PESHAWAR: The Khyber Pakhtunkhwa cabinet, which met in Peshawar on Friday under the chair of Chief Minister Sohail Afridi, has approved the budget for the new fiscal year.
The chief minister signed the budget documents after the cabinet meeting ended.
The provincial cabinet approved a budget with a deficit of Rs48 billion and a total size was set at Rs1.52 trillion.
As many as 902 development projects have been included in the KP budget. Changes in taxes have also been made and approval to abolish some taxes has been given.
According to budget proposals, government employees and pensioners are expected to receive a 7.7 percent increase in salaries and pensions.
Officials from the Finance Department said Rs225 billion has been proposed for the provincial Annual Development Programme (ADP), while an additional Rs150 billion is expected to come through foreign assistance and aid-funded projects.
The road sector is likely to receive the largest allocation, with Rs60 billion proposed for development schemes. More than 2,500 development projects are expected to be included in the upcoming budget.
The province is also expected to receive Rs1.379 trillion from the federal government during the next fiscal year, similar to the current year. In addition, Khyber Pakhtunkhwa is expected to receive Rs139 billion under the one per cent share allocated to provinces affected by terrorism.
The provincial government has proposed allocating Rs50 billion for the Health Card programme in FY2026-27.
Of the total amount, Rs43 billion is earmarked for settled districts, while Rs7 billion has been proposed for residents of the merged tribal districts. According to the Finance Department, the provincial government allocated Rs41 billion for the Health Card scheme during the current fiscal year.
Four days, which include June 22, 23, 24, and 27, were allocated for the debate, and the budget will be approved on the fifth day, June 28, 2026.
The budget session will not be held for four days due to the Ashura holidays.
Copyright Business Recorder, 2026
Comments