PESHAWAR: The Khyber Pakhtunkhwa (KP) government has presented a Rs 2.17 trillion budget for the fiscal year 2026–27 in the provincial assembly, proposing a 7 percent increase in salaries and pensions for government employees alongside major allocations for development and public welfare programmes.
According to budget documents, the Annual Development Programme (ADP) has been set at Rs 524 billion, while current expenditures are estimated at Rs 1.645 trillion. The budget reflects a projected deficit of Rs 48 billion.
Key development and welfare allocations
The government has allocated Rs 35 billion for the development of merged tribal districts. The minimum monthly wage has been proposed to increase by Rs 5,000, raising it from Rs 40,000 to Rs 45,000.
For law and order, Rs 191 billion has been proposed, while Rs 200 million has been allocated for the Good Governance Roadmap initiative.
Under social protection, Rs 15 billion has been earmarked for the Ehsaas Mustahiq Programme and Rs 50 billion for the Health Card Scheme. The government has also proposed Rs 80 billion for MTI hospitals across the province.
Sector-wise budget allocations
The budget includes Rs 36 billion for the Peshawar Uplift Programme, Rs 7.5 billion for the Bus Rapid Transit (BRT), and Rs 4 billion for the Khushhal Hazar Programme.
Other allocations include Rs 334 billion for health, Rs 468 billion for education, Rs 90 billion for local governments, Rs 29 billion for the Home Department, and Rs 14 billion for the transport sector.
Additionally, Rs 29 billion has been allocated for agriculture, Rs 42 billion for energy projects, Rs 28 billion for Zakat programmes, Rs 2.5 billion for electric bikes and rickshaw schemes, and Rs 2 billion for the Ehsaas Kisan Programme. Another Rs 2 billion has been proposed for interest-free loans for overseas employment.
Focus on development and services
Officials said the budget aims to accelerate development, improve public service delivery, and strengthen welfare-oriented initiatives across the province.
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