The Khyber Pakhtunkhwa government has finalized preparations for its Budget and Annual Development Programme (ADP) for the fiscal year 2026-27, with the total outlay expected to exceed Rs2.3 trillion.
According to official sources, the provincial government is preparing a large financial plan aimed at supporting development projects, public services, and economic growth across the province.
A major portion of the expected revenue will come from federal transfers. Sources indicate that Khyber Pakhtunkhwa is likely to receive around Rs1.671 trillion from the federal government during the next fiscal year.
In addition to federal funds, the province is expected to receive approximately Rs107 billion in net hydel profit. This remains one of the most important revenue sources for Khyber Pakhtunkhwa.
Officials also expect the province to generate significant income from its own resources. The government estimates that around Rs150 billion will be raised through provincial revenues.
Out of this amount, nearly Rs99 billion is expected to come from tax collection. The remaining Rs51 billion is projected to be generated through non-tax revenues and other income sources.
The upcoming Budget is also expected to include substantial allocations for the merged districts. Sources say around Rs334 billion may be reserved for development and ongoing projects in these areas.
The funds are expected to support infrastructure improvement, public services, education, healthcare, and other development initiatives. The government aims to accelerate progress in districts that were merged into the province in recent years.
Meanwhile, the proposed Budget for the settled districts of Khyber Pakhtunkhwa is expected to reach Rs1.971 trillion. This allocation reflects the government’s effort to balance development spending with administrative and operational requirements.
Officials believe the financial plan will help maintain ongoing projects while creating room for new development schemes across the province.
The Annual Development Programme is expected to focus on infrastructure, roads, health facilities, education projects, and economic development initiatives. Authorities hope these investments will contribute to long-term growth and improve public services.
The provincial government is expected to formally present the Budget in the coming days. Once approved, it will outline spending priorities and financial targets for the 2026-27 fiscal year.
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With a total size exceeding Rs2.3 trillion, the upcoming budget is set to be one of the largest in the province’s history, highlighting the government’s focus on development, revenue generation, and public welfare.
