KP sets Rs2.12tr revenue target, eyes Rs1.59tr in federal transfers for FY 2026-27
JAVED KHAN MOHMAND
PESHAWAR
With an estimated fiscal deficit of Rs48 billion, the Khyber Pakhtunkhwa Assembly on Wednesday approved the province’s Rs2.17 trillion budget for the fiscal year 2026-27 after passing 63 demands for grants, while the opposition questioned the government’s economic and development policies.
The assembly session, chaired by Speaker Babar Saleem Swati, was attended by Chief Minister Sohail Afridi, Leader of the Opposition Dr Ibadullah Khan, treasury and opposition lawmakers.
Minister for Law and Finance Aftab Alam, along with other ministers, presented 63 demands for grants and moved amendments to the Annual Development Programme (ADP). After voting on the motions, the speaker disposed of the opposition’s cut motions under the assembly rules, paving the way for approval of the budget.
The assembly approved a total allocation of Rs2.17 trillion for the next fiscal year, including Rs627.9 million for the provincial assembly, Rs14.73 billion for the finance department, over Rs4.56 billion for the home department, Rs138 billion for the police, Rs52.46 billion for higher education, Rs262 billion for the health sector, Rs7.77 billion for communications and works, Rs11.27 billion for irrigation, Rs2.27 billion for urban development, Rs1.24 billion for population welfare and Rs21.13 billion for elementary and secondary education.
Speaking after the budget’s passage, Opposition Leader Dr Ibadullah Khan criticised the Pakistan Tehreek-i-Insaf (PTI) government’s performance, alleging that despite remaining in power in the province for 13 years, it had failed to fully utilise KP’s potential in sectors such as minerals, tourism and hydropower.
He claimed the province’s debt burden had increased during the PTI’s tenure and alleged that development had remained below expectations. The opposition leader also complained that opposition lawmakers had not been provided development funds, urging the government to adopt an inclusive approach and take all political stakeholders along in the province’s development process.
According to the budget documents, the provincial government expects to receive Rs1.59 trillion through federal transfers during the next fiscal year, while provincial receipts have been projected at Rs182.4 billion.
The overall revenue target has been set at Rs2.12 trillion against budgeted expenditures of Rs2.17 trillion, leaving an estimated fiscal deficit of Rs48 billion.
Of the total outlay, Rs1.64 trillion has been earmarked for current expenditure, while Rs524.2 billion has been allocated for the Annual Development Programme (ADP).
The budget also projects Rs199 billion in grants from the federal government for the merged districts, while foreign project assistance has been estimated at Rs150 billion. In addition, the province expects to receive Rs5.1 billion in federal development and non-development grants under the Public Sector Development Programme (PSDP).
