Sindh sees healthy growth in revenues due to fiscal reforms

Karachi  -   Sindh has recorded growth in its tax col­lections thanks to the government’s fiscal reforms over the last five years to mobil­ise revenues. “The reforms in the fiscal side of the province were introduced and implemented to curtail the budget deficit and arrange more funds for the develop­ment projects,” said Nadir Jatoi, Director of the Finance Management Wing.

He said that because of these reforms, the provincial tax collection surpassed its target for the financial year 2022-23 with an “unprecedented” monthly rev­enue collection of Rs24 billion in June 2023. “Total collection for the year was Rs185.3 billion, crossing the assigned revenue target of Rs180 billion.”

He noted that the province also had record tax collection of Rs21.3 billion for December 2023, registering a 22% growth compared to Rs17.5 billion collected in December 2022, whereas the total tax collection in the first six months (July-December) of the current financial year 2023-24 reached Rs108.6 billion, up by 35% from Rs80.2 billion in the same period last year.

He attributed the “phenomenal rev­enue growth” to the continued coop­eration of taxpayers, reforms in the tax collection machinery, and tireless efforts of the provincial tax collection board. Jatoi hoped that the province would achieve the revenue target of Rs235 billion for the ongoing finan­cial year, despite facing challenges like economic slowdown and a stagnant tax base. Bashir Soomro, Director of the Policy Wing Finance Department, Sindh, said the fiscal reforms were needed to be implemented as the prov­ince had been spending huge sums of money on development projects.

Soomro said despite being entangled by multiple crises, the Sindh govern­ment proved to be a responsible fed­erating unit and consented to fiscal management to maintain a cash sur­plus of Rs184.125 billion for the FY23, according to the federal government’s commitments with IMF to secure re­quired bailout package. “We have re­vised the development portfolio and set priorities aligned with the emerg­ing post-flood demands. We recognised the need for adaptability and strategic decision-making. We carefully evalu­ated our priorities, ensuring that every rupee invested delivered maximum value,” he said. Soomro said that the people of Sindh were the main focus of the provincial government to uplift them socially and economically.

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