KP govt presents Rs2.12trn surplus budget 2025-26 with no new tax
The Khyber Pakhtunkhwa (KP) government on Friday presented Rs2.12 trillion surplus budget for the fiscal year 2025-26 with no new tax and an increase of 10% in salary and 7% in pension of its employees.
Presenting the annual budget, Finance Minister KP Aftab Alam said the estimated annual expenditures for the new fiscal year would be Rs1.962 trillion with a surplus of Rs157 billion.
Giving the break-up, the minister said the government was expecting to get Rs292.340 billion from the federal government for the merged tribal districts including Rs80 billion current budget grant, Rs39.600 annual development programme, Rs50 billion under AIP, Rs42.740 billion as their share from other provinces and Rs17 billion for TDPs.
Sindh CM Murad presents Rs3.45trn provincial budget for FY2025-26
According to the minister, he said Rs3.293 billion would be received from PSDP, Rs1,506.92 billion from the federal receipts, Rs129 billion provincial owns receipts and Rs10.250 other receipts, Rs291.340 million from merged districts receipts and Rs177.188 million from federal projects assistance.
He said no new tax has been imposed in the budget; rather tax net base has been enhanced with Rs83.500 billion tax receipts and Rs45.500 billi on non-tax receipts for the new fiscal year.
Similarly, the other receipts of Rs10.25 billion would include capital receipts of Rs250 million and Rs10 billion in other ways and means and Rs1.14 trillion as federal tax assignment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
20 hours ago
- Business Recorder
Rs3.45trn Sindh budget unveiled
KARACHI: With a deficit of Rs38.458 billion, Chief Minister Sindh Syed Murad Ali Shah unveiled Rs3.45 trillion provincial budget for the fiscal year 25-26 (FY26) in the Sindh Assembly on Friday, proposing a cut in the sales tax on service to 8 percent amid opposition's protest. Speaking at the budget session, the chief minister announced the government's a 'forward-looking development agenda' with scores of 'transformative new initiatives' across the key sectors including education, health, agriculture, infrastructure, social protection, and local governance. 'These initiatives reflect our commitment to equity, innovation, and inclusive growth.' According to the budget documents, the Sindh government budget outlay has been increased by Rs394 billion or 13 percent to Rs3.450 trillion for FY26 compared to Rs3.056 trillion for previous fiscal year. Total receipts of the province are estimated to rise by 12 percent from Rs3.056 trillion in FY25 to Rs3.412 trillion for the next fiscal year. On receipts side, current revenue receipt estimates increased by 10 percent to Rs2.824 trillion including, revenue assignment Rs1.927 trillion, straight transfer Rs116.433 billion, grants to offset losses Rs51.81 billion, provincial tax receipts (excluding GST on services) Rs288 billion and provincial sales tax on services and taxes from agricultural Rs388 billion. In addition, the current capital receipts estimated Rs33 billion, carryover balance Rs100 billion, foreign grants Rs10.838 billion, foreign project assistance RS 366.744 billion and other grants Rs75.58 billion. As per budget estimates, Current Revenue Expenditure (CRE) have been pitched at Rs2.150 trillion, being 12.4 percent higher than budget estimates of Rs1.912 trillion for the FY 2024-25. The increase is mainly due to inflationary impact on the operating expenses, enhancement of grants-in-aid to non-financial institutions including hospitals, public sector universities, local councils, necessary salary raise in shape of relief allowance to the government employees and raise in pension expenditure due to increase in pension. Current capital expenditures estimates; however, increased from Rs184 billion to Rs281.6 billion. The chief minister said that projects under the public health and sustainable development goals are likely to see a budgetary share of Rs45 billion with 50 percent specifically for water sector schemes, supporting clean water access and climate resilience A Rs25 billion of financial allocation is reserved for the home-based solar systems including a portion earmarked to scale decentralised, off-grid solar solutions for household in rural and underserved areas across the province. CM Murad said that the government is set to launch a comprehensive, multi-year agriculture reform program— an ambitious initiative aimed at modernising farming, improving livelihoods, and enhancing food security. He added that the Benazir Hari Card will be the delivery platform for subsidies and services, as so far 200,000 farmers have been enlisted under this program. In next financial year, he said, the number for erecting new homes will rise to around 1.5 million from 1.1 million in the current fiscal year. 