KP unveils Rs2,119b surplus budget for 2025-26
Grants 10pc pay raise, 7pc pension increase for govt employees. Announce no new tax. Rs 35bln allocated for HealthCard
PESHAWAR
The Khyber Pakhtunkhwa (KP) provincial government, led by Pakistan Tehreek-e-Insaf, on Friday presented its budget for the financial year 2025-26 with a total outlay of Rs 2119 billion.
The budget, presented by KP Finance Minister Aftab Alam Afridi in a provincial assembly session presided over by Speaker Babar Saleem Swati.
Of the total outlay, Rs 547 billion has been allocated for the Annual Development Program (ADP), with the total expenditure estimated at Rs 2119 billion.
According to budget documents, the provincial government has allocated a significant portion of the budget for development programs, including Rs 195 billion for the provincial Annual Development Program (ADP), Rs 39 billion for district development, and Rs 39.6 billion for merged districts.
In terms of revenue, the estimated figure for 2025-26 stands at Rs 129 billion.
The government has not imposed any new taxes in this budget. Key proposals for tax relief include a reduction in stamp duty on the allotment and transfer of residential and commercial properties from 2% to 1%, a reduction in the hotel bed tax from 10% to 7%, and the abolition of professional tax for individuals earning less than Rs 36,000 per month.
Additionally, the government has waived the registration fee and token tax for eco-friendly electric vehicles, and provided tax exemptions on properties up to 4.9 marla. Special tax relief has been granted to former FATA and PATA regions, where no new taxes will be imposed for the fiscal year 2025-26.
In the health sector, Aftab Alama said, the budget has been increased by 19%, from Rs 232 billion to Rs 276 billion.
He said Rs 35 billion has been allocated for the Health Card Plus program in urban districts, while Rs 6 billion will be spent on the Health Facilitation Program for merged districts.
The provincial government has allocated Rs 1.2 billion for the improvement of 25,000 primary health centers and Rs 1 billion for the establishment of nursing colleges in Upper Chitral. Upgrades are also planned for Sadda Hospital in Kurram district.
