The Khyber Pakhtunkhwa government has consulted all stakeholders, including experts and chambers of commerce, to set priorities for the 2026-27 budget, resulting in tax reductions compared to the previous fiscal year. The announcement was made by Advisor to the KP Chief Minister on Finance Muzzammil Aslam during a post-budget news conference at the Civil Secretariat in Peshawar on Saturday.
Budget Overview and Key Figures
Aslam stated that the total budget for financial year 2026-27 is Rs2,170 billion, up from Rs1,962 billion in 2025-26. The development budget stands at Rs524.3 billion, with the provincial Annual Development Programme (ADP) set at Rs235 billion, reflecting a 21% increase. The tehsil ADP budget is Rs47 billion, also a 21% increase, while the ADP for merged districts is Rs34.8 billion, a 13% increase.
New Initiatives and Ongoing Projects
New initiatives in the 2026-27 budget include the Ehsas Kissan Ka program, an endowment fund for minorities, interest-free loans for university students and overseas immigrant workers, the Insaf Female and Orphan Education Card, free public WiFi for Peshawar, interest-free loans for e-bikes and e-rickshaws, the Ehsas Internship Program, and public sector transport initiatives. Ongoing initiatives include Good Governance projects, the Police Procurement Plan, Police Monthly Operational Support, and the purchase of BRT vehicles.
Healthcare and Merged Districts Funding
Responding to a question, Aslam said that Rs80 billion has been allocated for Medical Teaching Institutes (MTIs) against a demand of Rs112 billion, with plans to strengthen primary healthcare facilities and District Headquarters Hospitals to ease the burden on MTIs. He also noted that the provincial government has spent more in merged districts than the allocation received from the federal government.
Provincial Information Minister Shafi Jan and senior finance department officials were also present at the conference. Aslam emphasized that the government is not confronting the federal government but has set its own priorities based on the province's situation.
