KP govt increases salaries on govt employees in budget 2025-26

PESHAWAR: KP government has declared a ten percent and a seven percent hike in salaries and pensions, respectively, of its workers in the Rs 2,119 billion surplus budget for the fiscal year 2025-26 unveiled on Friday.

Khyber Pakhtunkhwa Finance Minister Aftab Alam unveiled the budget with ‘no new tax‘ and stated that the estimated annual outlay for the upcoming fiscal year 2025-26 would be Rs 1962 billion with a surplus of Rs 157 billion.

Announcing the break-up, the finance minister added that provincial government is hoping to receive Rs 292.340 billion from the federal government for the merged tribal districts including Rs 80 billion current budget grant, Rs 39.600 annual development program, Rs 50 billion under AIP, Rs 42.740 billion as their share from other provinces and Rs 17 billion for TDPs.

Aftab Alam informed that Rs 3.293 billion would come from PSDP, Rs 1506.92 billion from federal receipts, Rs 129 billion from provincial own receipts, Rs 10.250 other receipts, Rs 291.340 billion from merged districts receipts, and Rs 177.188 billion from federal projects assistance.

The minister stated that Rs137.912 would be received under one percent of the divisible pool on war on terror, Rs.57.115 billion as direct transfer under the head of gas and oil royalty, Rs58.151 billion as windfall levy on oil, Rs34.580 as net hydel profit current year, and Rs71.410 as net hydel profit arrears.