An Analysis of Balochistan Budget 2025-26

Abstract

This study examines the Balochistan Budget 2025–26 to evaluate its fiscal structure, revenue patterns, and development priorities within the broader national context. The province remains structurally dependent on federal transfers (78% of total receipts), while provincial revenue generation remains limited and inconsistent, despite a reported surplus of 51.83 billion PKR.  The analysis highlights the persistent gaps between budgeted and actual federal transfers, resulting in recurring reductions in development spending. Severe governance deficits (including corruption, weak financial oversight, ghost employees, and misallocated development funds) further undermine fiscal stability and service delivery (particularly in education, healthcare, and local infrastructure). These issues are further exacerbated by the structural constraints such as harsh geography, sparse population, inadequate tax administration, and security challenges. The study concludes that sustainable progress requires comprehensive reforms, including improved governance mechanisms, strengthened tax administration, targeted skill development, sectoral diversification, and enhanced accountability to ensure equitable and effective utilization of public resources.