The Government of Balochistan unveiled its budget for the fiscal year 2025-26 on June 17, 2025. With a substantial financial outlay of Rs1.03 trillion, the budget highlights a commitment to public welfare, with a strategic focus on health, education, and sustainable development.

The allocation to non-development amounts to Rs639.88 billion, whereas Rs336.58bn has been allocated to the development sector, including the foreign project assistance of Rs30.15bn and the federal funded project of Rs57.98bn. The estimated total expenditure for the fiscal year is projected at Rs976.45bn, indicating a budgetary surplus of Rs51.83bn.

The total federal receipts, including the National Finance Commission and development and non-development grants, are Rs801.67bn, while total provincial receipts, consisting of tax and non-tax, are Rs124.9bn, and total Foreign Project Assistance is Rs37.8bn. Revenue assignments received from the federal government are derived primarily from two key sources: federal transfers and federal development grants, including allocations under the Federal Public Sector Development Programme (PSDP).

The receipts from the federal divisible pool and straight transfers have shown notable increases from the previous budget. The federal divisible pool has risen from Rs647.01bn in 2024-25 to Rs713.62bn in the current budget, reflecting a growth of 10.30 per cent.

Similarly, straight transfers have increased from Rs20.55bn to Rs29.54bn, representing a significant growth of 43.74pc.

In contrast, non-development grants have experienced a decline, decreasing from Rs20bn to Rs18bn. Additionally, development grants outside the PSDP have also reduced, falling from Rs59.09bn to Rs40.50bn.

Regarding Balochistan`s provincial ownsource revenue, it consists of both tax and non-tax components. In FY26, the total tax revenue is projected to be Rs55.84bn, with the Balochistan sales tax on services as the largest contributor at Rs40.46bn, followed by the infrastructure development cess at Rs8bnand provincial excise at Rs1.7bn. Furthermore, non-tax revenue is estimated at Rs69.04bn, primarily driven by the Sui Gas Lease Extension Bonus, which totals Rs24.60bn, and mineral royalties amounting to Rs12.98bn.

This budget represents a financial plan aimed at promoting economic growth and development, uniquely prioritising environmental protection through the introduction of the Balochistan Climate Change Fund, which has a seed money of Rs500 million. To stimulate growth, investments in the infrastructure and production sectors have been planned, primarily to alleviate poverty.

Moreover, Balochistan`s FY26 budget carries a strong focus on social sector development, particularly in education and health. A considerable Rs145bn has been allocated to the education sector, marking a 25pc increase over last year`s actual expenditures, alongside dedicated funds for scholarships with an allocation of Rs4bn to the Balochistan Education Endowment Fund for awarding scholarships to the students of Balochistan both nationally and internationally.Additionally, Rs1bn has been earmarked for the Balochistan Education Foundation for promoting primary education. For promoting higher education, the universities` grant-in-aid has been enhanced from Rs5bn to Rs8bn.

In the health sector, Rs87bn has been allocated, reflecting a 6pc increase. This includes Rs4.5bn for the Balochistan Health Card Programme an insurance initiative providing free and universal healthcare services to the residents of Balochistan, particularly those who are underprivileged and vulnerable. Additionally, Rs500m has been designated for the Awami Endowment Fund under the Social Welfare Programme for the treatment of patients with catastrophic diseases, raising the total size of the fund to Rs8bn.

Furthermore, support for the People`s Primary Healthcare Initiative, a provincial government programme aimed at enhancing primary healthcare at the Basic Health Units, has significantly increased, with its grant-inaid rising from Rs4.06bn to Rs7.76bn. The medicine budget has also seen a 25pc rise across the province. Furthermore, substantialfunds have been allocated to agriculture and livestock for livelihood and food security.

It is worth mentioning that Rs48bn from the current budget has been allocated for strategic initiatives, such as clean drinking water at 1,000 sites, improved municipal services with Rs3bn, and the establishment of 1,200 new primary schools. Additionally, Rs1bn has been earmarked for the chief minister`s elective-bikes initiative, under which electric bikes will be provided to the students at subsidised rates, aiming to ease transportation challenges and to promote eco-friendly mobility, ultimately aiming at youth empowerment and environmental sustainability.

Beyond the non-development budget, the development side of things the PSDP features 6,183 projects with a total cost of Rs249.5bn, has been projected to stimulate inclusive growth and sustainable development. For completion of ongoing projects, Rs113.5bn have been allocated, accounting for 46pc of the total development outlay. In addition to that, Rs135.9 is allocated for a total of 2,550 new projects.

Further analysis reveals that the allocation of Rs279.6bn (Provincial PSDP of Rs249.5bn and Rs30.149bn worth of foreign project assistance) has been distributed across three key sectors: the infrastructure sector, receiving the largest share of Rs140.5bn (50pc); the social sector, with an allocation of Rs107.5bn (38pc); and the production sector, receiving Rs31.1bn (11pc). This reflects a strategic focus on infrastructure development while also ensuring substantial investment in social services and modest support for the productive sector.

To conclude, the timely release and effective execution of projects are necessary for producing a positive impact on the overall growth and development of Balochistan. The complete utilisation of development funds in the previous financial year underscores the commitment of the provincial government.m The wn~ter is a public policy analyst based in Quetta. (Views expressed in this adicle are the writer`s own and do not reflect any organisation).