The Khyber Pakhtunkhwa (KP) government on Thursday presented a surplus budget worth Rs. 2,119 billion for the fiscal year 2025–26, with a development outlay of Rs. 547 billion. The budget, tabled in the KP Assembly session chaired by Speaker Babar Saleem, was presented by Law Minister Aftab Alam.
According to the budget documents, the total estimated expenditure stands at Rs. 1,962 billion, leaving a surplus of Rs. 157 billion. The Annual Development Programme (ADP) is proposed at Rs. 547 billion.
Salary, Pension, and Minimum Wage Increases
The government has proposed a 10% increase in salaries for government employees and a 7% increase in pensions.
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Additionally, disparity allowance for employees not receiving executive allowance is proposed to be increased by 15% to 20%. The minimum monthly wage across the province has been raised from Rs. 36,000 to Rs. 40,000.
Revenue and Federal Arrears
The budget reveals a Rs. 267 billion shortfall under the NFC award. It highlights pending federal dues, including Rs. 71 billion in net hydel profits and Rs. 58 billion in oil and gas revenues. The province is also expecting Rs. 177 billion in foreign aid and grants.
The government has earmarked Rs. 1,415 billion for salaries and other expenditures — including Rs. 1,255 billion for settled districts and Rs. 160 billion for merged tribal areas. The estimated revenue for the new fiscal year is Rs. 129 billion.
Tax Relief Measures
The budget proposes a reduction in stamp duty on residential and commercial property allotment and transfers from 2% to 1%. Tax exemption is proposed for properties up to 4.9 marla. The hotel bed tax is suggested to be reduced from 10% to 7%. Professional tax is proposed to be removed for individuals earning up to Rs. 36,000 per month. Electric vehicle registration and token taxes are also proposed to be waived.
Budget Speech Highlights and Assembly Uproar
Law Minister Aftab Alam said that when CM Ali Amin Gandapur took office, the province was in deep financial crisis. Despite receiving Rs. 90 billion less than anticipated this year, the government managed to pay Rs. 49 billion in outstanding liabilities, including Rs. 18 billion in markup.
He said the province has long suffered from terrorism, and the police budget was significantly increased to provide modern weapons, equipment, and protective gear. However, the continuation of the Sehat Card health insurance scheme remains uncertain.
Development allocations for settled districts, initially Rs. 120 billion, were increased by 30% to Rs. 155 billion under the ADP Plus initiative, with Rs. 35 billion already utilized for timely project completion.
Opposition Protests During Budget Session
The session saw intense opposition protests. When Chief Minister Ali Amin Gandapur arrived, he was welcomed by applause from treasury members. In contrast, opposition lawmakers entered the house chanting slogans like "Ali Baba Chalees Chor", carrying placards with slogans such as “Saaf Chali Shafaf Chali, Corruption Sar-e-Aam Chali”. PML-N’s Sobia Shahid even brought a bugle, which she repeatedly blew in protest.
Treasury members responded with counter-sloganeering, standing from their seats. The Speaker requested the opposition leader, Dr. Ibadullah, to intervene, after which the protesting lawmakers were seated.
The KP Assembly also expressed solidarity with Iran during the session.
