GB unveils Rs218.8bn budget after long wait

GILGIT: The Gilgit-Baltistan government on Tue­s­day presented a three-month delayed budget of Rs218.845 billion for fiscal year 2026-27, with a deficit of over Rs52bn, seeking additional funds from the federal government to meet various liabilities.

It may be mentioned here that in July, the GB government had presen­ted a Rs20.478bn interim budget for the first quarter of FY27 and announced that the full-year budget would be presented after three months.

Senior Minister Moham­mad Ali Akhtar, who also holds the finance portfolio, presented the budget in the GB Assembly on Tuesday, presided over by Speaker Imran Nadeem.

He told the house that the elected government had assumed office at the end of June 2026. “Since only a very limited amount of time was available bet­w­een the end of the financial year and the beginning of the new financial year, the government had to ensure continuity of governmental affairs and the timely provision of essential expenditures.”

Therefore, he said, a three-month interim budget for the initial three months of FY27 was presented on the basis of the previous financial year. “At that time, our government clearly preferred to take the necessary time rather than present a full-year budget, so that the annual budget would not merely be a collection of figures, but could truly reflect the genuine needs, priorities and aspirations of the people,” he added.

Mr Akhtar said the budget was, placing special emphasis on education, health, basic infrastructure and the welfare of the underprivileged segment of society. He said the total budget was estimated at approximately Rs218.845bn, with Rs43.97bn allocated for development and Rs149.87bn for non-development expenditure. He said the volume of the GB budget reached Rs218bn when the federal government’s stabilisation package was included.

He said tax revenues were targeted at Rs16.98bn, while efforts were under way to secure the required funds from the federal government to meet the budget deficit of Rs52.65bn.

He said the size of ADP had been increased from Rs22bn to Rs23bn, while the amount allocated under the federal PSDP had been increased from Rs15bn to Rs20.973bn, including Rs4bn under PM’s package.

The minister said the wheat subsidy fund that had been reduced to Rs15bn was raised to Rs22bn. The estimated revenue from wheat sale was Rs3bn, he added.

He said GB had requested a special stabilisation package of around Rs153.30bn from the federal government for economic and administrative stability.

“Under this package, targets have been set for the stability of local governments, law and order, education, health, tourism, compensation for flood losses, municipal services, food supply, e-governance, tourism, agriculture, climate change, institutional capacity building, and clearing various liabilities,” he said.

The minister said the minimum wage for employees in all government and non-government institutions had been raised from Rs40,000 to Rs44,000. He said Rs63.57bn had been allocated for salaries, while Rs1.048bn had been set aside for education.

“For the first time in history, Rs1bn has been allocated for social protection, and a proposal has been made to establish a Rs4bn endowment fund for the social sector,” he added.

Mr Akhtar said climate funds were previously earmarked within development projects, but in practice, no actual deductions were being made for this purpose. For the first time, one per cent of development funds would be diverted to a consolidated account, he added.

In light of climate change concerns, the GB government had decided to procure hybrid vehicles for government departments and auction off older vehicles that con­sumed excessive fuel, he said. The minister also ann­ounced that the non-development budgets of all departments were being reduced by 30pc.

He said substantial funds had been allocated for improving the health, education and agriculture sectors. These included an increase of Rs170m for the procurement of medicines, and the establishment of a health endowment fund. He said Rs50m had been allocated for water management to promote the agriculture sector and Rs50m for agriculture sector reform initiatives.

“Rs50m for loans for youth, Rs50m for local bodies elections and Rs50m for renovation of local bodies offices have been allocated. Rs78m has been allocated for water and power department and Rs18m for tourism department,” he said. For development projects in 10 districts, Rs5.034bn has been allocated.

Earlier, a GB cabinet meeting approved the budget.

Published in Dawn, September 16th, 2026