PESHAWAR: The Khyber Pakhtunkhwa (KP) government has presented a Rs48 billion deficit budget for the fiscal year 2026-27, while announcing increases in salaries, pensions, and the minimum wage for government employees and workers.
Chief Minister Sohail Afridi presented the provincial budget, stating that the shortfall would be managed through internal resources rather than additional borrowing.
According to the details of the budget, the total amount of the provincial budget is Rs2,170 billion and Rs2,122 billion have been calculated as revenues in the budget which has led to a gap of Rs48 billion.
Annual Development Programme (ADP) has been assigned Rs524 billion in the budget, whereas Rs52.8 billion have been assigned to district governments to facilitate their developmental programs.
Salary and Wage Increase
A hike of 7 percent has been proposed in the salaries and pensions of the government officials while the minimum monthly wage has also been increased to Rs45,000.
Social Protection and Key Sector Allocations
There have been substantial allocations for social and developmental sectors in the budget. The budget allocates Rs334 billion to the health sector whereas the education sector has been allocated Rs468 billion, which makes it one of the highest-spending sectors.
Rs15 billion have been allocated for the Ehsaas Mustahiq Programme whereas Rs50 billion have been allocated for Sehat Card for providing healthcare services to the deserving citizens.
Medical Teaching Institutions (MTIs) reform initiatives have been allocated Rs80 billion, whereas Peshawar Rehabilitation Programme has been allocated Rs36 billion.
Employment and Development Initiatives
Moreover, the budget has included Rs2 billion for providing interest-free loans to people who are interested in working abroad. Also, Rs2.5 billion have been allocated for promoting electric bikes and rickshaw schemes to provide cheap means of transportation as well as employment opportunities.
Bus Rapid Transport (BRT) scheme has been allocated Rs7.5 billion whereas Khushal Khyber Programme will be getting Rs4 billion.
Other allocations include Rs90 billion for local government, Rs29 billion for interior department and Rs14 billion for transport.
Agriculture, Energy and Social Welfare
A total of Rs29 billion has been reserved for agriculture, Rs42 billion for energy and Rs28 billion for Zakat.
Under the AIP, a total of Rs29 billion is reserved for merged districts whereas Rs52 billion is reserved for the Accelerated Implementation Programme.
A sum of Rs150 billion is allocated for foreign assistance and loans.
Governance and Security
A total of Rs191 billion is reserved for law and order to ensure security in the province whereas Rs200 million has been reserved for the good governance roadmap.
The officials explained that the budget is an attempt to strike a balance between economic realities, social obligations and developmental aspirations of the province.
