The PPP-led coalition government in Balochistan unveiled an ambitious Rs955.6 billion budget for the fiscal year 2024-25, marking a significant increase of over 36% from the previous year’s estimate. This budget, presented by Finance Minister Mir Shoaib Ahmed Nosherwani, aims to stimulate economic growth and development across the province while maintaining fiscal responsibility.
The budget projects development expenditures of Rs321.2 billion and anticipates a cash surplus of Rs25.4 billion. A substantial portion of the increased budget can be attributed to an expected 39% rise in the province’s receipts from the federal tax divisible pool, which are forecasted to grow from Rs464.7 billion to Rs647 billion under the current National Finance Commission (NFC) arrangement. Additionally, the budget includes Rs20.6 billion in straight transfers, Rs20 million in non-development grants, and Rs59.1 billion in development grants from the federal government. Provincial revenues are expected to contribute Rs47.7 billion from taxes and Rs76.8 billion from non-tax receipts.
Despite the substantial increase in revenue, the province faces a more than 41% increase in current revenue expenditures, surging to Rs564.9 billion. This rise is primarily due to higher pay and pension bills and increased spending on security. Development expenditures will see a modest increase to Rs321.2 billion from Rs313.3 billion in the current year.
In the education sector, the provincial government is committed to fulfilling its responsibilities under Article 25-A of the Constitution, aiming to enroll children aged five to 16 who are currently out of school. To address the shortage of teachers and make non-functional schools operational, 535 new posts will be created, and 9,394 existing vacant posts from Grades 9 to 15 will be filled on merit. The government plans to allocate Rs3.5 billion from federal grants to improve education in 22 underdeveloped districts and Rs5 billion to support financially struggling public universities. Additionally, Rs32 billion will be set aside for development spending on higher education, and Rs114.8 billion for non-development spending.
Health spending is also a priority, with Rs67.3 billion allocated for non-development expenditures, a 30% increase from the current year. Another Rs20 billion is budgeted for development spending. The budget includes the creation of 242 new posts in the health sector and significant allocations for specialized healthcare services, such as Rs1.3 billion for the Gwadar Pak-China Friendship Hospital and Rs1.3 billion for paediatric oncology services. Plans are also in place to make three main hospitals autonomous and to establish a liver transplant hospital in Nasirabad.
Addressing climate change, the government has allocated Rs10 billion under the Green Balochistan Initiative to mitigate its impact and improve flood protection infrastructure. The Disaster Management Authority’s grant has been increased to Rs7.9 billion. Additionally, Rs93.1 billion has been earmarked for law and order, with substantial allocations for the police, Levies Force, and the Balochistan Constabulary, and Rs1 billion for the Gwadar Safe City project.
The budget also reflects a strong commitment to governance, with a 108% increase in funds for local governments, bringing their total budget to Rs35 billion for fiscal year 2024-25. Salaries of provincial employees will be increased by 25% for those in Grades 1 to 16, and by 22% for those in Grades 17 to 22. Moreover, the provincial government plans to invest an additional Rs2 billion in Balochistan’s pension fund and introduce a contributory pension scheme for new employees starting July 1.
