Punjab unveils Rs 5,903.46b budget 2026-27 with focus on public services, development

LAHORE, Jun 16 (APP): The Punjab government on Tuesday presented a budget of Rs 5,903.46 billion for financial year 2026-27, marking a 10.7 percent increase over the outgoing FY. The budget contains a substantial Rs 752 billion under Annual Development Plan (ADP).

Delivering the budget speech during the Punjab Assembly session here, Provincial Finance Minister Mian Mujtaba Shuja-ur-Rehman said that despite economic challenges, the budget emphasizes fiscal discipline, relief for government employees and pensioners, and strengthened grassroots service delivery under Chief Minister Maryam Nawaz Sharif’s leadership.

He described the budget as a balanced document that trims unnecessary spending while protecting public welfare. Current expenditures have been reduced by 3.1 percent to Rs 1,962.93 billion through austerity measures, reflecting the government’s commitment to efficient resource use.

Regarding relief for employees and pensioners, he said, in a move that will bring cheer to hundreds of thousands of government servants as their salaries are set to rise by 7 percent with salary bill increase by 1.4 percent to Rs 638.93 billion. Pensioners will also receive a 3.5 percent increase taking the pension expenditure to Rs 500.12 billion.

These adjustments come alongside the government’s “Rightsizing” policy aimed at making administration more efficient without compromising the welfare of those who serve the province, he mentioned.

Mian Mujtaba said that effective steps are being taken to boost local governments and service delivery at grassroots level, and the government has allocated Rs 803.88 billion for local government institutions under the PFC Award — a 5.2 percent increase. Service delivery expenditures, he explained, stand at Rs 783.62 billion, of which Rs 578.62 billion will cover day-to-day operations of institutions (down 5.1 percent due to better management).

An additional Rs 679.01 billion has been proposed under current capital expenditures.

He highlighted that 2,638 ongoing development projects costing Rs 1,150 billion from the previous year are nearing completion — 16 percent higher than the previous year’s development spending. For 2026-27, a substantial Rs 752 billion has been earmarked for the development budget, made possible by better revenue collection and expenditure rationalization.

He said, Chief Minister Maryam Nawaz Sharif’s government is being praised for initiating a new era of development through disciplined financial management and public-friendly policies.

The Provincial Finance Minister said that on the receipts side, Punjab expects Rs 4,390.94 billion from the federal government under the NFC Award (8.1 percent higher than last year). The province has set an ambitious own-revenue target of Rs 1,209.86 billion for the coming year.

Punjab Revenue Authority (PRA): Rs 528.50 billion (55.4 percent increase);  Board of Revenue: Rs 86.19 billion; Excise & Taxation: Rs 124 billion (77 percent increase); and Non-tax revenues of Rs 461.17 billion (52 percent higher).

He informed the house that in the current year (2025-26), the province is expected to achieve 99 percent of its revenue target — collecting Rs 820.16 billion out of 828 billion — without imposing new burdens on the public, mainly by broadening the tax base and improving administration, adding that it is the highest own-source revenue in Punjab’s history.

Foreign-funded loans and an Estimated Provincial Surplus (EPS) of Rs 910 billion have also been factored in to maintain fiscal discipline in line with federal and IMF frameworks.

For common man, he said, this budget translates into more functional local governments, better-funded development projects in health, education and infrastructure, and continued support for government employees and retirees.

Provincial government’s emphasis is on completing ongoing projects and rationalizing spending aims to deliver visible improvements in daily life while building long-term financial self-sufficiency for the province, he maintained.