The Khyber Pakhtunkhwa government has prepared two separate budgets for the fiscal year 2026-27, including an emergency three-month budget and a full-year provincial budget, according to government sources.
The move comes as the provincial administration weighs constitutional and parliamentary options for managing expenditures during the upcoming fiscal year.
According to sources, the first budget has been prepared on an emergency basis and is valued at more than Rs385 billion. The second budget, which covers the entire fiscal year 2026-27, has a total proposed outlay of Rs2.275 trillion.
Both budget proposals are currently under consideration as the provincial government finalizes its fiscal strategy.
Three-month budget under Article 125
Sources said the Khyber Pakhtunkhwa government has formed legal and parliamentary committees to examine and facilitate the implementation of a quarterly budget under Article 125 of the Constitution.
The committees have been tasked with reviewing legal and procedural requirements related to the proposed three-month financial plan.
The emergency budget is being considered as a temporary arrangement to ensure the continuation of government operations during the initial months of the new fiscal year.
CM backs quarterly budget
According to sources, the Khyber Pakhtunkhwa chief minister is recommending the approval of a three-month budget, while members of the provincial assembly are advocating for the passage of a budget covering the entire fiscal year.
The differing approaches are being discussed within government and party circles before a final decision is made.
Sources said that under the proposed three-month budget, only current and non-development expenditures would be approved. This would allow the provincial government to continue routine administrative operations, salaries, pensions and other essential expenditures without interruption.
However, the temporary budget would not include funding for new development initiatives.
No development funds in quarterly plan
According to sources, no funds for development projects would be approved under the emergency quarterly budget.
As a result, development schemes and infrastructure projects across the province would remain outside the scope of the interim spending plan until a full-year budget is finalized and approved.
The arrangement is intended to focus solely on maintaining essential government functions during the three-month period.
Sources said all recommendations prepared by the parliamentary and legal committees will once again be reviewed by the party’s political leadership. Final approval for the proposals will be sought from the party’s political committee before any budget plan is formally presented or implemented.
The review process is expected to determine whether the province proceeds with the quarterly budget, the full-year budget, or another fiscal arrangement for FY2026-27.
Uncertainty over final budget strategy
While the government has completed work on both budget options, sources indicate that consultations are still ongoing regarding the most suitable course of action.
The outcome of these discussions will shape how Khyber Pakhtunkhwa manages its finances, development spending and administrative expenditures during the upcoming fiscal year.
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