PESHAWAR: The Khyber Pakhtunkhwa (KP) government is all set to present its provincial budget for the fiscal year 2025–26 on June 13.
The budget is expected to have a total outlay of approximately Rs 2,070 billion, covering key areas such as salaries, pensions, development projects, and essential public services. As per official sources, Rs 1,352 billion are likely to be earmarked for current expenditures. The budget also proposes Rs 680 billion for the payment of government employees’ salaries and Rs 200 billion for pensions. Non-salary operational costs are expected to receive around Rs 520 billion.
In line with the federal government’s policies, the KP government is likely to announce a 10% increase in salaries for public sector employees and a 7% hike in pensions for retired government workers. The province is projected to receive Rs 1,148 billion under the National Finance Commission (NFC) Award, which will play a pivotal role in meeting KP’s financial needs for the upcoming year.
A significant allocation is also expected for development projects in sectors like infrastructure, health, education, and social services, ensuring the continuation of key public initiatives.
However, the budget comes at a time of mounting financial pressure, with the province facing delayed federal transfers, fiscal constraints, and persistent security challenges.
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