The Punjab government will present a Rs 5.903 trillion budget for fiscal year 2026-27 on Tuesday. The proposed outlay is 10.7 percent higher than last year’s budget. Moreover, the budget includes a seven percent salary increase for provincial government employees and a 3.5 percent rise in pensions.
Punjab Chief Minister Maryam Nawaz signed the budget documents after receiving cabinet approval. She also directed the Punjab Revenue Authority to strengthen revenue collection efforts across the province.
Government Focuses on Relief and Development
Maryam Nawaz praised the budget preparation team for working collectively to deliver public relief. She said the government avoided imposing new taxes despite financial constraints. Furthermore, she described the upcoming budget as people-friendly and focused on protecting citizens from additional financial burdens.
The chief minister also cited regional challenges and financial commitments to the federal government. However, she expressed confidence that the provincial government would continue meeting public expectations.
Education and Salaries Receive Major Allocations
Provincial Finance Minister Mujtaba Shuja-ur-Rehman will present the budget in the Punjab Assembly. According to sources, the government allocated Rs 650 billion for employee salaries and Rs505.8 billion for pensions. Meanwhile, only 47 percent of the available fiscal space has been earmarked for development spending.
The province expects to receive Rs 3.793 trillion under the National Finance Commission Award. It also projects generating Rs 1.330 trillion through provincial duties and other revenue sources. Additionally, the government proposed allocating Rs 800 billion for the Punjab Finance Commission and more than Rs 900 billion for education.
Punjab’s total expenditure is estimated at Rs 3.569 trillion. After meeting expenditures, the province expects a development and fiscal space of approximately Rs 1.562 trillion. The provincial government has also extended a financial concession of Rs 570 billion to the federal government.
