QUETTA – Balochistan government announced 7 percent increase in salaries and pensions in Rs1.089 trillion budget for fiscal year 2026-27. Unveiling surplus budget despite financial constraints, the province also pledged to create 5,000 new jobs, boost spending on health and education, and refrain from imposing any new taxes, calling this package a relief-focused and development-oriented plan.
Presenting Finance Bill for FY2026-27, Provincial Finance Minister Shoaib Nosherwani said the province achieved the highest-ever utilization of development funds in its history, spending 115 percent of allocated development budget during the current fiscal year. He described the new budget as a surplus budget reflecting fiscal discipline and improved financial management.
The total budget outlay for 2026-27 has been set at Rs1,089.26 billion, while total receipts are estimated at Rs1,134.92 billion, resulting in a projected surplus of Rs45.66 billion. The government expects to receive Rs800.13 billion in federal transfers, while provincial revenues are projected at Rs170.09 billion. Foreign-funded projects account for Rs65.34 billion, while project financing and capital receipts are estimated at Rs68.75 billion.
A major portion of the budget has been earmarked for social sectors, with Rs96 billion allocated to health, including Rs6 billion for development schemes and Rs90 billion for non-development expenditures. The government has also increased funding for the Balochistan Health Card Programme by Rs1.5 billion to expand healthcare coverage across the province.
Education received one of the largest allocations in the budget, with Rs127 billion proposed for school education and Rs31 billion for higher and technical education. In addition, Rs2.82 billion has been allocated under the Balochistan Education Support Fund to assist deserving students, while Rs54 million has been earmarked for the Shaheed Benazir Bhutto Scholarship programme. The government also announced a zero sales tax rate on educational services.
The agriculture sector is set to receive Rs23.6 billion under the proposed budget, while law and order expenditures include Rs243 million for development projects and Rs1.2 billion for non-development spending.
The provincial government also axed the Capital Value Tax and stamp duty on property transfers from 2 percent to 1 percent. The budget also includes interest-free loan schemes for women to promote economic empowerment and entrepreneurship.
The government announced creation of 5,000 new posts in various provincial departments. Despite ongoing fiscal challenges, the provincial administration decided to increase salaries and pensions by 7 percent, matching the relief measures announced by the federal government.
Provincial Public Sector Development Programme (PSDP) has been set at Rs206.61 billion, while Rs44.56 billion has been allocated for federal development projects and Rs40.38 billion for foreign-funded schemes. The finance minister said the budget maintains a positive balance between revenues and expenditures and does not impose any new taxes, describing it as a people-friendly and development-oriented financial plan for the coming fiscal year.
