The KP Budget 2026-27 was presented in the provincial assembly in Khyber Pakhtunkhwa, outlining a total outlay of Rs2.122 trillion along with a projected deficit and major allocations for development, salaries, and social welfare.
Chief Minister Muhammad Sohail Afridi presented the budget in Peshawar, saying the financial plan has been designed to support economic stability while expanding public services across the province.
The budget estimates total expenditure at Rs2.17 trillion against expected revenue of Rs2.122 trillion, creating a deficit of Rs48 billion. Officials said the fiscal framework is based on federal transfers and provincial revenue projections.
A major part of the KP Budget 2026-27 is the Rs524 billion allocation for the Annual Development Programme, which focuses on infrastructure, education, health, and regional development projects.
The government has announced a 7% increase in salaries and pensions for public employees. It has also proposed raising the minimum monthly wage from Rs40,000 to Rs45,000 to support workers facing rising inflation.
On the social protection side, funds have been allocated for key welfare initiatives, including Rs15 billion for the Ehsaas Mustahiq Programme, Rs50 billion for the Health Card scheme, and Rs28 billion for the Zakat programme.
Development spending includes Rs468 billion for education and Rs334 billion for health, showing continued emphasis on human capital investment. The budget also includes Rs52.8 billion for district governments and Rs29 billion for merged tribal districts.
Security and law and order have been allocated Rs191 billion, while Rs80 billion has been set aside for the MTI hospital system. Transport and infrastructure projects, including the Peshawar Bus Rapid Transit system, also receive funding support.
The government reported the creation of 7,952 new jobs during the current fiscal year and the conversion of over 1,100 schools to solar energy systems to reduce costs and improve efficiency.
Relief efforts for flood-affected communities received Rs4.29 billion, reflecting ongoing disaster response measures.
Chief Minister Afridi said the KP Budget 2026-27 prioritises public welfare, economic growth, education, healthcare, and employment generation, aiming for long-term stability and improved service delivery across the province.
