GB presents Rs218.8bn budget with Rs52.6bn deficit

GILGIT: The Gilgit-Baltistan government has presented a Rs218.845 billion budget for the fiscal year 2026-27 after a three-month delay, with a projected deficit of Rs52.65 billion.

Senior Minister and Finance Minister Mohammad Ali Akhtar presented the budget in the Gilgit-Baltistan Assembly on Tuesday. The session was chaired by Speaker Imran Nadeem.

The government had earlier approved a Rs20.478 billion interim budget for the first quarter of the financial year. Officials said the temporary arrangement was adopted to ensure continuity of essential government services while the newly formed administration prepared the full-year budget.

According to the finance minister, the annual budget focuses on education, healthcare, infrastructure and social welfare. Development expenditure has been set at Rs43.97 billion, while Rs149.87 billion has been allocated for non-development spending.

The government has set a tax revenue target of Rs16.98 billion and plans to seek additional federal assistance to cover the budget deficit. The Annual Development Programme has been increased from Rs22 billion to Rs23 billion, while the allocation under the federal Public Sector Development Programme has risen to Rs20.973 billion, including Rs4 billion under the prime minister’s package.

The wheat subsidy has also been increased from Rs15 billion to Rs22 billion. Revenue from wheat sales is estimated at Rs3 billion.

The GB government has requested a special stabilisation package worth around Rs153.3 billion from the federal government. The proposed package is intended to support local governments, law and order, education, health, tourism, agriculture, food supplies, municipal services and e-governance, besides helping clear outstanding liabilities and meet flood-related expenses.

The minimum wage for employees in government and private institutions has been increased from Rs40,000 to Rs44,000. Around Rs63.57 billion has been earmarked for salaries.

The government has also allocated Rs1 billion for social protection and proposed establishing a Rs4 billion endowment fund for the social sector.

In an effort to address climate-related challenges, the government plans to set aside one per cent of development funds in a consolidated climate account. It will also purchase hybrid vehicles for government departments and auction older fuel-intensive vehicles.

The non-development budgets of government departments are being reduced by 30 per cent as part of the administration’s austerity measures.

Additional allocations have been made for healthcare, agriculture and water management. The medicines budget has been increased by Rs170 million, while funds have also been allocated for a health endowment fund.

The government has earmarked Rs50 million for water management and another Rs50 million for agriculture reforms. A further Rs50 million each has been allocated for youth loans, local government elections and renovation of local government offices.

For development projects across 10 districts, Rs5.034 billion has been allocated. The water and power department will receive Rs78 million, while Rs18 million has been set aside for tourism-related initiatives.

The budget was approved by the GB cabinet before being presented in the assembly.