GILGIT — The Gilgit-Baltistan Cabinet has unanimously approved a budget of Rs 218 billion for the fiscal year 2026-27, with officials describing it as a spending plan built around social welfare, austerity, and employment generation despite constrained resources, the Information Department GB said in as social media post.
According to the Information Department GB, the budget was cleared during a provincial cabinet meeting where the Provincial Finance Secretary and the Additional Chief Secretary (Development) briefed members on its key features. The plan includes a development outlay of Rs 23 billion and a non-development outlay of Rs 28 billion, with the overall Rs 218 billion figure reflecting the inclusion of a federal government stabilization package.
Chief Minister Amjad Hussain, addressing the meeting, said the budget prioritizes the social sector, support for the deserving, and job creation for youth and women even as the province works within tight fiscal limits.
Austerity Measures
In a first for Gilgit-Baltistan, non-development budgets across all departments are being cut by 30 percent to rein in recurring expenditure. Officials said additional austerity steps are planned in response to rising oil prices and broader economic pressures facing the country.
Wage Increase and Income Support
The minimum wage for employees across government and non-government institutions has been raised from Rs 40,000 to Rs 44,000. The government has also proposed measures to narrow salary disparities among public employees and improve living standards for middle- and lower-income groups.
Health, Education and Agriculture
According to the Chief Minister, substantial funding has been directed toward health, education, and agriculture. Highlights include:
- An increase of Rs 170 million for medicine procurement
- Establishment of a health endowment fund
- A significant rise in scholarships for meritorious students
- A proposed Rs 50 million allocation for water management to support agriculture
Social Protection
For the first time in the region’s history, Rs 1 billion has been earmarked for social protection, alongside a proposal to set up a Rs 4 billion endowment fund for the social sector.
Climate Measures
The budget also introduces a new climate financing mechanism: while climate funds were previously nominally set aside within development projects, no actual deductions had been made in practice. Under the new plan, one percent of development project funds will now be deducted and deposited into a consolidated climate account. Separately, the government plans to procure hybrid vehicles for departmental use and auction off older, high fuel-consumption vehicles.
Tackling Throw-Forward Liabilities
The Chief Minister said Gilgit-Baltistan’s development process has long been hampered by a large volume of “throw-forward” liabilities — pending costs carried over from ongoing projects. The budget includes measures to reduce this backlog in order to revive the development cycle and speed up project completion.
Equitable Fund Distribution
In another first, equal development funds have been allocated to both treasury and opposition members, a move officials say is intended to ensure balanced development across all constituencies.
The Chief Minister directed the Additional Chief Secretary (Development) and other relevant secretaries to maintain transparency and efficiency at every stage — PC-1 preparation, tendering, and project execution — to ensure funds are used strictly for their intended development purposes.
