Gilgit-Baltistan has presented a Rs218.845 billion budget for 2026–27, including Rs43.97 billion for development and Rs149.87 billion for non-development spending, three months after the financial year began.
The budget carries a deficit exceeding Rs52 billion. An interim allocation of Rs20.478 billion had covered the first quarter while the full-year plan was being prepared.
The government announced an increase in the minimum wage from Rs40,000 to Rs44,000 a month. Salaries account for Rs63.57 billion of planned expenditure, while the administration has ordered departments to reduce their non-development budgets by 30%.
Social spending includes Rs1 billion for social protection, Rs4 billion for a social-sector endowment fund and an additional Rs170 million for medicines. The budget also provides Rs50 million each for youth loans and local elections.
Development projects across the region’s 10 districts have been allocated Rs5.034 billion. The government also plans to direct 1% of development funds to a climate account and has announced a policy encouraging hybrid vehicles.
The spending plan combines infrastructure investment with recurrent expenses such as salaries and public services. It also places new emphasis on social protection and climate-related funding, despite the substantial gap between projected spending and available resources.
The deficit presents a challenge for implementing the announced measures. Timely funding releases will be important for development projects, while departments will have to manage the ordered cuts to their routine budgets without disrupting essential services.