The Khyber Pakhtunkhwa government is set to present its budget for the fiscal year 2026-27 today, with a total outlay of around Rs2.28 trillion and a development programme exceeding Rs550 billion.
The budget is expected to focus on infrastructure, healthcare, education, youth empowerment, agriculture, and development initiatives in the merged tribal districts while maintaining a balanced fiscal framework.
Government moves to end budget uncertainty
The provincial government decided to present the budget on Friday to remove doubts and uncertainty surrounding the province’s financial plans for the upcoming fiscal year.
Officials in the Finance Department have completed preparations for the budget, which is expected to be one of the largest in the province’s history.
According to sources, the total budget volume has been estimated at Rs2.275 trillion, while total expenditures for the next fiscal year are projected at the same amount, making it a balanced budget with income and expenditure remaining equal.
Major revenue sources identified
The largest share of provincial revenue will come from the federal divisible pool.
Sources said Khyber Pakhtunkhwa is expected to receive Rs1.443 trillion from the federal government's distributable revenue.
In addition, the province is projected to receive Rs100 billion from the federation in the form of net hydel profit.
Foreign assistance is expected to contribute around Rs150 billion, while oil and gas royalty receipts are estimated at Rs27 billion.
The federal government is also expected to provide Rs95 billion for the non-development expenditures of the merged districts.
Meanwhile, the province’s own-source revenue is estimated at more than Rs150 billion.
Development budget exceeds Rs550 billion
A major highlight of the budget is the Annual Development Programme (ADP), which is expected to exceed Rs550 billion.
According to sources, the development programme includes approximately 2,500 projects across the province.
Eighty percent of the development allocation will be dedicated to ongoing projects to ensure their timely completion, while the remaining funds will be used for new initiatives.
Significant allocations for health sector
The provincial government plans to continue prioritizing healthcare services.
Sources said Rs50 billion has been allocated for the Health Card programme to support medical treatment for citizens.
An additional Rs15 billion is expected to be allocated for the provision of medicines in government hospitals across the province.
These allocations aim to strengthen healthcare services and improve access to treatment facilities.
Infrastructure projects receive major funding
The upcoming budget also includes significant investment in infrastructure development.
According to details, Rs56 billion will be spent on the construction and improvement of roads and bridges throughout Khyber Pakhtunkhwa.
The allocation is expected to improve connectivity, facilitate trade, and support economic activity in both urban and rural areas.
Focus on merged districts and education
The budget includes a major development initiative for the merged tribal districts.
Sources said the Rs1 trillion Roshan Pakistan project for the merged districts has been incorporated into the budget.
In the education sector, the government is launching 72 Chief Minister Model School projects with an estimated cost of Rs9.5 billion.
The initiative aims to improve educational infrastructure and expand access to quality learning opportunities.
Youth and agriculture support measures
The provincial government has also included several welfare and economic support programmes.
The budget contains plans to provide interest-free loans to unemployed youth and students enrolled in professional educational institutions.
Farmers are also expected to benefit through schemes aimed at providing agricultural machinery and other facilities to improve productivity and support the agricultural sector.
Budget approval schedule announced
According to official budget documents, the Khyber Pakhtunkhwa Assembly will begin debating the budget after its presentation today.
Four days have been allocated for discussion of the budget proposals.
The assembly is scheduled to debate the budget from June 22 to June 24 and again on June 27.
There will be a two-day break in accordance with assembly rules, while two additional days will coincide with Ashura holidays.
The provincial budget is expected to be approved on June 28, the fifth day of the legislative process.
Budget aims to balance development and fiscal stability
The Khyber Pakhtunkhwa government’s proposed budget seeks to balance fiscal discipline with development priorities.
With major allocations for healthcare, education, infrastructure, youth empowerment, agriculture, and the merged districts, the budget is expected to shape the province’s economic and social agenda for the coming fiscal year.
