Budget at glance and key highlights of Khyber Pakhtunkhwa Budget 2026-27

Budget at glance and key highlights of Khyber Pakhtunkhwa Budget 2026-27

PESHAWAR (APP): The key highlights of Khyber Pakthunkhwa budget for fiscal year 2026-27 announced by Chief Minister Sohail Afridi here Friday was below.

1. Total budget outlay is Rs. 2.170 trillion.

2. Annual Development budget is Rs. 524 billion

3. Salaries and pensions of KP Govt employees are ncreased by 7%.

4. Ehsaas Kisan Program carried an allocation of Rs. 2 billion.

5. Electric bikes and rickshaws Initiative gets Rs. 2.5 billion.

6. Rs. 4 billion earmarked for Khushal KP program.

7. Education department to receive Rs. 468 billion.

8. Rs 90 billion allocated for Local Government Department

9. Rs. 29 billion proposed for agriculture sector.

10. Energy Sector to receive Rs. 42 billion.

11. Rs. 14 billion set aside for energy sector 

12. Local Government Department will receive Rs. 90 billion while Bus Rapid Transit (BRT) to get Rs. 7 billion.

13. Ehsaas Mustahiq (Support for Needy Persons) Program was allocated Rs. 15 billion while merged districts budget was proposed as Rs. 35 billion.

14. Rs 191 billion earmarked for police and Rs 80 billion for MTI Hospitals (Medical Teaching Institutions)

15. Rs. 80 billion proposed for Sehat Card Program.

16. It is deficit budget of Rs48 billion 

17. Rs1.645 trillion earmarked for current expenditures. 

18. An allocation of Rs35 billion proposed for the merged tribal districts.

19. Sector-wise allocations include Rs334 billion for health, Rs468 billion for education, Rs90 billion for local government, Rs29 billion for home affairs, Rs14 billion for transport, Rs29 billion for agriculture, Rs42 billion for energy, and Rs28 billion for the Zakat Fund.

20. Rs2 billion esrmarked for the Ehsaas Kisan Programme, and another Rs2 billion for interest-free loans to facilitate overseas employment seekers. 

21. Rs51 million allocated for self-reliance initiatives for minority communities.

22. Rs36 billion allocated for the Peshawar Revival Programme and Rs4 billion for the Khushhal Hazara Programme. 

23. Rs2.5 billion proposed for electric bikes and rickshaw schemes.

24. Reducing Infrastructure Development Cess (IDC) from 2% to 0.75% proposed.

25. A property tax exemption for residential and commercial properties up to 5 marlas in size, benefiting approximately 200,000 households proposed.

26. To support the tourism and hospitality sector, the budget also proposes reducing the hotel bed tax from 7% to 5%.

27. Abolition of professional tax on individuals earning the minimum monthly income, providing relief to low-income earners announced. 

28. Gvernment employees in Basic Pay Scales (BPS) 1 to 6 are proposed to receive a complete exemption from professional tax.

29. To encourage industrial development, the government has decided to offer a 30% discount on outstanding tax arrears for industrial buildings, easing the financial burden on industrialists.

30. The existing tax relief policy for the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) will remain in place. No new taxes will be imposed in these regions during the 2026–27 fiscal year.