The Punjab government has finalized the broad framework of its budget for the fiscal year 2026-27. The proposed budget carries a total outlay of Rs 5.131 trillion. Officials are expected to present the budget with a focus on fiscal discipline and development spending.
According to budget details, Punjab will provide a financial concession of Rs 570 billion to the federal government. This contribution aims to help meet fiscal deficit requirements and comply with International Monetary Fund (IMF) targets. Consequently, the province will play a key role in supporting national financial commitments.
Punjab is expected to receive Rs 3.793 trillion from the National Finance Commission (NFC) Award. Meanwhile, provincial revenue collections are projected to reach Rs 1.330 trillion during the upcoming fiscal year.
Major Allocations for Salaries and Pensions
The proposed budget allocates Rs 650 billion for government employees’ salaries. In addition, the government has earmarked Rs 505.8 billion for pension payments. Sources said salary increases for provincial employees will follow the federal government’s budget decision.
The budget also proposes Rs 800 billion for the Punjab Finance Commission. Furthermore, the government plans to allocate Rs 25 billion for social security programs. These allocations aim to support public services and welfare initiatives across the province.
Development Spending Remains a Priority
The government has proposed Rs 150 billion for the Clean Punjab Programme. Moreover, Rs 54 billion has been allocated for projects financed through external assistance.
According to the budget framework, operational expenditures will receive Rs 580.2 billion. Another Rs 221.9 billion has been proposed for investments in various programs. Additionally, Rs 570 billion has been earmarked for other development and capital expenditures.
Punjab’s total expenditures are estimated at Rs 3.569 trillion. After covering these expenses, the province is expected to retain a development and fiscal space of Rs 1.562 trillion. Therefore, officials expect sufficient room for future development initiatives and strategic investments.
