KP government announces salary hike, major welfare spending and Rs524 billion development programme in FY2026–27 budget
Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Friday presented a Rs2.170 trillion provincial budget for fiscal year 2026–27, outlining major allocations for development projects, social welfare, healthcare, education and law and order, alongside a projected deficit of Rs48 billion.
The KP Budget 2026–27 places strong emphasis on public service delivery and infrastructure expansion, with Rs524 billion allocated for the Annual Development Programme (ADP) and Rs1.645 trillion earmarked for current expenditures. An additional Rs35 billion has been set aside for merged tribal districts.
The government also announced a 7 per cent increase in salaries and pensions for public sector employees, alongside an increase in the minimum monthly wage by Rs5,000, taking it to Rs45,000.
Development and fiscal priorities
The KP Budget 2026–27 reflects a continued focus on development-led growth, with authorities highlighting investments in infrastructure, governance reforms and service delivery improvements across the province.
Officials said the fiscal plan aims to balance development needs with fiscal discipline, while ensuring targeted relief for government employees and low-income workers.
Law and order and governance spending
Under the KP Budget 2026–27, Rs191 billion has been allocated for law and order, along with Rs200 million for the Good Governance Road Map initiative aimed at improving administrative efficiency.
The budget also prioritises institutional strengthening and public safety measures to enhance overall governance outcomes.
Social welfare and healthcare expansion
A key feature of the KP Budget 2026–27 is its strong social protection component, including Rs15 billion for the Ehsaas Mustahiq Programme and Rs50 billion for the Health Card Programme.
Health services have been further strengthened with Rs80 billion allocated for MTI hospitals, while Rs36 billion has been earmarked for the Peshawar Rehabilitation Programme.
Education and human development focus
Education remains a top priority in the KP Budget 2026–27, with Rs468 billion allocated to the sector, alongside Rs334 billion for health spending, underscoring the government’s emphasis on human capital development.
Additional initiatives include funding for transport, agriculture, energy and local government services to support broader economic activity.
Welfare-driven initiatives
The KP Budget 2026–27 also includes allocations for minority empowerment, interest-free loans for overseas employment and a Rs2.5 billion electric bikes and rickshaws scheme aimed at promoting affordable and environmentally friendly transport.
Officials said the budget reflects a mix of fiscal prudence and social uplift, focusing on development, welfare and long-term economic stability across the province.
