Khyber Pakhtunkhwa Announces Rs. 2.17 Trillion Budget

The Khyber Pakhtunkhwa government on Friday unveiled a Rs 2.17 trillion budget for the 2026-27 fiscal year, proposing higher spending on development, healthcare, education, and public welfare while projecting a budget deficit of Rs. 48 billion.

Chief Minister Sohail Afridi presented the budget in the KP Assembly, allocating Rs. 524 billion for the Annual Development Program (ADP) and Rs. 1.645 trillion for current expenditures.

The budget also earmarks Rs. 35 billion for the merged tribal districts.

Among the key relief measures, the provincial government has proposed a 7 percent increase in salaries and pensions for government employees. It has also recommended increasing the minimum monthly wage from Rs. 40,000 to Rs. 45,000.

The law and order sector has been allocated Rs. 191 billion, while Rs. 200 million has been set aside for the Good Governance Roadmap.

In the social sector, the government has proposed Rs 50 billion for the Health Card Program, Rs. 15 billion for the Ehsaas Mustahiq Program, and Rs. 80 billion for Medical Teaching Institutions (MTI) hospitals.

The budget also includes Rs. 36 billion for the Peshawar Rehabilitation Program, Rs. 7.5 billion for the Peshawar BRT project, and Rs. 4 billion for the Khushhal Hazara Program.

To support economic development, the government has allocated Rs. 2 billion for the Ehsaas Kisan Program and another Rs. 2 billion for interest-free loans to people seeking employment opportunities abroad. An additional Rs. 2.5 billion has been proposed for an electric bikes and rickshaws scheme.

Sector-wise, the budget sets aside Rs. 468 billion for education, Rs 334 billion for health, Rs. 90 billion for local government, Rs. 42 billion for energy, Rs. 29 billion each for the home and agriculture departments, Rs. 28 billion for the Zakat Fund, and Rs. 14 billion for transport.

The budget proposals will now be debated in the KP Assembly before they are put to a vote for approval.