The Khyber Pakhtunkhwa government has decided to present a balanced budget instead of a surplus budget for the next fiscal year, according to the provincial Finance Department.
The total size of the KP budget is expected to reach Rs2.3 trillion, with development spending likely to increase.
According to the Finance Department, the provincial government has decided not to present a surplus budget for the upcoming fiscal year.
Officials said the decision was taken because the federal government has not yet finalized the new National Finance Commission award.
The Finance Department said the province cannot prepare a surplus budget due to the non-consolidation of the new NFC award by the federation.
Budget size expected at Rs2.3tr
The total volume of Khyber Pakhtunkhwa’s provincial budget for the next fiscal year is expected to be around Rs2.3 trillion. Officials said the federal government has not yet clarified the key features of the next fiscal year’s budget.
This uncertainty has affected provincial budget planning, especially because KP depends heavily on federal transfers.
According to the Finance Department, more than 90% of Khyber Pakhtunkhwa’s annual budget depends on federal distributable revenue.
Officials said this reliance on federal receipts is a key factor behind the decision to prepare a balanced budget rather than a surplus one. The province is waiting for clarity from the federal government on budgetary features and revenue distribution.
Development spending likely to rise
The Finance Department said the size of the Annual Development Programme is expected to increase in the next budget. The ADP volume is likely to rise from Rs547 billion to Rs590 billion.
This increase indicates that the provincial government plans to maintain focus on development projects despite fiscal constraints.
Departmental savings top priority
Officials said the highest priority in the next provincial budget will be given to savings by government departments. The Finance Department said departmental savings will play an important role in managing expenditure and maintaining budget balance.
The final budget shape will depend on federal clarity over revenue transfers and broader fiscal decisions for the next financial year.
