GILGIT — The Gilgit-Baltistan Legislative Assembly has formally passed the Rs218 billion budget for fiscal year 2026-27, clearing a spending plan that carries a deficit of more than Rs52 billion and leaves the province looking to Islamabad for additional financial support to cover various pending liabilities.
The full-year budget, presented by Finance Minister Mohammad Ali Akhtar under the chairmanship of Speaker Imran Nadeem, had been in the pipeline for roughly three months. The provincial government had earlier rolled out a Rs20.47 billion interim budget in July to cover the first quarter of FY2026-27, with officials saying at the time that the complete annual budget would follow once the quarter closed.
A Budget Built on Welfare and Austerity
Officials described the plan as one centered on social welfare, financial discipline, and job creation, despite the province continuing to operate with limited resources. The budget allocates Rs23 billion for development spending and Rs28 billion for non-development expenses, with the overall Rs218 billion total lifted by a federal stabilization package layered on top of the province’s own revenue.
Chief Minister Amjad Hussain reiterated that the budget’s priorities remain the social sector, assistance for underprivileged groups, and expanding employment opportunities for youth and women, even within a constrained fiscal environment.
Deficit and Revenue Targets
For FY2026-27, the province has set a tax revenue target of Rs16.98 billion, while officials work to secure the funds needed from the federal government to close a budget deficit of Rs52.65 billion. Finance Minister Akhtar said the Annual Development Programme had been expanded from Rs22 billion to Rs23 billion, while the allocation under the federal Public Sector Development Programme had grown from Rs15 billion to nearly Rs21 billion, including Rs4 billion channeled through the Prime Minister’s package.
He added that the wheat subsidy fund, which had previously been trimmed to Rs15 billion, has now been restored to Rs22 billion, with the government projecting Rs3 billion in revenue from wheat sales.
Seeking a Rs153 Billion Federal Package
According to the finance minister, Gilgit-Baltistan has formally requested a special stabilization package of roughly Rs153.30 billion from the federal government to support economic and administrative stability across the province. He said the package is intended to fund targets across local government stability, law and order, education, health, tourism, flood-loss compensation, municipal services, food supply, e-governance, agriculture, climate resilience, institutional capacity-building, and the clearance of outstanding liabilities.
Wages, Salaries and Social Protection
The minimum wage for workers across both government and private institutions has been raised from Rs40,000 to Rs44,000. The budget sets aside Rs63.57 billion for salaries and Rs1.048 billion specifically for education-related expenditure.
In a first for the province, Rs1 billion has been earmarked for social protection programs, alongside a proposal to establish a Rs4 billion endowment fund dedicated to the social sector.
Climate Financing and Green Vehicles
Akhtar noted that while climate funds had long been nominally set aside within development projects, no actual deductions had ever been made in practice. Under the new budget, one percent of development funds will, for the first time, be diverted into a consolidated climate account. The government also plans to procure hybrid vehicles for departmental use and auction off older, fuel-inefficient vehicles currently in service. Non-development budgets across all departments have been cut by 30 percent as part of the broader austerity drive.
Sector-Wise Allocations
Substantial funding has also been directed toward health, education, and agriculture. Highlights include an additional Rs170 million for medicine procurement and the creation of a dedicated health endowment fund. Rs50 million has been allocated for water management to support agriculture, alongside another Rs50 million for agricultural sector reform initiatives.
Further allocations include Rs50 million in loans for youth, Rs50 million for local bodies elections, and Rs50 million for the renovation of local bodies offices. The water and power department has been allocated Rs78 million, while the tourism department receives Rs18 million. For development projects spread across the province’s ten districts, Rs5.034 billion has been earmarked.
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