'We have opened bank accounts for more than 1.3 million beneficiaries for the rehabilitation of more than 12.3 million flood-affected populations'. The irrigation sector will receive Rs42 billion funds, denoting the Sindh government's commitment to the farmers' community and improvement of irrigation system in the province, he said. The allocation also includes a Rs10 billion block that has been proposed for de-silting of N W Canal and Dadu Canal at the time of Sukkur Barrage closure next year, maintaining irrigation infrastructure and ensuring smooth flow of water into different waterways. The budget estimates for livestock and fisheries sector has been proposed at Rs12.9 billion in a bid along with an amount of Rs120 million earmarked for helping the livestock farmers know about various breeds, modern methods of breeding, fodder cultivations and fishing and aquaculture. In line with the relief measures, the government has proposed 10 percent on an ad-hoc basis allowance for the employees from BPS-1 to BPS-22 so as to equip them to bear the impact of inflation. For the pensioners we have proposed an increase of 7 percent for the next fiscal year. The cumulative impact of these relief measures will be around Rs52 billion per annum, chief minister said. He said that there is a proposal under the government's inclusive policies to scale up the monthly rate of Special Conveyance Allowance from Rs4,000 to Rs6,000 to the differently-abled employees. This measure will have additional financial impact of Rs114.48 million, he added. However, he said that the government's decision about the minimum wage for the labour classis is under consideration keeping view the soaring inflation and rising cost of living. Copyright Business Recorder, 2025
Business Recorder
20 hours ago
- Business Recorder
Sindh sets record with Rs1trn development budget for FY26
KARACHI: Despite mounting fiscal pressures, the Sindh government has allocated a record-breaking development budget of over one trillion rupees for the next fiscal year (FY26)-the highest ever in the province history. The Chief Minister Sindh, Syed Murad Ali Shah, on Friday, in his budget speech for FY26 said that the Annual Development Programme (ADP) for FY26 reflects a strategic balance between fiscal prudence and targeted development. 'With a focus on social sectors, resilience, and equity, the Government of Sindh is committed to ensuring development that is inclusive, climate smart, and aligned with long-term goals,' he added. As per announcement, budget allocation for the provincial development expenditure has been increased by 6 percent from Rs 959.1 billion (FY25) to Rs 1.018 trillion for the next fiscal year. The development outlay for the next fiscal year is also 24 percent higher than actual spending and revised budget estimates of this fiscal year, which was Rs 817.2 billion. The total development expenditure outlay includes Rs 520 billion of Provincial ADP and Rs. 55 billion for district ADP, Rs. 366.7 billion for Foreign Project Assistance and Rs 75.58 billion for federal PSDP schemes. Chief Minister in his budget speech said that despite fiscal pressures, the ADP for FY26 has increased modestly to Rs 1.018 trillion, reflecting the Government's commitment to sustaining development momentum while focusing on efficiency, equity, and economic recovery. The proposed allocations signal a move towards a climate-smart, inclusive, and regionally balanced development agenda, in line with Sindh's longer-term vision. Out of 1,777 ongoing (LTBC) schemes funded in FY25, 1,494 or 84 percent will be completed within the current fiscal year. Special Initiatives in FY26 have been proposed includes new development initiatives Rs 15 billion, Rehabilitation of Flood-Damaged Infrastructure Rs 12 billion, Renewable Energy Projects Rs 25 billion, Karachi Urban Infrastructure Development Rs 12 billion, CSR-2024 Cost Impact Rs 15 billion, SDG-Aligned Development Rs 45 billion, Divisional HQ City Uplift Rs 7.5 billion. Shah said that Sindh started off with an ADP size reached Rs. 595 billion based on departmental demands, however, due to anticipated shortfall in federal transfers, Sindh Government rationalized the ADP down to Rs. 520 billion, marking a 20 percent reduction. Therefore, only 475 new schemes have been proposed in ADP FY26, linked to high-priority areas, including Flood rehabilitation, Renewable energy, Development in 5 less-developed districts, Uplift of divisional headquarters, Clean water and sanitation. A focused increase of 20 percent has been proposed for social and productive sectors, while allocations for other departments have remained constant. The budget allocations for major sectors for next financial year are Rs. 96.7 billion for Education sector, Rs. 45.4 billion for Health sector, Rs. 80.6 billion for Irrigation sector, Rs. 132.79 billion, for Agriculture, Rs. 155.2 billion for Energy sector, Rs. 11.25 billion for Livestock and Rs. 23.1 billion for Fisheries sectors. Under the development strategy, the Government of Sindh has decided to introduce a wide array of new initiatives across sectors that touch the lives of millions, from youth empowerment and healthcare access to climate-resilient infrastructure, sustainable energy, and community development. Chief Minister said that the Government of Sindh has formulated ADP 