The government of Khyber Pakhtunkhwa on Friday presented a Rs2.17 trillion budget for the fiscal year 2026-27, focusing on development spending, healthcare, education, social welfare, and economic growth while projecting a budget deficit of Rs48 billion.
Presenting the budget in the KP Assembly, Chief Minister Sohail Afridi announced an allocation of Rs524 billion for the Annual Development Program (ADP), while Rs1.645 trillion has been earmarked for current expenditures.
The provincial government has also allocated Rs35 billion for the merged tribal districts to support development and public service delivery in the region.
Relief Measures for Employees and Workers
Among the key relief initiatives, the government has proposed:
- A 7 percent increase in salaries for government employees.
- A 7 percent increase in pensions.
- Raising the minimum monthly wage from Rs40,000 to Rs45,000.
Major Allocations
The budget includes significant funding for social welfare and public services:
| Sector/Program | Allocation |
|---|---|
| Health Card Program | Rs50 billion |
| Ehsaas Mustahiq Program | Rs15 billion |
| Medical Teaching Institutions (MTI) Hospitals | Rs80 billion |
| Law and Order | Rs191 billion |
| Good Governance Roadmap | Rs200 million |
| Peshawar Rehabilitation Program | Rs36 billion |
| Peshawar BRT Project | Rs7.5 billion |
| Khushhal Hazara Program | Rs4 billion |
Economic Development Initiatives
To support agriculture, employment, and sustainable transport, the government has proposed:
- Rs2 billion for the Ehsaas Kisan Program.
- Rs2 billion for interest-free loans for individuals seeking overseas employment opportunities.
- Rs2.5 billion for an electric bikes and rickshaws scheme.
Sector-Wise Budget Allocations
The budget allocates substantial resources to key sectors:
- Education: Rs468 billion
- Health: Rs334 billion
- Local Government: Rs90 billion
- Energy: Rs42 billion
- Home Department: Rs29 billion
- Agriculture: Rs29 billion
- Zakat Fund: Rs28 billion
- Transport: Rs14 billion
Officials said the budget aims to strengthen public services, improve healthcare and education infrastructure, enhance social protection programs, and stimulate economic activity across the province.
The budget proposals will now be debated in the KP Assembly before being put to a vote for final approval.
