The Balochistan Provincial Assembly has formally approved its budget for the upcoming fiscal year 2025-26, with a total outlay exceeding Rs896.47 billion. The budget was passed after a session marked by the rejection of numerous cut motions put forward by opposition lawmakers.
The assembly session, chaired by Speaker Abdul Khaliq Achakzai, commenced 45 minutes behind schedule. Provincial Finance Minister Shoaib Nowsherwani presented a comprehensive set of 94 demands for grants to the house for approval.
Budget Allocations and Priorities
The approved budget allocates significant funds across both non-development and development sectors, reflecting the provincial government’s spending priorities.
- Non-Development Expenditures: A total of Rs660.83 billion has been sanctioned for non-development expenditures, covering ongoing operational costs and recurring expenses of various provincial departments. Fifty-three demands for grants were approved under this category.
- Development Expenditures: For the crucial development sector, the assembly approved Rs289.64 billion. This allocation is earmarked for various projects aimed at infrastructure development, social welfare, and economic uplift across the province. Forty-one demands for grants were presented and approved for developmental initiatives.
During the session, opposition members moved 11 motions seeking cuts in various demands for grants. However, all these motions were ultimately rejected by a majority vote after collective deliberation, paving the way for the budget’s smooth passage.
Funding Sources and Tax Impact
While the Balochistan budget primarily outlines expenditure plans, its revenue generation strategy significantly relies on federal transfers, particularly through the National Finance Commission (NFC) Award. Like other provincial budgets, Balochistan’s own-source revenue, derived from provincial sales tax on services, agricultural income tax, property tax, and various duties and fees, plays a role in financing its operations.
At the time of this report, the Balochistan budget for FY2025-26 does not appear to introduce any major new provincial taxes that would significantly impact the common citizen or businesses beyond existing provincial levies. Any broader tax impact on residents would largely stem from the federal government’s recently announced tax measures and the overall national economic policies. The provincial government’s focus remains on optimizing existing revenue streams and securing its share from the federal divisible pool to fund its ambitious development agenda and meet recurrent expenditures.
The budget aims to address the province’s needs in key sectors such as education, health, law and order, and infrastructure, with a continued emphasis on completing ongoing development projects to ensure their timely execution and benefit to the populace.
