The total outlay of the Khyber Pakhtunkhwa budget for the fiscal year 2026-27 has been proposed at more than Rs21.5 trillion. According to budget documents, major allocations have been suggested for the health and education sectors, along with initiatives aimed at promoting tourism, environmental sustainability, and increasing provincial revenue.
Health Sector Allocations
A total of Rs276.54 billion has been earmarked for the health sector. Of this amount, 82% is expected to be spent on ongoing projects, while the remaining 18% will go towards new schemes. Funds have also been proposed for 93 ongoing development projects in the health sector.
Education Sector Funding
For the education sector, Rs363 billion has been proposed for primary and secondary education, while higher education is set to receive Rs45 billion. To encourage student enrolment in settled districts, the government has proposed an allocation of Rs500 million. In addition, Rs8.5 billion has been set aside for the provision of free textbooks to students across the province.
Environmental and Tourism Initiatives
The budget also highlights environmental initiatives, with a target of creating more than 50,000 jobs through green projects. The government has proposed allocating 40% of carbon-related revenues to local communities. To boost the tourism sector, more than Rs12 billion has been proposed. With support from the World Bank, the province plans to improve facilities for around five million tourists.
Revenue and Expenditure Details
The provincial government expects to generate Rs150 billion in revenue from its own resources during the upcoming financial year, the documents show. Budget documents further reveal that total spending during the first nine months of the current fiscal year reached Rs988 billion, of which Rs431 billion was spent on salaries. Compared to the previous fiscal year, salary expenditures are expected to increase by 13%, while pension-related expenses are likely to rise by 17%. Meanwhile, the estimated size of the Annual Development Programme (ADP) has been revised downward to Rs444 billion.
