Balochistan unveils Rs1.089 trillion surplus budget for 2026–27

QUETTA: The Balochistan government on Wednesday unveiled a Rs1.089 trillion surplus budget for the 2026–27 fiscal year, focusing on development spending, public services and social welfare initiatives.

The budget was presented in the provincial assembly by Finance Minister Mir Shoaib Nosherwani during a session chaired by Speaker Abdul Khaliq Achakzai.

The government announced the creation of 5,000 new jobs, including 3,000 in school education, 500 in health, 1,000 in newly created districts and 500 across various departments.

According to the budget document, total expenditures for the upcoming fiscal year are estimated at Rs1,089 billion, with Rs797 billion allocated for non-development spending and Rs206 billion for development programs. Of the development outlay, Rs106 billion has been set aside for new schemes and Rs100 billion for ongoing projects.

The finance minister said federal development grants of Rs45 billion and foreign project assistance of Rs40 billion have also been included, adding that the budget remains in surplus as provincial revenue is projected to improve, with a target of Rs170 billion.

Among major initiatives, the government announced ongoing dam construction projects across multiple districts, supported by federal funding. It also unveiled plans to establish the Bolan Insurance Company under a public-private partnership model to cover government assets, natural disasters and health-related risks.

Other allocations include Rs10 billion for the establishment of the Bank of Balochistan, Rs3 billion for the Balochistan Aviation Company, and Rs3 billion for divisional headquarters master planning.

To support agriculture and energy needs, Rs3.8 billion has been earmarked for the solarization of tube wells. The mineral sector has been allocated Rs490 million, while Rs85 million has been set aside for culture and archaeology. The energy sector will receive Rs5.3 billion in development funds and Rs4.6 billion in non-development expenditure.

Education, health and water supply were highlighted as key priorities. The school education sector has been allocated Rs12 billion for development and Rs115 billion for non-development expenses, while higher education will receive Rs2.3 billion and Rs28.7 billion respectively. The health sector has been allocated Rs6 billion for development and Rs90 billion for operational costs.

Nosherwani said the budget introduces no new taxes, describing it as tax-free. Public transport has been exempted from sales tax, while electric vehicles have been granted full tax relief. Sales tax on insurance of public assets has also been waived, and education services have been brought to zero percent tax.

Social welfare allocations include Rs1 billion for interest-free microfinance loans under the chief minister’s scheme, Rs1.3 billion for an endowment fund, Rs2.8 billion for the Balochistan Education Support Fund, Rs1.5 billion for the Balochistan Health Card program and Rs54 million for the Benazir Bhutto Scholarship Programme.

The government also announced a 7% increase in salaries and pensions for provincial employees. Nosherwani said Balochistan is expected to receive Rs771 billion in NFC transfers in the next fiscal year.