Punjab Presents Rs5.903 Trillion Budget 2026-27

The Government of Punjab has unveiled a Rs5.903 trillion provincial budget for FY2026-27, proposing a 7% increase in salaries for government employees and a 3.5% enhancement in pensions while maintaining significant allocations for education, healthcare, infrastructure, public safety, and development initiatives.

The budget was presented before the Punjab Assembly by Mian Mujtaba Shuja-ur-Rehman following its approval by the provincial cabinet chaired by Maryam Nawaz Sharif. The proposed outlay represents an increase of approximately 10.7% compared to the preceding fiscal year's budget.

Addressing the assembly, the finance minister stated that the provincial government had implemented expenditure control measures in accordance with federal austerity directives while ensuring that development projects and public welfare programmes remained adequately funded.

Revenue and Fiscal Outlook

According to budget estimates, Punjab expects to receive approximately Rs4.39 trillion under the National Finance Commission (NFC) Award during FY2026-27, reflecting growth of 8.1% over the previous fiscal year.

The province has projected own-source revenues of Rs1.21 trillion and anticipates recording a budget surplus of Rs91 billion.

The finance minister further stated that Punjab had contributed Rs546 billion towards national strategic requirements while continuing to finance development programmes and public service initiatives throughout the province.

Revenue collection targets have been substantially enhanced for provincial agencies. The Punjab Revenue Authority has been assigned a target of Rs528.5 billion, representing an increase of 55%, while the Excise, Taxation and Narcotics Control Department has been tasked with collecting Rs124 billion, reflecting growth of 77%.

Development Programme

The government has allocated Rs752 billion for the Annual Development Programme (ADP) for FY2026-27.

According to the finance minister, fiscal pressures have not resulted in any reduction in Punjab’s development agenda. Chief Minister Maryam Nawaz Sharif also reiterated the government's commitment to development and welfare projects despite reduced fiscal space and increased obligations towards the federation.

Education Sector

Education received the largest sectoral allocation of Rs750.1 billion, accounting for approximately 15% of the total provincial budget.

Key initiatives include funding for the Chief Minister Punjab Laptop Programme, under which 110,000 laptops are planned to be distributed, the Honhaar Scholarship Programme, and the School Meal Programme, which has been allocated Rs15 billion.

The government has also earmarked Rs40 billion for the Maryam Nawaz Sharif Centre of Academic Leadership, the Nawaz Sharif Centre of Excellence, and STEAM laboratory projects.

Additionally, Rs6.9 billion has been allocated for establishing information technology laboratories in colleges, while Rs1.9 billion has been designated for autism schools across all provincial divisions.

Health Sector

The health sector has received an allocation of Rs500.6 billion.

Major healthcare projects include Rs20 billion for the Nawaz Sharif Institute of Cancer Treatment and Research and Rs169 billion for the Nawaz Sharif Medical District.

Other significant allocations comprise Rs15.21 billion for a cancer hospital in Dera Ghazi Khan, Rs23.37 billion for a children's hospital in Bahawalpur, Rs1.75 billion for Neuro Cath Labs under the Stroke Initiative, and Rs5 billion for emergency services.

Funding has also been provided for the establishment and expansion of Maryam Nawaz Health Clinics across Punjab.

Salaries, Pensions and Local Governments

The budget proposes a 7% increase in salaries for provincial government employees, bringing total salary expenditure to approximately Rs639 billion.

Pensions for retired employees are proposed to increase by 3.5%, with total pension-related spending projected at nearly Rs500 billion.

The government has also allocated Rs900 billion under the Punjab Finance Commission framework and Rs409.8 billion for local government-related expenditures.

Public Safety and Law Enforcement

An allocation of Rs252.1 billion has been proposed for public safety and law and order.

The budget includes Rs2.2 billion for the construction of police stations and police posts in riverine regions and Rs14 billion for establishing crime scene investigation units in 28 districts.

Separate allocations of Rs12.88 billion for police operations and Rs3 billion for the judiciary have also been proposed.

Infrastructure, Transport and Agriculture

Infrastructure development projects have been allocated Rs272.8 billion, while the transport sector is set to receive Rs78.5 billion.

The provincial government plans to spend Rs26.6 billion on mass transit systems in Gujranwala and Faisalabad, Rs16.8 billion on an electric bus programme, and Rs10 billion on regional railway development projects.

The agriculture sector has been allocated Rs91.9 billion, reflecting the government's continued focus on agricultural productivity and rural development.

In addition, Rs221.9 billion has been earmarked for investment promotion initiatives intended to stimulate economic activity, attract investment, and support employment generation.

Cabinet Approval and Policy Direction

Prior to the budget presentation, Chief Minister Maryam Nawaz Sharif chaired the 35th meeting of the provincial cabinet, during which the budget received formal approval.

The chief minister stated that the budget had been formulated without introducing new taxes and was designed to provide public relief while sustaining economic growth and development objectives.

She also directed the Punjab Revenue Authority to strengthen revenue collection mechanisms and expressed confidence that the proposed budget would contribute to economic progress, improved public services, and enhanced welfare outcomes across the province.