PESHAWAR – The Khyber Pakhtunkhwa government is preparing to present a Rs2.15 trillion budget for the fiscal year 2026-27. The proposed budget focuses on education, healthcare, tourism, environmental projects, and employment opportunities.
According to budget documents, the province is planning major investments across different sectors. However, increasing financial commitments remain a challenge for the provincial government.
The documents show that government employees’ expenses are expected to increase in the upcoming fiscal year. The salary increment in overall salary-related spending is projected at 13 percent, while pension costs are likely to rise by 17 percent.
The increase in salary expenses is expected to add pressure on provincial finances. Authorities will need to manage growing expenditures while maintaining development projects and public services.
The health sector has received significant attention in the proposed budget. The government has allocated Rs276.54 billion for healthcare services. Most of the amount will be used for ongoing projects, while some funds will support new health initiatives.
Education is another major priority in the budget plan. A total of Rs363 billion has been proposed for primary and secondary education. An additional Rs45 billion has been allocated for higher education.
The government has also planned several education-focused initiatives. Around Rs500 million will be spent on increasing school enrollment in settled districts. Meanwhile, Rs8.5 billion has been reserved for providing free textbooks to students.
The budget also highlights environmental development and job creation. The provincial government aims to create over 50,000 employment opportunities through green initiatives. It has also proposed giving 40 percent of carbon-related revenues to local communities.
Tourism development has also received importance in the financial plan. More than Rs12 billion has been proposed for tourism projects. The government aims to improve facilities for millions of visitors through programmes supported by the World Bank.
Budget records show that provincial spending reached Rs988 billion during the first nine months of the current fiscal year. Around Rs431 billion of this amount was spent on salaries.
For the next fiscal year, the government expects Rs150 billion in provincial revenue generation. Total income is estimated at Rs2.305 trillion, including funds from the federal divisible pool.
The proposed budget includes Rs1.545 trillion for current expenses in settled districts. Around Rs426 billion has been allocated for development projects. Another Rs321 billion has been reserved for merged districts.
Officials believe the budget will support economic growth and public welfare. However, rising expenses, including the expected salary increment and pension burden, remain key financial concerns for the province.
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The government will need to balance development priorities with increasing administrative costs. The proposed salary increment spending reflects the growing financial responsibilities faced by Khyber Pakhtunkhwa in the coming fiscal year.
