SINDH BUDGET 2026-27: Sindh unveils Rs3.56tr budget with Rs36.9bn deficit

Presenting the budget in the Sindh Assembly, Chief Minister Murad Ali Shah, who also holds the finance portfolio, described it as a budget of hope, development and public trust and said the provincial government had tried to balance fiscal restraint with public welfare amid inflation, fuel-price pressures, global uncertainty and post-flood reconstruction needs. The chief minister said the provincial government had been compelled to slash its development portfolio from a projected Rs575bn to Rs400bn after contributing towards national strategic requirements under a negotiated arrangement with the federal government. “Even in a difficult fiscal environment, we have protected priority development projects and essential public services that directly affect the lives of our people,” he said. CM Murad said the arrangement with the Centre was backed by a memorandum of understanding that fully protected Sindh’s constitutional entitlement under the 7th NFC Award through a guaranteed federal revenue assignment base of Rs13.350tr. He added that any national requirements beyond the agreed Rs260bn would be met by the federal government from its own resources. “Our approach was guided by a simple principle: fiscal prudence must enable development, not constrain it,” he said. Major ADP allocations include Rs121.66bn for local government, mega, water and sanitation and roads-related schemes; Rs40.86bn for public health engineering a