KP finalises Finance Bill, proposes over 1,000 development schemes for FY27

PESHAWAR: The Khyber Pakhtunkhwa government has finalised the Finance Bill and Supplementary Budget for FY2026-27, proposing tax adjustments, relief measures and more than 1,000 development schemes in the province’s Annual Development Programme.

According to official sources, the bill proposes changes to the provincial taxation framework, including reductions in tax rates for some sectors and increases in certain existing taxes.

However, no new tax has been proposed under the Finance Bill.

Sources said the bill also contains proposals to provide full relief on various taxes as part of the government’s effort to ease the burden on taxpayers and promote economic activity.

The provincial government has also prepared a Supplementary Budget for presentation in the assembly in line with constitutional and legal requirements. The supplementary budget is aimed at securing legislative approval for expenditures incurred or currently being incurred during FY2025-26.

Adviser to the Chief Minister on Finance Muzammil Aslam is expected to table both the Finance Bill and the Supplementary Budget in the provincial assembly during the budget session.

Separately, the provincial government has proposed more than 1,000 development projects under the Annual Development Programme for FY2026-27, which officials described as the highest number of development schemes ever included in a provincial budget.

Sources said the provincial budget has largely been finalised, though consultations and revisions are still underway before its formal presentation.

According to officials familiar with the process, the largest share of the proposed development schemes falls under the Elementary and Secondary Education, Communication and Works, and Health sectors. Together, these sectors account for more than 500 proposed projects.

The Planning and Development Department has prepared the final draft of the development programme, while consultations are continuing among the Planning and Development Department, Finance Department and Chief Minister’s Secretariat to finalise the ADP.

Sources said the provincial budget will be given final shape after the presentation of the federal budget. Development funds will then be allocated, and the Annual Development Programme will be finalised accordingly.

The proposed development portfolio reflects the provincial government’s focus on education, healthcare and infrastructure in the next fiscal year.