The Khyber Pakhtunkhwa government’s budget for the next fiscal year is expected to have a total volume of up to Rs2,300 billion, according to the provincial Finance Department.
The budget for FY2026-27 is likely to be balanced instead of surplus, while the province is expected to maintain savings despite fiscal pressures.
According to the Finance Department, the total volume of the Khyber Pakhtunkhwa budget for the next fiscal year may reach Rs2,300 billion. The province is expected to receive Rs1,965 billion in distributable revenue from the federal government.
Officials said the budget would be balanced, rather than surplus, but the provincial government still plans to keep savings in the next fiscal year.
Development budget set above Rs560bn
The development budget for FY2026-27 is expected to be more than Rs560 billion. The Finance Department has proposed the highest allocation of Rs60 billion for the roads sector under the development programme.
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A proposal of Rs15 billion has also been made for primary and secondary education.
The Finance Department has proposed Rs40 billion as the initial development budget for tehsil and district governments. The proposed allocation is aimed at supporting development activities at the local level across the province.
Salary increase expected
A 5% to 10% increase in the budget for government employees is expected on the federal model. The final decision on employee-related allocations will be reflected in the provincial budget documents.
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