Hammad javed / Asim Yousuf
Khyber Pakhtunkhwa Budget 2025–26: A Balanced Sheet, but an Unbalanced RealityFor the fiscal year 2025–2026,
the Khyber Pakhtunkhwa government has unveiled a budget of Rs 1.654 trillion, which it describes as a “balanced and people-friendly” financial plan. The government has prioritized funding for development, health, education, and government employee pay increases while avoiding new taxation. But a closer look at the numbers paints a different picture, particularly for the civil servants who operate the provincial machinery.This year’s budget includes a significant 25% increase in salaries for employees from Grade 1 to 16, and 20% for those in Grades 17 to 22. Similarly, pensions have been raised by 15%, and the minimum wage has been increased from Rs 36,000 to Rs 40,000. These are major steps compared to previous years and offer partial relief against inflation. Yet, the critical question remains: does this increase meet the actual needs of those serving the public? For many, the answer is still no.A total of Rs 1,248 billion is spent on non-development, of which Rs 138 billion is set aside for pensions and Rs 603 billion for salaries. This indicates that payroll and pension maintenance accounts for almost 45% of the total budget. This large percentage reduces the amount of money available for other crucial services like social protection, welfare programs, and job creation.On the development side, the government has allocated Rs 416 billion, including Rs 120 billion under the Provincial Development Program and Rs 100 billion for the merged districts (ex-FATA). If these funds are implemented transparently and effectively, they have the potential to impact public welfare positively. But implementation remains a challenge in a system with historically weak oversight.A key point the government proudly highlights is the absence of any new taxes, and a shift toward simplifying the existing tax system. While this is a welcome move, it doesn’t change the fact that ordinary citizens continue to be burdened by indirect taxes, high utility costs, and rising inflation issues that the budget largely fails to address directly.Another concern is the lack of institutional accountability. Despite the recent exposure of a Rs 40 billion corruption scandal in Upper Kohistan, the budget does not provide any concrete provisions for anti-corruption mechanisms, financial audits, or internal monitoring systems. Public trust cannot be restored unless the budget addresses such governance failures head-on.On a positive note, the budget does prioritize education and health, allocating Rs 292 billion for education and Rs 232 billion for health. These are substantial figures and reflect an effort to improve human development indicators. However, budgeted amounts alone are not enough; real impact depends on implementation, transparency, and consistent follow-up.A Good Budget, But Not a Complete OneSome initiatives in this budget are genuinely commendable, such as the notable pay raises, improved pension structure, emphasis on education and health, and increased funding for merged districts. However, the budget still has some fundamental gaps: no clear anti-corruption roadmap, lack of direct inflation relief for ordinary citizens, and no clear plan for administrative or governance reform.If KP truly wants to move toward meaningful development, budgetary balance is not enough. The budget must be built on transparency, public-centered priorities, and long-term planning. Only then will it be more than just a spreadsheet; it will become a tool of service and transformation for the people of Khyber Pakhtunkhwa.
