MUZAFFARABAD: The Azad Jammu and Kashmir (AJK) Legislative Assembly has enacted a Rs286 billion budget for the fiscal year 2026-27, following its presentation by Finance Minister Chaudhry Qasim Majeed.
The budget, passed during a session presided over by Speaker Chaudhry Latif Akbar with approximately 50% attendance (including five opposition members from PML-N and PTI), allocates Rs250 billion for recurring expenditures and Rs36 billion for development initiatives, including Rs1 billion in foreign assistance.
Presenting the budget, Majeed emphasized the government’s commitment to public welfare, transparency, and good governance amid significant resource constraints. He noted that while the Inland Revenue Department achieved notable revenue collection during the previous fiscal year, the overall target remained unmet due to external factors, including the State Bank of Pakistan’s reduced policy rate, which lowered banking profit margins to 9-10% and reduced electricity tariffs affecting revenue from education cess and property-related taxes.
The budget is structured to finance recurring expenditures through projected receipts of Rs250 billion, sourced from AJK’s share in federal taxes (Rs146 billion), income tax (Rs60 billion), other taxes (Rs15.2 billion), internal receipts (Rs25 billion), water-use charges (Rs2 billion), and capital receipts including loans (Rs1.8 billion). The entire Rs36 billion development allocation will be financed through a federal development grant.
Key development allocations include Rs14 billion for the Communication and Works Department, Rs4.1 billion for health, Rs3.3 billion each for education and energy/water resources, and Rs3.2 billion for Local Government and Rural Development. Additional allocations cover physical planning, governance, agriculture, research and development, and forestry, with 76% of the Annual Development Programme (Rs26.28 billion) targeting ongoing projects and Rs8.71 billion financing new schemes. The minister noted that 76 development projects would be completed by the end of the current fiscal year, with 170 projects targeted for completion during 2026-27.
Recurring expenditures prioritize education (Rs57.25 billion), pensions (Rs53.5 billion), wheat flour subsidies (Rs32.61 billion), health (Rs25 billion), and energy/water resources (Rs13.36 billion). The minister also announced the extension of federal salary and pension increases to AJK government employees and pensioners. Notably, the budget revised the previous year’s estimate from Rs310.2 billion to Rs262.165 billion.