Article Written by Muhammad Naeem Barrech
Balochistan’s Government has unveiled a provincial budget of Rs 750 billion for the 2023-24 financial year, marking a critical juncture for the province in tackling fiscal constraints and socio-economic challenges. This move is pivotal in addressing the province’s immediate needs and fostering development. Amidst these financial constraints, the spotlight is on the indispensable role of the federal government in Balochistan’s budgetary allocation, contextualized within Pakistan’s economic landscape. The Federation holds a vital position, integral to the province’s financial stability and growth.
The budget, presented in June 2023, encompasses various initiatives aimed at augmenting different sectors. Notably, it proposes a 35% pay raise for government employees within BPS-1 to BPS-16 and a 30% increase for BPS-17 to BPS-22, alongside a 17.5% rise in pensions in alignment with federal decisions. Allocation specifics include Rs 437 billion for non-development expenditure, Rs 65 billion for healthcare, Rs 5.5 billion for health cards, and Rs 53 billion for peace and security. Furthermore, plans for the establishment of 100 new primary schools, upgrades for 50 existing schools, and the creation of 863 positions in the education sector have been outlined.
In additional, measures encompass laptop and scholarship schemes for students, the introduction of 5,068 new infrastructure development projects and the generation of 4,389 government jobs. These endeavors underscore the commitment of the Balochistan government to drive development amidst adversities.
The federal government’s decision to allocate 464.7 billion to overcome Balochistan’s deficit is instrumental. This infusion of funds aims to bolster education, healthcare and law enforcement in the province, catalyzing its path towards progress and prosperity. The significance of federal support cannot be overstated without it, accomplishing these projects within the budget’s which is only constraints would be an arduous task for Balochistan.
The revenue generated by Balochistan’s mineral sector, amounting to Rs 7.2 billion in the previous fiscal year. Resources like coal, gas, chromite, sulfur, iron ore, marble, and substantial oil reserves play a pivotal role in revenue generation. Sui natural gas accounts for 26% of Pakistan’s gas production. Sui southern gas provides gas to 160 cities and towns and 38,00 villages in Balochistan and Sindh. However, challenges arise from an ineffective taxation system. Influential individuals exploit these resources without contributing to the provincial treasury, resulting in a significant loss of potential revenue. Rectifying this through taxation can substantially accelerate Balochistan’s development and stability.
In essence, the unveiling of the Rs 750 billion budget for 2023-24 signifies Balochistan’s resolute stance in addressing fiscal constraints and socio-economic hurdles. Yet, the efficacy of this budget relies significantly on federal support, exemplified by the substantial allocation aimed at mitigating deficits and fostering holistic development.
