KP cabinet approves Rs1.52 Trln budget for FY 2026–27, prioritises development spending

PESHAWAR, Jun 19 (APP):The Khyber Pakhtunkhwa Cabinet on Friday approved the provincial budget for the fiscal year 2026–27, setting a total outlay of Rs1.52 trillion and outlining development and public service priorities for the coming year.

According to official budget documents, the province is projecting a budget deficit of Rs48 billion, while maintaining a strong focus on infrastructure expansion, service delivery and development initiatives.

The government proposed Rs 519.10 billion for the Annual Development Programme (ADP), covering projects across key sectors of the province.

The development portfolio includes 2,765 schemes, among them 1,201 new projects, aimed at supporting long-term economic and social growth.

A major share of development funding has been allocated to settled districts, while dedicated allocations have also been proposed for merged districts and special development initiatives.

Sector-wise allocations indicate that roads and infrastructure development received the highest proposed funding, followed by urban development, public safety, healthcare, water supply, education, sports and tourism.

The cabinet also approved adjustments to the provincial tax structure, including the withdrawal of selected taxes as part of broader fiscal measures.

Budget documents estimate that the full completion of the development portfolio will require Rs 2.448 trillion, with implementation spread over a 7.7-year throw-forward period.

The proposed budget is expected to be presented before the provincial assembly for further legislative proceedings.