Khyber Pakhtunkhwa government is expected to unveil a Rs2,070 billion budget for the fiscal year 2025–26, marking a significant increase of Rs416 billion compared to the outgoing year.
Rs1,352 billion will be allocated for current expenditures, including Rs680 billion for salaries and Rs200 billion for pensions.
The provincial government is also considering a salary increase of more than 10%, while pensions are expected to be raised by 7%.
Sources added that KP expects to receive Rs1,342 billion from the federal government under the National Finance Commission (NFC) award. Additionally, Rs108 billion are anticipated under net hydel profits, Rs55 billion from oil and gas royalties, and Rs138 billion under the war-on-terror compensation at the rate of 1%.
The outgoing fiscal year 2024–25 had a total budget of Rs1,654 billion. The upcoming budget, effective from July 1, reflects KP's growing fiscal requirements amid rising expenditures and development needs.
