In a first, cut motion moved by treasury member questioning hike in judicial staff鈥檚 salaries
鈥 Murad says the provincial fiscal plan will promote growth, equity and efficiency
KARACHI: The Sindh Assembly on Wednesday passed the province鈥檚 Rs3,450 billion budget for the financial year 2025-26 amid notable harmony between the two sides of the aisle.
The budget marked a 12.9 per cent hike in expenditure from the previous year.
Besides the approval of the provincial budget, the house also passed the Sindh Finance Bill envisaging an ambitious set of relief measures as part of the budget estimates for the upcoming fiscal year.
Earlier, during the presentation of cut motions on the provincial government鈥檚 financial plan, the house witnessed a historic moment when the treasury members sought Rs8 billion reduction, earmarked for hikes in the salaries of judicial staff.
Traditionally, cut motions are tabled by opposition members seeking reduction in budgets of different departments if they deemed the same an unnecessary burden on the provincial exchequer.
Addressing the house, Chief Minister Syed Murad Ali Shah, who presented the budget and the Finance Bill, called the budget a 鈥渞esponsible, comprehensive and forward-looking fiscal plan that promotes inclusive growth, equity and efficiency鈥.
Opposition Leader Ali Khurshidi expressed the hope that the provincial government would try to address its shortcomings in the future.
Jamaat-i-Islami鈥檚 Parliamentary Leader Muhammad Farooq paid tribute to all members on the approval of the budget, and said that when things were done in a democratic manner, the members gained confidence.
He appreciated the chief minister for giving a patient hearing to opposition members鈥 criticism.
Parliamentary Leader of the Pakistan Tehreek-i-Insaf-backed Sunni Ittehad Council Shabbir Qureshi said that the opposition and treasury members represented their respective areas in budget speeches.
He praised the chief minister for delivering a good speech on the approval of the budget. 鈥淚 hope that now a new era of development will begin in Sindh,鈥 he said.
The assembly members discussed expenditures charged to the provincial consolidation fund and reviewed and voted on demands for grants on supplementary statements for the year 2024-25.
There were a total of 188 demands, against which the opposition moved 2002 cut motions, which were rejected by a majority vote.
Speaker Syed Awais Shah clubbed together most of the cut motions as they were identical.
The assembly passed demands for grants for the year 2025-26 after discussion and voting.
Finance Bill
The chief minister announced an ambitious set of relief measures as part of budget estimates for the fiscal year 2025-26, aimed at boosting economic activity, supporting struggling sectors and easing the burden on the general public.
He informed the house that in addition to relief proposed under the Finance Bill, several key concessions had already been finalised via notifications and amendments to the existing rules and laws.
The measures span tax and non-tax areas, targeting sectors including agriculture, transport, health, education and small businesses.
Relief measures for farmers
Announcing relief measures through Finance Bill, he said that cotton fee had been abolished to support farmers following a sharp 30.7pc decline in cotton production. He said that drainage cess had been abolished to mitigate the impact of adverse weather and reduced cultivation as major crop yields such as wheat, sugarcane, maize and rice had seen significant decline this year.
The CM said that various revenue charges, such as mutation fee, certified copies, sales certificate, solvency certificate, heirship certificate and flat annual tax for commercial vehicles had been decreased by 50pc.
The yearly tax for commercial vehicles has been slashed to just Rs1,000, providing major relief to transporters and logistics operators.
Public benefit
The CM said that the stamp duty on third-party motor insurance was now just Rs50, while two-wheeler vehicles were exempted from the mandatory insurance requirement from FY 2025-26.
Entertainment duty as per the Sindh Finance Bill on the entire sector, including cinemas, drama theatres, art councils, water parks and cultural events was abolished.
Chief Minister Murad Ali Shah said that these sweeping relief measures by the provincial government signalled a pro-growth, pro-people fiscal policy, prioritising economic stimulation, reduction of regressive taxes and empowerment of key sectors such as agriculture, transport and small enterprises.
鈥淭he 2025-26 budget is a crucial step toward resilience, equity and sustainable development in the province,鈥 he concluded.
Published in Dawn, June 26th, 2025