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Khyber Pakhtunkhwa Government Presents Rs2,119 Billion Surplus Budget for 2025-26

Strategic Insights

— 1 min read

The Khyber Pakhtunkhwa (KP) government has unveiled a Rs2,119 billion surplus budget for the fiscal year 2025-26, highlighting a 10% increase in salaries and a 7% raise in pensions for government employees. The budget, presented by KP Finance Minister Aftab Alam, projects total expenditures of Rs1,962 billion, resulting in a surplus of Rs157 billion. The budget places emphasis on development, social sector uplift, and economic relief measures, with a focus on improving service delivery and infrastructure development across the province.

Key Takeaways:

  • The KP government has projected a surplus of Rs157 billion for the fiscal year 2025-26, with total expenditures of Rs1,962 billion.
  • A 10% increase in salaries and a 7% raise in pensions has been announced for government employees.
  • The budget allocates Rs5 billion specifically for education, with an 11% hike in the education budget and a special education emergency declared.
  • The health budget has been increased by 19%, with Rs11.9 billion allocated for medicines and expanded coverage under the Sehat Card Plus program.
  • Rs29.6 billion has been proposed for the energy and power sector, including funding for the 84MW Gorkin-Matiltan Hydropower Project and solarization of worship places.
  • The irrigation sector is set to receive Rs45.5 billion for water management initiatives to boost agricultural output and resilience in both settled and merged areas.
  • The province aims to broaden the tax base, targeting Rs83.5 billion in tax revenues and Rs45.5 billion in non-tax income.
  • The finance minister emphasized that the 2025-26 budget focuses on development without placing additional tax burdens on the public.

Statistics:

  • Rs2,119 billion: Total size of the surplus budget for 2025-26.
  • Rs1,962 billion: Projected total expenditures for 2025-26.
  • Rs157 billion: Projected surplus for 2025-26.
  • Rs10%: Increase in salaries for government employees.
  • Rs7%: Raise in pensions for government employees.
  • Rs5 billion: Allocation for education.
  • Rs11.9 billion: Allocation for medicines under the health budget.
  • Rs29.6 billion: Proposed for the energy and power sector.
  • Rs45.5 billion: Allocation for irrigation sector.
  • Rs83.5 billion: Target for tax revenues.
  • Rs45.5 billion: Target for non-tax income.

Sources:

  • Pakistan Today - "KP government presents Rs2,119 billion surplus budget for 2025-26"
  • The Express Tribune - "KP budget: Rs2.119 trillion surplus, 10% salary hike, 7% pension rise"
  • Dawn - "KP government presents Rs2,119 billion surplus budget for 2025-26"

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