PESHAWAR: The Khyber Pakhtunkhwa government on Thursday presented a Rs2.17 trillion Budget 2026-27, prioritizing public welfare, security, education, healthcare, and infrastructure development. Chief Minister Sohail Afridi, while presenting the budget in the provincial assembly, announced that the province would manage a Rs48 billion budget deficit through its own resources, avoiding any new borrowing.
The total budget outlay stands at Rs2,170 billion, compared to expected receipts of Rs2,122 billion. Of the total allocation, Rs1,645.7 billion has been earmarked for current expenditures, while Rs524.3 billion will fund the Annual Development Programme (ADP).
The provincial government aims to strengthen its financial independence by significantly increasing revenue collection. KP’s Own Source Revenue target has been set at Rs182.4 billion, up from Rs129 billion last year. The province also expects Rs1,240.7 billion from the federal divisible pool and Rs116.8 billion in net hydel profits.
A major portion of the budget has been allocated to social welfare sectors. In healthcare, Rs50.4 billion has been earmarked for the Sehat Card Plus programme, while Medical Teaching Institutions will receive Rs80 billion. An additional Rs14.26 billion has been allocated for medicines in government hospitals.
Education remains a key focus, with Rs5 billion allocated for out-of-school children, Rs8.5 billion for free textbooks, and Rs11.85 billion in grants for public universities. The government also announced interest-free student loans, an Insaf Female & Orphan Education Card, and a Women Economic Empowerment Endowment Fund.
Security has received significant attention, with the police budget increased to Rs191.39 billion for modernization, Safe City projects, and enhanced law enforcement capabilities. Infrastructure projects include Rs52.9 billion for road development and Rs12.7 billion for clean drinking water schemes.
The government has also allocated Rs272.8 billion for the Merged Districts, including Rs92.9 billion for development initiatives. New reforms focus on digital revenue systems, transparency, debt management, and the establishment of a Disaster Risk Management Fund and Provincial Takaful Insurance Company.
