KP unveils Rs2.17 trillion budget for FY2026-27 with 7pc salary, pension raise

Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Friday presented a Rs2.17 trillion provincial budget for the fiscal year 2026-27, projecting a deficit of Rs48 billion and proposing a 7 per cent increase in salaries and pensions of government employees.

Presenting the budget in the provincial assembly, the chief minister said that the total expenditure has been estimated at Rs2.17 trillion against projected revenues of Rs2.122 trillion.

He said Rs524 billion has been allocated for the Annual Development Programme (ADP), while 7,952 new jobs were created during the outgoing fiscal year. Highlighting achievements, the chief minister said 1,100 schools had been shifted to solar energy and financial assistance was provided to 10,000 students in merged districts, with Rs9,000 distributed per student.

For the upcoming fiscal year, the government has earmarked Rs52.8 billion for local governments and Rs29 billion for merged tribal districts. An additional Rs52 billion has been proposed under the Accelerated Implementation Programme (AIP) for the merged areas.

The chief minister said Rs150 billion has been allocated under foreign aid and loans, while Rs5.18 billion is proposed under the federal Public Sector Development Programme (PSDP). Current expenditures have been estimated at Rs1.645 trillion.

The budget also includes a proposal to increase the minimum monthly wage by Rs5,000, raising it to Rs45,000.

Key sectoral allocations

Rs191 billion for law and order
Rs15 billion for the Ehsaas programme
Rs50 billion for the Sehat Card scheme
Rs80 billion for MTI hospitals
Rs36 billion for rehabilitation programmes
Rs7.5 billion for the Bus Rapid Transit system
Rs4 billion for the Khushhal Hazara programme
Rs2 billion for the Ehsaas Kisan programme
Rs2 billion in interest-free loans for overseas job seekers
Rs2.5 billion for electric bikes and rickshaws
Rs334 billion for health
Rs468 billion for education
Rs90 billion for local government
Rs29 billion for home department
Rs14 billion for transport
Rs29 billion for agriculture
Rs42 billion for energy
Rs28 billion for Zakat