PESHAWAR: The Khyber Pakhtunkhwa government presenting its budget today for the 2026-27 fiscal year, proposing a total outlay of more than Rs2.15 trillion with a strong focus on public services, development and revenue growth.
According to budget documents, the health sector has been allocated Rs276.54 billion, with 82 percent reserved for ongoing projects and 18 percent for new initiatives. The government also plans to continue funding 93 development schemes aimed at improving healthcare facilities across the province.
The province expects to generate Rs150 billion through its own resources during the new fiscal year, while education remains a top priority. The budget proposes Rs363 billion for primary and secondary education and Rs45 billion for higher education.
To encourage school enrolment in settled districts, Rs500 million has been earmarked, while Rs8.5 billion has been allocated for the distribution of free textbooks to students.
Environmental sustainability is another major focus, with green initiatives expected to create more than 50,000 jobs. The government has also proposed allocating 40 percent of carbon-related revenues to local communities.
Tourism is set to receive over Rs12 billion, with World Bank-backed projects aimed at enhancing facilities for nearly five million visitors.
Budget figures show that provincial spending reached Rs988 billion during the first nine months of the current fiscal year, including Rs431 billion on salaries. Salary expenditures are projected to increase by 13 percent in 2026-27, while pension payments are expected to rise by 17 percent.
Meanwhile, the estimated Annual Development Programme (ADP) has been revised to Rs444 billion, reflecting the government’s updated fiscal priorities.
