LAHORE – Punjab Finance Minister Mian Mujtaba ur Rehman presented Rs5.9 trillion provincial budget for FY2026–27 on Tuesday. The budget, touted as people-friendly, is 10.7 percent larger than the current fiscal year’s outlay.
The budget session was attended by Chief Minister Maryam Nawaz Sharif, provincial ministers, and MPAs. The increased budget reflects the government’s plans to expand spending and development initiatives in the coming fiscal year. Punjab’s Budget 2026–27 focuses on public welfare, education, healthcare, agriculture, infrastructure, and economic development.
While relief measures for employees and social protection programs provide short-term support, the government’s larger investments in transport, housing, education, and health are designed to support long-term growth and improve public services across the province.
Record Budget
Punjab government proposed a budget of Rs5.9 trillion for the fiscal year 2026–27, making it one of the largest budgets in the province’s history. A significant portion of the province’s revenue is expected to come from federal transfers, while provincial tax collection is projected to cross Rs1.2 trillion, reflecting the government’s reliance on both federal support and improved revenue generation.
Relief for Employees, Pensioners
The budget proposes 7% increase in salaries for government employees and a 7% increase in pensions, aimed at providing relief against inflation and rising living costs. The government is also expected to announce an increase in the minimum wage, offering support to workers in the formal and informal sectors.
Education got Priority
With an allocation exceeding Rs900 billion, education remains a major focus of the budget. The government plans to continue student-focused initiatives such as laptop distribution, electric scooters, and bicycle schemes. Additional funds have been earmarked for scholarships and university grants to improve access to higher education and promote skill development among young people.
Healthcare
The health sector is set to receive approximately Rs680 billion, highlighting the government’s emphasis on improving healthcare services. Around Rs100 billion has been proposed for the provision of free medicines, while dedicated funding will also support treatment for cancer and stroke patients, reducing the financial burden on families.
Social Welfare Programs
The budget strengthens Punjab’s social safety net through increased spending on welfare initiatives. Funding has been allocated for the Ramadan relief package, ration card schemes, Himmat Cards, Minority Cards, and support programs for vulnerable groups. These measures are intended to provide direct assistance to low-income households and those most affected by economic pressures.
Agriculture Receives Strong Support
Agriculture, livestock, and aquaculture have been allocated more than Rs132 billion, reflecting the sector’s importance to Punjab’s economy. The budget continues support for farmers through the Kisan Card and Green Tractor programs, while investments in irrigation infrastructure aim to improve water management and agricultural productivity.
Housing and Development
The government’s flagship “Apni Chhat Apna Ghar” program is expected to provide interest-free loans for housing, helping families achieve home ownership. Additional funds have been proposed for village development and local infrastructure projects to improve living standards in both urban and rural areas.
Modern Transport Infrastructure
The budget includes major investments in public transportation and connectivity. Funding has been proposed for mass transit systems in Faisalabad and Gujranwala, while a new initiative will introduce 2,000 electric buses across tehsil headquarters. Railway rehabilitation and canal infrastructure projects are also expected to improve mobility and economic activity.
Environmental & Smog Control
Addressing environmental concerns remains a priority, particularly in urban areas affected by severe air pollution. The government plans to continue anti-smog efforts and is preparing a vehicle scrappage scheme aimed at removing older, high-polluting vehicles from roads. These measures are intended to improve air quality and public health.
Law and Order
Under the “Safe Punjab Vision,” substantial resources have been allocated to strengthen policing, surveillance, and public security infrastructure. The initiative seeks to improve law enforcement capabilities and enhance public safety across the province.
Youth, Sports, and Culture
The budget proposes significant spending on youth development programs, sports infrastructure, and cultural projects. Plans include the establishment of the Maryam Nawaz Sports City, upgrades to sports facilities, and the launch of a Punjab Film City project. These initiatives aim to create opportunities for young people, promote talent, and support the creative economy.
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