Peshawar (Web Desk): The Khyber Pakhtunkhwa (KP) government on Friday unveiled a surplus budget worth Rs2,119 billion for the fiscal year 2025-26, announcing no new taxes along with a 10% increase in salaries and a 7% rise in pensions for government employees.
While presenting the budget, Finance Minister Aftab Alam stated that total estimated expenditures for the upcoming fiscal year are projected at Rs1,962 billion, resulting in a surplus of Rs157 billion.
Providing further details, the minister informed that the province anticipates receiving Rs292.340 billion from the federal government specifically for the merged tribal districts.
This amount comprises Rs80 billion as a current budget grant, Rs39.600 billion for the annual development program, Rs50 billion under the Accelerated Implementation Program (AIP), Rs42.740 billion as the region’s share from other provinces, and Rs17 billion allocated for Temporarily Displaced Persons (TDPs).
He added that Rs3.293 billion would be acquired through the Public Sector Development Program (PSDP), Rs1,506.92 billion from federal receipts, Rs129 billion from the province’s own income, and Rs10.250 billion through other miscellaneous receipts.
In addition, Rs291.340 million are expected from receipts tied to the merged districts and Rs177.188 billion from assistance on federally funded projects.
According to him, Rs137.912 billion will be generated from one percent of the divisible pool under the war on terror allocation.
The province will also receive Rs57.115 billion as straight transfers for gas and oil royalties, Rs58.151 billion from the windfall levy on oil, Rs34.580 billion as the net hydel profit for the current year, and Rs71.410 billion as arrears of net hydel profit.
The finance minister clarified that the budget imposes no new taxes; however, efforts have been made to expand the existing tax base.
Expected tax revenues for the year stand at Rs83.500 billion, with non-tax revenues projected at Rs45.500 billion.
Additionally, other receipts totaling Rs10.25 billion will include Rs0.250 billion in capital receipts and Rs10 billion through various ways and means, while Rs1,147.761 billion is expected to be collected under federal tax assignments.