Ahmed Khan Malik

The Sindh government has asked all provincial departments, autonomous bodies and attached institutions to submit revised estimates for FY26 as part of preparations for the upcoming provincial budget.

The directive marks the formal start of the budget-making process for the next financial year, with the Finance Department seeking updated data on expenditures, savings and re-appropriations to ensure realistic projections and improved fiscal planning. Departments have been instructed to submit revised figures within a stipulated timeframe so the finance team can consolidate the information ahead of pre-budget consultations.

The revised estimates will enable the government to assess the province’s actual financial position during the current fiscal year by comparing budgeted allocations with real spending trends. This exercise is particularly important amid rising inflation, growing development needs and fiscal constraints faced by the province, said Naveed Ahmed, Director, Finance Department Sindh.

“The purpose of revised estimates is to capture ground realities. Initial budget estimates are prepared months in advance, but economic conditions, revenue inflows and expenditure requirements often change during the year. Revised estimates allow the government to adjust its priorities accordingly,” he told Wealth Pakistan.

He said departments have been asked to provide details of funds already spent, committed expenditures for the remaining months of the current fiscal year and any expected savings under various heads. They have also been instructed to justify demands for additional funds where expenditures are likely to exceed original allocations.

Special attention is paid to development schemes under the Annual Development Programme (ADP), he said. Departments implementing development projects have been directed to report on progress, utilisation of allocated funds and reasons for delays, if any. Projects showing slow progress may face reduced allocations in the next budget, while those nearing completion could be prioritised.

The Finance Department is also seeking updated estimates of salary and pension expenditures, which account for a significant share of the provincial budget. With rising living costs and periodic revisions in pay scales, these expenditures often exceed initial projections, adding pressure on the provincial exchequer.

In addition to expenditure estimates, the provincial government is reviewing revenue performance for the current fiscal year. Provincial tax and non-tax revenue collecting agencies have been asked to share revised targets based on actual collections and expected inflows by year-end, he said, adding that this assessment will play a key role in determining the size and structure of the next budget.

Naveed said the revised estimates will form the basis for framing budget estimates for the next financial year. Once compiled, the Finance Department is expected to hold internal meetings with key departments to finalise proposed allocations, with discussions likely to focus on balancing development spending with social sector priorities such as health, education and social protection.

Credit: INP-WealthPk