PESHAWAR: The Khyber Pakhtunkhwa government is set to present its budget for the new fiscal year on Friday, with a projected deficit of more than Rs50 billion, officials said.
The provincial budget is estimated at over Rs2.17 trillion. Authorities do not plan to introduce new taxes, although they may revise existing tax rates.
According to government sources, the Annual Development Programme (ADP) has been proposed at more than Rs519 billion. The provincial government plans to finance Rs235 billion of development spending from its own resources.
More than Rs150 billion is expected to be spent on development projects funded by international donor agencies.
The proposed development package also includes Rs27 billion for the merged tribal districts and Rs52 billion under a fast-track development programme. The government has recommended allocating a total of Rs55 billion for local governments.
The budget proposes a 7% increase in salaries and pensions for government employees. It also includes a plan to merge ad hoc relief allowances granted between 2022 and 2025 into basic pay.
The province expects to receive Rs1.443 trillion from the federal government. It also anticipates more than Rs105 billion in net hydropower profits, while provincial own-source revenues are projected at Rs180 billion.
Sources said the government plans to increase funding for the Sehat Card health insurance programme, allocate Rs50 billion for youth employment initiatives, and introduce a loan scheme to support the purchase of electric three-wheel vehicles.
The budget is expected to be debated in the provincial assembly following its presentation later in the day.
