PESHAWAR: Khyber Pakhtunkhwa (KP) will present a budget exceeding Rs2.15 trillion for fiscal year 2026-27 in the provincial assembly today, the budget documents revealed.
According to the draft, the PTI-led provincial government has proposed Rs276.54 billion for health. Of that, 82% is earmarked for ongoing schemes and 18% for new projects.
Education gets the largest share
Primary and secondary education has been allocated Rs363 billion, while higher education gets Rs45 billion. To boost enrollment in settled districts, Rs500 million is set aside, and Rs8.5 billion is proposed for free textbooks in schools.
Jobs, environment and tourism
The budget targets over 50,000 jobs through environmental projects. It also proposes that 40% of revenue from carbon credits go directly to local communities. For tourism, more than Rs12 billion is allocated, with a goal, backed by the World Bank, to provide facilities for 5 million tourists.
Fiscal numbers
KP’s total estimated revenue for 2026-27 is Rs2.305 trillion. The province expects Rs1.32 trillion from the federal divisible pool. Provincial tax collection is targeted at Rs99 billion and non-tax revenue at Rs51 billion. Net hydel profit is projected at Rs36 billion. The merged tribal districts will receive Rs321 billion.
Current expenditures for settled districts are estimated at Rs1.545 trillion, while development spending under the Annual Development Programme is pegged at Rs444 billion, down from earlier estimates.
In the first nine months of the outgoing year, total spending stood at Rs988 billion, with Rs431 billion going to salaries. For the next year, salary costs are likely to rise 13% and pension costs 17%. Provincial own-source revenue is expected at Rs150 billion.
The budget session is expected to start later today with a detailed breakdown of allocations by department.
