Punjab Unveils Rs5.9 Trillion Budget for FY2026-27, Projects Rs910 Billion Surplus
The Punjab government has presented a Rs5.903 trillion budget for the financial year 2026-27, anticipating an estimated cash surplus of Rs910 billion. The budget proposes a 7% salary increase for government employees and a 3.5% rise in pensions. Significant allocations include Rs750 billion for education and Rs500.82 billion for the health sector. Finance Minister Mujtaba Shujaur Rehman stated that no additional tax burden would be placed on the public, emphasizing welfare, growth, and self-reliance, despite a reduction in the Annual Development Programme.
The Punjab government on Tuesday, June 17, 2026, unveiled its Rs5.903 trillion budget for the upcoming financial year, projecting an estimated cash surplus of Rs910 billion. This budget is 10.7% higher than the current fiscal year's budget, with total estimated expenditures increasing by 9.6% to Rs5.68 trillion from the outgoing year's Rs5.335 trillion.
Finance Minister Mujtaba Shujaur Rehman presented the budget, stating that the government has adopted fiscal discipline and administrative reforms to support public welfare and development initiatives amidst economic challenges. He emphasized that the budget focuses on welfare, growth, and self-reliance, with no new tax burden placed on the public.
Key allocations include Rs750 billion for the education sector and Rs500.82 billion for health. Agriculture, livestock, and aquaculture are set to receive Rs132.54 billion. For government employees, a 7% salary increase has been proposed, along with a 3.5% increase in pensions.
The Annual Development Programme (ADP) has been set at Rs752 billion, a reduction of approximately 39.3% from the outgoing year's estimate of Rs1.24 trillion. Current expenditures are estimated at Rs1.963 trillion, reflecting a 3.1% decrease due to austerity measures.
General revenue receipts are projected to increase from Rs4.74 trillion in the outgoing fiscal year to Rs5.60 trillion. Provincial own-source revenue is targeted at Rs1.21 trillion, with the Punjab Revenue Authority given a collection target of Rs528.86 billion, a 55.4% increase. The Excise and Taxation Department aims for Rs124 billion, a 77% increase. Non-tax revenue collection is estimated at Rs461.17 billion, up 52% from last year. This increase in revenue is expected through broadening the tax base rather than increasing the burden on existing taxpayers.
The budget also includes a Rs910 billion estimated provincial surplus, designed to comply with the financial framework agreed upon between the federal government and the IMF. Additionally, a Rs546 billion grant to the federal government is included, marking the first time such a grant has been made in the province's history. The province expects to receive Rs4.201 trillion under the NFC Award and foreign-funded loans totaling Rs190.44 billion.
Initiatives in education include the Chief Minister’s Laptop Programme and the Honhaar Scholarship Programme, along with plans for new autism schools in every division and the establishment of IT labs in colleges. Health sector projects encompass new cardiac facilities, upgraded teaching hospitals, and the establishment of a Nawaz Sharif Medical District. Economic transformation efforts include the Punjab Innovation for Value, Opportunity and Transformation (PIVOT) initiative, a three-year plan with an envisaged investment of nearly Rs1.995 trillion.
According to Dawn Pakistan, the budget emphasizes prudent financial management, expenditure rationalization, and revenue mobilization as core fiscal strategies. The government also highlighted interest-free financing schemes under the Asaan Karobar Programme and funding for various infrastructure and housing projects like the Saaf Pani Programme and Apni Chhat Apna Ghar.
