Khyber Pakhtunkhwa Chief Minister Suhail Afridi on Tuesday presented a Rs2.17 trillion budget for the fiscal year 2026-27, with a projected deficit of Rs48 billion.
The total size of the provincial budget stands at Rs2,170 billion, while revenue has been estimated at Rs2,122 billion.
Presenting the budget in the provincial assembly, Chief Minister Afridi said the province was presenting a deficit budget of Rs48 billion, but clarified that the shortfall would not be financed through borrowing and would instead be covered through the province’s own resources.
Development Programme
According to the budget document, Rs524 billion has been proposed for the Annual Development Programme, while Rs52.8 billion will be allocated to district governments.
Salaries, Pensions and Minimum Wage
The budget proposes a 7 per cent increase in salaries and pensions of government employees. The minimum monthly wage is proposed to be increased by Rs5,000 to Rs45,000.
Health, Education and Social Welfare
The budget document proposes an allocation of Rs334 billion for the health sector and Rs468 billion for education.
An amount of Rs15 billion has been earmarked for the Ehsaas Mustahiq Programme, while Rs50 billion has been proposed for the Sehat Card scheme.
The government has also proposed allocating Rs80 billion for MTI hospitals and Rs36 billion for the Peshawar Rehabilitation Programme.
Interest-Free Loans and Transport Schemes
For individuals seeking employment abroad, Rs2 billion has been allocated for interest-free loans.
The budget also proposes Rs2.5 billion for electric bikes and rickshaw schemes.
BRT, Khushhal Khyber and Other Allocations
According to the budget document, Rs7.5 billion has been allocated for the Bus Rapid Transit (BRT) system and Rs4 billion for the Khushhal Khyber Programme.
The Local Government Department is proposed to receive Rs90 billion, the Home Department Rs29 billion and the Transport Department Rs14 billion.
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The budget earmarks Rs29 billion for agriculture, Rs42 billion for energy and Rs28 billion for Zakat.
In addition, Rs29 billion has been proposed for the merged districts, while Rs52 billion has been allocated under the Accelerated Implementation Programme (AIP).
The budget document also proposes Rs150 billion under foreign assistance and loans.
An amount of Rs5.18 billion has been earmarked for the federal Public Sector Development Programme (PSDP), while Rs1,645 billion has been proposed for current expenditures.
According to the budget document, Rs191 billion has been proposed for maintaining law and order, while Rs200 million will be allocated for the Good Governance Roadmap.
