Published June 19, 2026 Updated about an hour ago EDITORIAL: Sindh presented a 3,525 billion-rupee budget with the major reliance for revenue remaining on federal transfers (nearly 64 percent), but own-receipts are projected to account for 22 percent as a percentage of total revenue collected: 456 billion rupees as sales tax on services and agriculture income tax against 362 billion rupees collected in the outgoing year (26 percent rise), tax receipts other than sales tax and agricultural income tax budgeted to generate 234 billion rupees, a decline from the 261.729 billion rupees collected last year, and non-tax receipts at 85 billion rupees, a small decline from the 86.5 billion rupees collected in 2025-26. However, a closer look at this data reveals three disturbing features of the budgeted own-revenue that are common with the Punjab budget: (i) agricultural income tax is projected to generate only 6 billion rupees next fiscal year which, without doubt, is violative of the International Monetary Fund’s insistence that this sector does not pay taxes commensurate to its contribution to the Gross Domestic Product (GDP); the Punjab government has earmarked a mere 10.5 billion rupees under this head next fiscal year; (ii) it is difficult to support any reduction in collections, excluding GST and farm tax; especially, if the GDP growth rate is projected at 4 percent. Punjab has projected the same revenue as in the outgoing year under stamp duties and a reduction of 500,000 rupees in terms of fees and penalties, though the budget documents mention higher police earnings from fines and penalties; and (iii) the same questions arise with respect to the decline in the non-tax receipts. Punjab too showed a decline under this head though it was much larger than budgeted by Sindh notably nearly 29 billion rupees. The Sindh government’s Budget Strategy Paper 2026-27 to 2028-29 notes some major risks with a potential for major conflict with the Centre as follows: “Under the MTFF of term 2026-29, the Government is expected to face an operating budget deficit, with total revenues falling short of projected expenditures due to a widening gap between revenue growth and…