PESHAWAR: Khyber Pakhtunkhwa has unveiled a provincial budget of Rs2,119 billion for fiscal year 2025-26.
The finance minister, while presenting the budget for the financial year 2025-26, announced that the provincial government paid off a total of Rs49 billion in outstanding loans during the current fiscal year, including Rs18 billion in markup.
Salaries and Pension
The salaries of government employees have increased by 10 percent while pension increased by 7 percent.
KP received less share in NFC
The minister revealed that the previous KP government had recorded a fiscal surplus of Rs100 billion. However, the federal government deducted Rs42 billion under the National Finance Commission (NFC) Award and the centre also did not pay the total amount – Rs40 billion – for the current expenditures of merged districts.
Aftab Alam highlighted that the federal government slashed billions of rupees from development expenditures. Due to a shortfall of Rs1 trillion in the federal government’s tax collection targets, KP received Rs90 billion less than expected.
Development Budget
The minister stated that the annual development budget has been set at over Rs517 billion, including more than Rs177 billion in foreign grants and loans. The proposed development budget includes 1,349 ongoing and 810 new projects.
Aftab Alam emphasized that 16pc of the annual development program (ADP) has been allocated for road construction, with Rs53.64 billion earmarked for 583 new and existing road schemes.
Health and Education
For health, Rs27 billion has been allocated for 182 ongoing and new projects, while over Rs13 billion has been set aside for 96 primary and secondary education projects. Additionally, Rs6.27 billion has been allocated for 63 higher education schemes.