2025-26, building upon the development landscape of the last FY25, whereby responding to both emerging challenges and strategic development priorities. The FY25 ADP was marked by fiscal consolidation, with a strong emphasis on post-flood reconstruction, completion of ongoing schemes, and protecting core development functions amidst cost escalations and constrained federal transfers. No new schemes were introduced in that fiscal year (FY25), reflecting the government's commitment to fiscal discipline and timely project completion. Under the Flood Recovery to Resilience, the government has initiative from infrastructure rehabilitation in FY25 to resilience-building investments in FY26, including renewable energy and water conservation systems. While 1,494 schemes are expected to be completed in FY25, some 475 schemes have been introduces in for FY26, carefully selected new schemes, supported by higher counterpart funding and policy alignment. Government of Sindh is pursuing a planned development process such that developmental activities continue even during the economic slowdown. It is because of this planning that the current fiscal year has witnessed the highest development expenditure ever. Chief Minister Sindh informed that last year Sindh raised its concerns regarding the Federal Government's unwillingness in disbursing the committed amount of Rs. 52.912 billion in Federal PSDP against 19 schemes in year 2024. However, due to strong intervention by the PPP Chairman Bilawal Bhutto Zardari Sindh Government have so far Rs. 41 billion against the committed amount this year. The revised estimates for FY25 for provincial development expenditure stand at Rs. 846.9 billion. It includes Rs. 392.7 billion for Provincial ADP, Rs. 55 billion for district ADP and Rs. 296.2 billion for Foreign Projects Assistance (FPA). For development expenditure Sindh government released Rs. 666 billion, out of which it is expected that approximately Rs. 590 billion will be utilized by the end of CFY. This year will mark the highest development expenditure ever in the fiscal history of the province and we will be able to complete more than 1400 development schemes, which again is the highest number ever. Copyright Business Recorder, 2025
Business Recorder
20 hours ago
- Business Recorder
KP unveils Rs2.1trn surplus budget
PESHAWAR: The provincial government of Khyber Pakhtunkhwa Friday unveiled a Rs 2119 billion surplus budget for the fiscal year 2025-26. No new tax has been introduced while salaries of government employees and pension of the retired employees are increased by 10% and 7%, respectively. The budget was presented by the Provincial Minister for Finance Aftab Alam Afridi. Chief Minister Ali Amin Khan Gandapur was also present in the house. Current expenditure for settled districts has been estimated at Rs. 1255 billion besides Rs.160 billion for the merged districts of the erstwhile Fata. Giving the break up, the finance minister said that in head of the federal receipts, the province will receive an estimated amount of Rs.1147.761 billion: Rs.137.912 billion in head of 1% of divisible pool on war against terrorism, a Rs.57.115 billion in head of straight transfer in royalty and surcharge on oil and gas, Rs.58.151 billion in head of windfall levy on oil, Rs.34.580 billion in head of net hydel profit and another receipts of Rs71.410 billion in head of arrears in head of net profit. He said the provincial own resources posted 38% increase due to expansion of tax net without the imposition of any new tax. In head of tax receipts, the province will collect an estimated amount of Rs.83.5 billion, and Rs.45.5 billion in head of non-tax receipts. Similarly, in head of capital receipts, the province will generate an amount of Rs.0.25 billion, and Rs.10 billion in head of other ways and means. The minister told the house about receipts from federal government in head of the current budget grant for merged district and an additional demand for current budget of Rs.63 billion, Rs.39.600 billion in head of annual development program, Rs.50 billion for accelerated implementation Programme (AIP), Rs.42.740 billion in head of 3% share from other provinces and Rs.17 billion for the temporarily displaced persons (TDPs). He said that Rs3.293 billion would be received from PSDP, Rs1506.92 billion from the federal receipts, Rs129 billion from provincial owns receipts, Rs10.25 from other receipts, Rs291.340mn from merged districts receipts and Rs177.188 from federal projects assistance. He said that no new tax has been imposed in the budget; rather tax net base has been enhanced with Rs83.5 billion tax receipts and Rs45.5 billion non tax receipts. He said the government has estimated Rs1255 billion current expenditures for settled areas including Rs288.514 billion for provincial salaries, Rs288.609 billion for tehsil salaries. He said that the government has allocated Rs547 billion for developmental expenditure, including Rs 195 billion for PADP, Rs39 billion for district ADP, Rs39.6 billion for merged tribal districts' ADP. Copyright Business Recorder, 2025
