Sindh province is facing a significant budget deficit for the upcoming fiscal year, attributed to reduced revenue transfers from the federal government. Chief Minister Murad Ali Shah presented a budget projecting a deficit of over Rs139 billion, citing a substantial shortfall in the province’s share of federal taxes. The budget prioritizes employee salaries and pensions, allocating a large portion of expenditure to these areas, alongside debt servicing. Development spending has been curtailed due to the financial constraints. The Sindh government anticipates receiving less revenue from the federal divisible pool than initially expected, impacting its ability to fund projects. Opposition parties have criticized the budget, labeling it as unrealistic and lacking in provisions for economic growth. The government maintains the budget is a necessary response to the prevailing economic challenges and federal revenue distribution.