KP Assembly begins pre-budget debate, finance adviser hopes a tax-free budget 2026-27

PESHAWAR, Mar 30 (APP):The Khyber Pakhtunkhwa Assembly on Monday commenced pre-budget debate for the fiscal year 2026-27, with Adviser to Chief Minister on Finance Muzzammil Aslam outlining key financial indicators and challenges faced by the province.

Opening the discussion, he said the previous budget had projected total revenue at Rs2,119 billion and expenditures at Rs1,962 billion, resulting in a surplus of Rs157 billion.

He emphasized that the province formulates its budget based on its own resources and expenditures.

Highlighting expenditures, he said the provincial government allocated substantial funds for merged districts.

He added that the province had spent Rs10 billion on flood response, over Rs12 billion on the Ramazan package, Rs28.6 billion for Counter Terrorism Department and Special Branch operations, and Rs15 billion on internally displaced persons.

He acknowledged a projected revenue shortfall of Rs90 to Rs100 billion, stating that due to increased expenditures, the earlier projected surplus might not be maintained.

The adviser also listed additional unplanned expenditures, including funds for Peshawar’s beautification, Bus Rapid Transit operations, a subsidy package for motorcyclists, and development initiatives in education and health sectors.

He said teacher vacancies had been filled, Parent-Teacher Council funds increased, and recruitment had been made for sanitation initiatives.

He expressed confidence that the province’s financial position had stabilized over the past two years and hoped to present a tax-free budget in the upcoming fiscal year.