KP Govt presents Rs2.17 trln budget for FY 2026–27, carrying overall deficit of Rs. 48 billion

PESHAWAR, (APP - UrduPoint / Pakistan Point News - 19th Jun, 2026) The Khyber Pakhtunkhwa government on Friday presented a Rs2.17 trillion budget for the fiscal year 2026–27, outlining major allocations for development projects, social sectors, governance reforms, and law and order, carrying overall deficit of Rs. 48 billion.

Presenting KP budget for financial year 2026-27 with speaker Babar Salim Swati in chair, Chief Minister Khyber Pakhtunkhwa Sohail Afridi said that Rs524 billion has been proposed for the Annual Development Programme (ADP), while Rs1.645 trillion has been earmarked for current expenditures. The overall budget deficit has been estimated at Rs48 billion. An allocation of Rs35 billion has 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 Rs5,000 in the minimum monthly wage, raising it to Rs45,000.

For law and order, Rs191 billion has been proposed, while Rs200 million has been allocated for the Good Governance Roadmap initiative. Sector-wise allocations include Rs334 billion for health, Rs468 billion for education, Rs90 billion for local government, Rs29 billion for home affairs, Rs14 billion for transport, Rs29 billion for agriculture, Rs42 billion for energy, and Rs28 billion for the Zakat Fund.

Under social protection initiatives, Rs15 billion has been proposed for the Ehsaas Mustahiq Programme, Rs50 billion for the Health Card Programme, Rs2 billion for the Ehsaas Kisan Programme, and another Rs2 billion for interest-free loans to facilitate overseas employment seekers. In addition, Rs51 million has been allocated for self-reliance initiatives for minority communities.

For health infrastructure, Rs80 billion has been proposed for MTI hospitals across the province.

In the development sector, Rs36 billion has been allocated for the Peshawar Revival Programme, Rs7.5 billion for the Peshawar Bus Rapid Transit (BRT) project, and Rs4 billion for the Khushhal Hazara Programme. The provincial government has also proposed Rs2.5 billion for electric bikes and rickshaw schemes to promote eco-friendly transport.

Earlier during the budget speech, Chief Minister Sohail Afridi said the government had focused on public service delivery, transparency, austerity, and good governance despite limited financial resources.

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He said the budget reflected a people-centric vision aimed at social protection, sustainable development, and inclusive growth.

He added that revenue performance had shown improvement, with Rs102 billion collected in the first 10 months of FY 2025–26, including Rs69.7 billion in tax revenue and Rs32.3 billion in non-tax revenue. The Khyber Pakhtunkhwa Revenue Authority contributed Rs43.698 billion, and the province was expected to achieve its Rs129 billion annual target.

CM KP said budget revolved around law and order, youth empowerment and good governance.

He said that people services, social protection , generation employment opportunities through economic development were cornerstone of KP Govt policy.

He said police budget has been significantly enhanced, adding in 2022-23, police budget was Rs. 67 billion that was increased to Rs. 191.39 billion in financial year 2026-07 showing an increase of Rs. 185 percent.

In FY 2026-27, Rs 14.5 billion have been earmarked for police procurement plan under which modern weapons and ammunitions with allocation of Rs. 7.7 billion. For bullet proof vehicles and purchase of troops carriers, Rs 1.81 billion while thermal cameras and anti-drones system, jammers would be purchased with allocation of Rs. 1.27 billion. Similarly, Rs. 7.9 billion have been allocated for month operational support of police while Rs. 1.78 billion for establishment of safe city in district Upper and Lower South Waziristan, Orakzai and Kurram besides Rs. 1.6 billion have been allocated for district Khyber, Mohmand and Bajaur.

He said Govt was focusing on protection of water resources, strengthening of climate and green growth besides digital Khyber Pakthunkhwa.

Khyber Pakthunkhwa Government announced seven percent increase in salaries and pension of its employees in provincial budget 2026-27.

Chief Minister Khyber Pakthunkhwa Sohail Afridi said that merger of adhoc relief of 2023 and 2025 in basic pay have also been proposed in the budget besides introduction of house requisition allowance for employees of secretariat to addressing their accommodation problems.

He also announced 50 percent increase in conveyance allowance and increase of special allowance from Rs 6,000 to Rs10,000. The minimum wages was increased from Rs 40,000 to Rs 45,000 to provide relief to labourers and working class.

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