By Our Correspondent
PESHAWAR: Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi on Friday unveiled a Rs2.122 trillion provincial budget for the fiscal year 2026-27, proposing a development-focused financial plan that includes a 7 per cent increase in salaries and pensions, enhanced social welfare spending, and major investments in education, health and infrastructure.
Presenting the budget in the provincial assembly, the chief minister said total revenue is projected at Rs2.122 trillion against estimated expenditures of Rs2.17 trillion, resulting in a budget deficit of Rs48 billion. The government has allocated Rs524 billion for the Annual Development Programme (ADP), reflecting its commitment to economic growth and public service delivery.
Afridi stated that Rs1.645 trillion has been earmarked for current expenditures, while external assistance and loans are expected to contribute Rs150 billion. The province’s share from federal receipts is projected at Rs1.59 trillion, while provincial revenues are estimated at Rs182.4 billion.
To provide relief amid rising living costs, the budget proposes a 7 per cent increase in salaries and pensions for government employees and raises the minimum monthly wage from Rs40,000 to Rs45,000.
The government has also prioritised social protection programmes, allocating Rs15 billion for the Ehsaas Mustahiq Programme, Rs50 billion for the Health Card initiative, and Rs28 billion for the Zakat programme. Additionally, Rs2.5 billion has been set aside for the Electric Bikes and Rickshaw Scheme to support affordable transportation and employment opportunities for youth.
Education and health remain key priorities in the budget, receiving allocations of Rs468 billion and Rs334 billion respectively. District governments have been allocated Rs52.8 billion, while merged tribal districts will receive Rs29 billion. A further Rs52 billion has been earmarked under the Accelerated Implementation Programme (AIP) to expedite development projects in sensitive and underserved areas.
The chief minister highlighted achievements during the outgoing fiscal year, including the creation of 7,952 new jobs and the solarisation of 1,100 public schools to improve energy efficiency and reduce operational costs. The government also distributed Rs4.29 billion in relief assistance to flood-affected communities.
Among sectoral allocations, Rs191 billion has been dedicated to security and law enforcement, while the Medical Teaching Institutions (MTI) hospital system will receive Rs80 billion. Rehabilitation programmes have been allocated Rs36 billion.
The transport sector has been allotted significant funding, including Rs7.5 billion for the Peshawar Bus Rapid Transit (BRT) system and Rs14 billion for broader transport initiatives. The Khushal Hazara Programme will receive Rs4 billion to support regional development.
Agriculture and energy sectors have been allocated Rs29 billion and Rs42 billion respectively, while local government institutions will receive Rs90 billion. The Home Department has been allocated Rs29 billion to strengthen governance and public safety.
Additional welfare measures include Rs2 billion for the Ehsaas Kisan Programme, Rs2 billion for interest-free loans aimed at overseas employment seekers, and Rs51 million for initiatives promoting the socio-economic empowerment of minority communities.
Concluding his budget speech, Chief Minister Afridi said the fiscal plan is designed to promote public welfare, strengthen education and healthcare services, generate employment opportunities and support sustainable development, laying the foundation for long-term growth and improved quality of life across Khyber Pakhtunkhwa.
