The Khyber Pakhtunkhwa government on Friday presented a Rs 2.17 trillion budget for the 2026-27 fiscal year, combining employee relief measures with increased spending on development, healthcare, education, and public services despite projecting a Rs 48 billion deficit.

Chief Minister Sohail Afridi tabled the budget in the KP Assembly, proposing Rs 524 billion for the Annual Development Programme (ADP) and Rs 1.645 trillion for current expenditures. The budget also reserves Rs 35 billion for the merged tribal districts.

To provide financial relief, the provincial government has proposed a 7 percent increase in salaries and pensions for government employees. It has also recommended raising the minimum monthly wage to Rs 45,000, an increase of Rs 5,000 from the current level.

The proposed budget allocates Rs 468 billion to education and Rs 334 billion to the health sector. It also sets aside Rs 191 billion for law and order, Rs 90 billion for local government, Rs 42 billion for energy, Rs 29 billion each for agriculture and the home department, Rs 28 billion for the Zakat Fund, and Rs 14 billion for transport.

Under social protection initiatives, the government has earmarked Rs 50 billion for the Health Card Program, Rs 15 billion for the Ehsaas Mustahiq Program, and Rs 80 billion for Medical Teaching Institutions (MTI) hospitals.

Development spending includes Rs 36 billion for the Peshawar Rehabilitation Program, Rs 7.5 billion for the Peshawar Bus Rapid Transit (BRT) system, and Rs 4 billion for the Khushhal Hazara Program.

The budget also proposes Rs 2 billion for the Ehsaas Kisan Program, Rs 2 billion in interest-free loans for overseas job seekers, Rs 2.5 billion for an electric bikes and rickshaws scheme, and Rs 51 million to support the economic empowerment of minority communities.

The budget proposals will now be debated in the KP Assembly before a final vote on their approval.