By: Muhammad Ijaz Afridi
PESHAWAR: The Finance Department of the Khyber Pakhtunkhwa (KP) government has issued a development budget release policy for the financial year 2025-26.
According to a letter issued by the Khyber Pakhtunkhwa Finance Department to all administrative secretaries and other concerned authorities, funds for the province’s development schemes will be released in phases to ensure transparent and effective use of the budget.
The release policy issued by the Khyber Pakhtunkhwa Finance Department for the current financial year states that 20 percent of the funds will be released in the first quarter for ongoing schemes, while 25 percent, 25 percent and the remaining 30 percent of the funds will be released in the fourth quarter, subject to the availability of resources.
Funds for new schemes will be released after the recommendation and administrative approval of the relevant departments. Similarly, funds for schemes with R status in the ADP 2025-26 will be provided based on notified approval.
The policy has clarified that no reallocation of funds within any sector will be allowed in the first two quarters of the financial year. However, after two quarters, transfer of funds will be allowed on the recommendation of the departments.
The ongoing policy regarding ongoing expenditure for the current financial year has directed all administrative departments to complete the budget entry on the SAP system, 50 percent of the budget funds will be released initially, salaries, pensions, utility bills, medicines, food, expenses of prisoners, scholarships, examination fees, and essential services will be released on priority basis.
The policy states that all releases will be made through the SAP system itself. The policy emphasises preventing unnecessary expenditure, avoiding budget wastage, and performance-based funding, while funds for projects facing slowdown can be frozen or transferred to other active projects.
Read also: KP govt, Shangla Jirga sign agreements on new public welfare package
