Balochistan Presents Rs1.089 Trillion Tax-Free Budget for FY 2026-27
QUETTA: The Balochistan government has presented a tax-free provincial budget worth over Rs1.089 trillion for the fiscal year 2026-27, with significant allocations for development and non-development expenditures and a projected surplus of Rs45.56 billion.
According to budget documents presented in the provincial assembly session, total expenditures for the upcoming fiscal year are estimated at Rs1,089.35 billion, including Rs797.80 billion for non-development spending and Rs291.55 billion for development projects.
Under the Annual Development Programme (ADP), Rs206.60 billion has been allocated, while Rs40.38 billion is reserved for foreign-assisted projects and Rs44.55 billion for federally funded schemes.
The provincial government expects total revenue receipts of Rs1,019.03 billion, including Rs834.44 billion from the federal government. Balochistan’s share from the NFC divisible pool is estimated at over Rs771.39 billion. Provincial own-source revenue is projected at Rs170.09 billion, including tax revenue of Rs72.41 billion, non-tax revenue of Rs63.68 billion, and Rs34 billion from lease extension bonuses.
Sector-wise allocations show education as the top priority with Rs157.28 billion, followed by health with Rs73.99 billion, law and order with Rs107.99 billion, economic affairs with Rs81.83 billion, and housing and community services with Rs55.05 billion.
The budget also reflects a projected capital receipts estimate of Rs85.28 billion and an expected surplus of Rs45.56 billion at the end of the fiscal year.
The government has announced several relief and policy measures, including tax exemptions on public transport, zero sales tax on educational services, and full tax exemptions on new electric vehicles. The 1965 hotel tax law has been abolished, while stamp duty and capital value tax on property transfers have been reduced from 2% to 1% to promote real estate activity.
No new taxes have been introduced in the budget.
Key social initiatives include Rs3.1 billion for a Public Endowment Fund, Rs2.82 billion for the Balochistan Education Support Fund, Rs1.5 billion for the Balochistan Health Card programme, Rs1.7 billion for digital skills development under Digibizz, and Rs2 billion for low-cost housing projects. Additionally, Rs200 million has been allocated for the procurement of 500 electric wheelchairs.
The government also announced plans to expand transport services, including Green and Pink Bus feeder routes, People’s Train Service, and electric buses.
Other initiatives include interest-free microfinance loans worth Rs1 billion, establishment of incubation centers and mini sports complexes, clean drinking water projects across union councils, and a grievance redressal system for public complaints.
As part of its employment strategy, the provincial government plans to create 5,000 new jobs across various departments to support youth employment opportunities across the province.
