PESHAWAR: The Khyber Pakhtunkhwa government has earmarked Rs 524.3 billion under Annual Development Programme for the Fiscal Year 2026-27, including Rs 235 billion for settled areas with an increase of 21 percent.
For the settled tehsil, ADP budget was Rs 47 billion showing an increase of 21 percent and ADP of merged districts is Rs 34.8 billion with an increase of 13 percent.
A significant portion of the budget had been directed towards infrastructure and development initiatives, according to the budget documents.
The education sector had been allocated Rs 468 billion, while health has received Rs 334 billion, underlining continued investment in human capital.
For district governments, Rs 52.8 billion had been proposed, while Rs 29 billion had been allocated for merged tribal districts. Additionally, Rs 52 billion had been set aside under the Accelerated Implementation Programme (AIP), targeting faster execution of development schemes in sensitive regions.
Rs 524 billion had been proposed for the Annual Development Programme (ADP), while Rs 1.64 trillion had been earmarked for current expenditures.
An allocation of Rs 35 billion had been proposed for the merged tribal districts, reflecting continued focus on their development integration.
The government has proposed a 7 percent increase in salaries and pensions of government employees, along with an increase of Rs 5,000 in the minimum monthly wage, raising it to Rs 45,000.
For law and order, Rs 191 billion had been proposed, while Rs 200 million had been allocated for the Good Governance Roadmap initiative.
Sector-wise allocations include Rs 334 billion for health, Rs 468 billion for education, Rs 90 billion for local government, Rs 29 billion for home affairs, Rs 14 billion for transport, Rs 29 billion for agriculture, Rs 42 billion for energy, and Rs 28 billion for the Zakat Fund.
Under social protection initiatives, Rs 15 billion had been proposed for the Ehsaas Mustahiq Programme, Rs 50 billion for the Health Card Programme, Rs 2 billion for the Ehsaas Kisan Programme, and another Rs 2 billion for interest-free loans to facilitate overseas employment seekers.
Additionally, Rs 51 million had been allocated for self-reliance initiatives for minority communities.
For health infrastructure, Rs 80 billion had been proposed for MTI hospitals across the province.
In the development sector, Rs 36 billion had been allocated for the Peshawar Revival Programme, Rs 7.5 billion for the Peshawar Bus Rapid Transit (BRT) project, and Rs 4 billion for the Khushhal Hazara Programme.
The provincial government has also proposed Rs 2.5 billion for electric bikes and rickshaw schemes to promote eco-friendly transport.
The KP chief minister said that revenue performance had shown improvement, with Rs 102 billion collected in the first 10 months of FY2025–26, including Rs 69.7 billion in tax revenue and Rs 32.3 billion in non-tax revenue.
Copyright Business Recorder, 2026
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