GILGIT: The Gilgit-Baltistan cabinet on Tuesday approved a Rs218 billion budget for the fiscal year 2026-27, raising the minimum wage from Rs40,000 to Rs44,000.
The budget includes Rs23 billion for development expenditure and Rs28 billion for non-development spending, while a federal government stabilisation package has also been incorporated into the financial plan.
The cabinet decided to reduce non-development allocations of government departments by up to 30 percent as part of measures to manage limited resources.
Chief Minister Amjad Hussain said the social sector remained the central focus of the budget despite financial constraints. He said efforts would be made to create employment opportunities for young people and women, while substantial allocations had been earmarked for health, education and agriculture.
The cabinet also approved an increase in the minimum wage for workers in government and private institutions from Rs40,000 to Rs44,000.
An additional Rs170 million was allocated for the purchase of medicines, while funding for the Health Endowment Fund and scholarships for talented students was also increased.
For the agriculture sector, Rs50 million has been proposed for water management initiatives. The budget also includes Rs1 billion for social protection, marking the first such allocation in Gilgit-Baltistan.
The government has proposed establishing a Rs4 billion endowment fund for the social sector. It also decided to deduct one percent from development projects for a Climate Fund, with the amount to be deposited into a consolidated account.
The cabinet approved the purchase of hybrid vehicles for government departments and decided to auction older vehicles with high fuel consumption.
To accelerate development, the government plans to reduce the development projects’ throw-forward, while ruling and opposition members will receive equal development funds.
Chief Minister Amjad Hussain said the government would ensure equitable distribution of resources and balanced development across the region.
He also directed officials to ensure transparency in the PC-I approval and tendering processes, stressing that development funds must be utilised specifically for their intended projects.
