The government of Khyber Pakhtunkhwa will introduce a budget of more than Rs2 trillion as the budget of the fiscal year 202526, which will be the biggest in the history of the province. The budget, which will be presented on June 13, is development-oriented having an estimated surplus of approximately Rs180 to Rs200 billion and without introducing any new tax.
A huge portion of more than Rs1.8 trillion is allocated to current expenditures, with development programs getting Rs433 billion. These entail mega infrastructure such as PeshawarDI Khan motorway, rural electrification transmission schemes, and the uplift in newly merged tribal districts.
As per the statement made by the government declaring an education emergency, education budget is substantially increased by almost 13 percent. The money will help in the upgrade of school furniture and more teachers allocation in the province. The health sector is not left behind as it is planned to set up four new cardiac centers and increase the Sehat Card program.
In order to get more money, the province considers 40 percent rise in tax collection through the existing mechanisms. Modest increments will be made on tobacco cess and small adjustments on excise duties whereas property taxes are likely to be slightly eased.
The government also intends to increase honoraria paid to artists, initiate Safe City programs in three capital cities, and a seven-year development planning model. A special committee will see that schemes which are almost finished are given first priority.
KP finance team, led by Chief Minister Ali Amin Gandapur, emphasizes fiscal discipline, debt management, and investing publicly in the long term. With an anticipated Rs1.34 trillion in federal transfers, the province has a unique opportunity to transform its finances and deliver public services that last. The budget is expected to enhance the independence of KP and a gradual decline in reliance on federal support.
