindh government presented a tax-free budget of about Rs3.56 trillion for the fiscal year 2026-27, focusing on education, health, social welfare, public services and flood rehabilitation while proposing a seven percent increase in salaries for government employees.
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Chief Minister and Finance Minister Murad Ali Shah presented the budget in the Sindh Assembly, describing it as a people-friendly financial plan aimed at maintaining public services and supporting vulnerable segments of society amid economic challenges.
According to media reports, the total budget outlay stands at Rs3,562.058 billion, while total revenue is estimated at Rs3,525.122 billion, resulting in a fiscal deficit of Rs36.93 billion.
The provincial government plans to bridge the gap through borrowing and other financing measures.
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The government has allocated Rs620 billion for the education sector, making it one of the largest spending areas in the budget. Health received Rs393 billion, while local government services were allocated Rs155 billion.
Law and order spending has been set at Rs222 billion to strengthen policing, prison management and public safety initiatives across the province.
For agriculture, a key sector of Sindh’s economy, the government has earmarked Rs41 billion. Additional allocations have also been made for livestock and fisheries development.
The budget includes a development allocation of Rs720 billion. However, officials acknowledged that development spending has been reduced by around 29 percent compared to previous plans due to fiscal constraints and the need to prioritize ongoing projects.
Under the Annual Development Programme (ADP), the provincial allocation has been reduced from Rs520 billion to Rs385 billion.
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The government has decided not to introduce new development schemes during the next fiscal year and will instead focus on completing existing projects and flood recovery initiatives.
Several social welfare programmes have received funding in the new budget.
The Benazir Hari Card programme has been allocated billions of rupees to support farmers, while funds have also been set aside for kitchen gardening schemes, housing assistance, IT training programmes and support for small and medium-sized enterprises (SMEs).
The government also announced special measures for persons with disabilities, including the distribution of assistive devices and other support services. More than Rs1 billion has been allocated for these initiatives.
Public transport projects, including the electric bus programme, will continue in the coming fiscal year. The government has also maintained subsidies worth Rs60 billion to provide relief in key sectors.
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Sindh expects to receive more than Rs2.26 trillion from the federal government through revenue-sharing arrangements, direct transfers and grants. In addition, foreign-assisted projects and development funding are expected to contribute significantly to provincial revenues.
Sindh is Pakistan’s second-largest province by population and contributes significantly to the national economy through industries, agriculture, ports and services.
The provincial budget outlines spending priorities for the fiscal year and plays a key role in funding education, healthcare, infrastructure and social protection programmes.
This year’s budget comes as the province continues efforts to complete flood rehabilitation projects and manage fiscal pressures while maintaining public services.
