The Khyber Pakhtunkhwa government has presented a budget of Rs 2,170 billion for the financial year 2026-27, in which it has been proposed to allocate huge amounts for development projects, social welfare, health, and education, while a seven percent increase has been announced in the salaries of government employees and pensioners.
According to the budget documents, Rs 524 billion has been proposed for the annual development program, while Rs 1,645 billion has been proposed for ongoing expenses. Rs 35 billion has been allocated for the merged tribal districts in the budget, while the overall budget deficit is estimated to be Rs 48 billion.
The provincial government has also proposed a 7 percent increase in the salaries and pensions of government employees, and it has also proposed to increase the minimum monthly wage by Rs 5,000 to Rs 45,000.
The budget has recommended an allocation of Rs 191 billion for the law and order sector, while Rs 200 million has been proposed for the good governance roadmap. In the social welfare sector, Rs 15 billion has been proposed for the Ehsaas Deserving Program and Rs 50 billion for the Sehat Card Program. In addition to this, Rs 80 billion has been allocated for MTIs and hospitals.
The budget has proposed an allocation of Rs 36 billion for the Peshawar Rehabilitation Program, Rs 7.5 billion for the Peshawar BRT, and Rs 4 billion for the Khushal Hazara Program. It has been recommended to allocate Rs 51 million for the self-sufficiency of the minority community, while Rs 2 billion has been recommended for the Ehsaas Kisan Program. It has also been proposed to keep Rs 2 billion for providing interest-free loans to those seeking employment abroad.
The provincial government has also proposed to allocate Rs 2.5 billion for the electric bikes and rickshaw project. According to the budget documents, a total of Rs 334 billion has been allocated for the health sector, while Rs 468 billion has been allocated for education. It has been proposed to keep Rs 90 billion for the local government department, Rs 29 billion for the home department, and Rs 14 billion for the transport sector.
Similarly, it is proposed to allocate Rs 29 billion for agriculture, Rs 42 billion for the energy sector, and Rs 28 billion for the Zakat Fund.
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