KP all set to unveil Rs2.1tr ‘surplus budget’ with significant allocations for education

PESHAWAR: The Khyber Pakhtunkhwa (KP) government will present a Rs2,100 billion ‘surplus budget’ for the fiscal year 2025–26 in the provincial assembly on Friday (tomorrow).

The total size of the provincial budget for the outgoing fiscal year was Rs1,754 billion.

The new budget has proposed Rs500 billion for the Annual Development Programme (ADP).

The provincial government has proposed a 10 per cent increase in salaries of government employees and a 7 per cent raise in pensions for retired employees.

According to sources, the Rs500 billion ADP allocation includes Rs234 billion for local and district-level development projects and Rs177 billion for foreign-funded projects.

Additionally, Rs39 billion have been allocated for the ADP of merged districts and Rs50 billion for the Accelerated Implementation Programme (AIP).

The KP government has increased the total budget for law and order and police by 27 per cent, setting aside Rs157 billion.

Furthermore, Rs47 billion have been allocated for the Sehat Card health insurance programme, Rs59 billion for higher education and Rs276 billion for elementary and secondary education.

The new budget has not introduced any new taxes, though it has proposed an increase in mineral royalty.

The provincial government has also decided not to impose provincial taxes in the Malakand Division and merged districts.

Sources said that the budget has estimated Rs1,352 billion in current expenditures, including Rs680 billion for salaries and Rs200 billion for pensions.

In the budget, a total of Rs520 billion has been proposed for non-salary expenditures.

For the fiscal year 2025–26, the province expects to receive Rs1,148 billion from the federal government under the NFC Award, Rs108 billion under net hydel profit (NHP), Rs55 billion from oil and gas royalties and Rs138 billion under the war-on-terror head.