PESHAWAR: The Khyber Pakhtunkhwa (KP) Finance Department has prepared two separate budget proposals for the fiscal year 2026-27, including a full-year budget and a three-month interim budget, as uncertainty continues over the province’s final financial plan.
According to official sources, the provincial finance authorities have completed preparations for both options and are awaiting directions from Chief Minister Sohail Afridi regarding which budget will be presented.
Full-Year Budget Exceeds Rs. 2.2 Trillion
Officials said the complete budget for FY2026-27 has been drafted with a total outlay of more than Rs. 2.2 trillion. The proposed budget includes over Rs. 500 billion for the province’s Annual Development Programme (ADP), aimed at funding development projects across KP.
Three-Month Interim Budget Also Ready
The Finance Department has also prepared a contingency three-month budget worth more than Rs. 300 billion. If approved, this interim budget would primarily cover ongoing government operations and non-development expenditures.
Sources said that under a three-month budget arrangement, only current and recurring expenses would be authorized, while funding for new development projects would remain suspended during the period.
No Directive Yet from Chief Minister
Government officials confirmed that the Finance Department has not yet received formal instructions from Chief Minister Sohail Afridi regarding the presentation of a three-month budget.
PTI Leadership Signals Interim Budget Plan
The development comes a day after Salman Akram Raja stated that a final provincial budget would not be presented until a meeting is held with Imran Khan. He indicated that the KP government may initially seek approval for a three-month budget document instead of a full-year fiscal plan.
The situation has raised questions about the timing of the province’s budget approval process as the new fiscal year approaches.
