Balochistan Unveils Rs1.089 Trillion Budget for FY 2026-27
Balochistan Budget: Rs1.089 Trillion for FY 2026-27

The Balochistan government on Wednesday unveiled a Rs1.089 trillion budget for the fiscal year 2026-27, allocating Rs206 billion for development spending, announcing the creation of 5,000 government jobs, and projecting Rs771 billion in transfers under the National Finance Commission (NFC) Award. The provincial cabinet, chaired by Chief Minister Mir Sarfraz Bugti, unanimously approved the budget before Provincial Finance Minister Mir Shoaib Nosherwani presented it in the Balochistan Assembly.

The total budget outlay stands at Rs1.089 trillion, including Rs797 billion for non-development expenditure and Rs206 billion for the Provincial Public Sector Development Programme (PSDP). Of the development allocation, Rs106 billion has been earmarked for new schemes, while Rs100 billion has been reserved for the completion of ongoing projects.

Federal and Foreign Assistance

The province will also receive Rs45 billion under federally funded development projects and Rs40 billion in foreign project assistance to support investment in infrastructure, education, healthcare, water supply, communications, agriculture, and energy. The government has set a provincial revenue target of Rs170 billion for the upcoming fiscal year, citing reforms in taxation, improved fiscal discipline, and efficient resource utilisation to achieve the goal.

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Chief Minister's Remarks

Chief Minister Bugti described the budget as "balanced, realistic, and people-friendly", stating that the government had prioritised public welfare, sustainable development, employment generation, and improved basic services despite limited resources. He said health, education, clean drinking water, infrastructure, and employment remained the government's principal development priorities.

New Government Jobs

Presenting the budget, Finance Minister Nosherwani announced the creation of 5,000 new government jobs, including 3,000 posts in school and college education, 500 in the health department, 1,000 in newly created districts, and another 500 across various provincial departments.

NFC Transfers and Fiscal Reforms

He also announced that Balochistan would receive Rs771 billion under the NFC Award during the new fiscal year, attributing the increase to improved revenue collection by the Federal Board of Revenue. The minister said the NFC transfers would strengthen provincial finances and support development initiatives across the province. Highlighting fiscal reforms, Nosherwani said the government would implement the Treasury Single Account (TSA) system to consolidate funds of government and autonomous institutions, a move aimed at improving transparency, financial management, and accountability.

He said the province had collected a record Rs130 billion in revenue during the previous fiscal year and announced further initiatives to enhance revenue generation, including Legal Assessment Gap and Revenue Assessment Gap surveys to identify untapped tax and non-tax revenue sources.

Revenue Contributions

According to the finance minister, the Balochistan Revenue Authority contributed Rs59.8 billion to provincial revenue during the last fiscal year, followed by the Energy Department with Rs36.9 billion, the Minerals and Mineral Resources Department with Rs21.1 billion, the Board of Revenue with Rs8.4 billion, and the Excise and Taxation Department with Rs4 billion.

Health Sector Allocations

The government allocated Rs96 billion for the health sector, including Rs90 billion in non-development expenditure and Rs6 billion under the development budget. Nosherwani said allocations also included Rs7.7 billion for the Balochistan Health Card, PPHI programmes, medicines, trauma centres, Sheikh Zayed bin Nahyan Hospital, and nutrition initiatives. The budget increases the Balochistan Health Card allocation from Rs4.5 billion to Rs6 billion, raises the PPHI grant from Rs7.6 billion to Rs8.8 billion, and increases the medicines budget by 23 per cent from Rs6.9 billion to Rs8.5 billion.

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New Initiatives

The finance minister also announced 11 new initiatives, including a public-private insurance system through Bolan Insurance Company Limited, Rs3.8 billion for the solarisation of tube wells, Rs10 billion for establishing the Bank of Balochistan, and Rs3 billion for the proposed Balochistan Aviation Company. Other measures include Rs490 million for promoting mineral resources and investment opportunities, Rs85 million for heritage and archaeology projects, the establishment of e-commerce centres, and a third-party validation mechanism for development schemes.