The PTI-led Khyber-Pakhtunkhwa government on Friday presented a surplus budget of RS2,119 billion for the 2025-26 financial year, with no new taxes, a salary increase of 10% and a 7% pension hike for government employees.
The budget session, the chairman of the speaker Babar Salim Swati, began with the recitation of the Holy Qur’an.
Khyber-Pakhtunkhwa Chief Minister Ali Ameen Gandapur, opposition leader Dr. Ebad Khan, PPP parliamentary leader Ahmed Kundi and leaders for all parties were present.
At the beginning of the session, opposition members gathered in front of the speaker’s desk and carry posters and banners carrying slogans against alleged corruption and nepotism in the province.
In the past, Governor Faisal Karim Kundi immediately rejected the budget and emphasized that he would not act under political pressure. He emphasized that although he was legally bound to respond within 14 days, there was no obligation to comply immediately, especially under what he called unnecessary influence from the main minister or other quarters.
The minister has sent a summary to the governor and requested to convene the assembly’s budget session, but the governor has chosen not to return the summary, which has led to a delay in planning the session.
Presentation of the annual budget announced to Finance Minister Aftab Alam that estimated expenses for the financial year 2025-26 would total RS1,962 billion with an expected profit of RS157 billion.
By giving a breakdown, he said the government expects to receive RS292,340 billion from the federal government of the merged tribal districts. This includes RS80 billion in current budget grants, RS39,600 under the Annual Development Program (ADP), RS50 billion through the accelerated implementation program (AIP), RS42,740 billion as Inter-province share and RS17 billion for temporary exposed persons (TDPS).
The minister added that the province expects RS3,293 billion from the public sector development program (PSDP), RS1,506,92 billion in federal transfers, RS129 billion from provincial own sources and RS10,250 billion.
He said RS137,912 billion would be collected through the one percentage of the divisible pool awarded to the war on terror, RS57,115 billion as just transfers under gas and oil -royalties, RS58,151 billion from Wallfall Levy, RS34,580 billion.
The finance minister added that no new taxes have been introduced in the budget. Instead, the tax base has been expanded with expected tax revenue of RS83,500 billion and non-tax revenue of RS45,500 billion for the coming financial year.
Similarly, the other receipts of RS10.25 billion would include capital income of RS0,250 billion and RS10 billion other ways and funds and RS1147,761 billion as a federal tax task.
The Minister said the government has estimated RS1,255 billion current expenses for settled areas, including RS288,514 billion for provincial wages, RS288,609 billion TEHSIL salaries, RS190.297 billion for pension, RS334,028 billion for non-salonic expenses, RS65,657 billion on medical teaching (MT (MT RS37,545 billion Non-salary costs for Tehsils, RS40,350 billion capital costs and RS10 billion under the head of “other ways and funds”. Billions for provincial wages, RS46,865 billion for TEHSIL salaries, RS4,670 billion.
