Punjab govt presents Rs5.9trn budget for FY2026-27

The Punjab government presented its budget for fiscal year 2026-27 on Tuesday, with an estimated outlay exceeding Rs5.903 trillion, up by 10.7%. Finance Minister Mian Mujtaba Shuja-ur-Rehman laid the proposed budget before the Punjab Assembly after it was approved by the provincial cabinet.

The FY26-27 budget is the third under Chief Minister Maryam Nawaz Sharif. Officials said it reflects a commitment to pro-people policies and sustainable development, with a heavy focus on targeted public relief, health, and education infrastructure.

Addressing the lawmakers, Mujtaba said that the provincial government, following instructions of the federal government, adopted austerity measures.

He lauded the role of Prime Minister Shehbaz Sharif and Field Marshal Asim Munir on the Iran–US peace agreement, terming it a diplomatic success for Pakistan.

Development expenditure

Mujtaba said that Rs752 billion has been earmarked for development projects in Punjab for FY27, adding that no compromise has been made on the province’s development agenda.

Punjab’s share in NFC

As per the budgetary documents, under the NFC award, Rs4.39 trillion is expected to be transferred to Punjab under the NFC Award in FY27, which is 8.1% higher than the previous year.

Punjab expects to generate Rs 525 billion through the Punjab Revenue Authority and Rs 124 billion from the Excise and Taxation Department, with an estimated surplus of about Rs 910 billion.

From this amount, Rs546 billion will be given to the federal government as a grant under national strategic requirements.

Education

The provincial government earmarked Rs750 billion for education, making 15% of the provincial budget.

The allocation includes funding for the CM Punjab Laptop Programme, under which 110,000 laptops are planned for distribution, the Honhaar Scholarship Programme, and the School Meal Programme, which has been allocated Rs15 billion.

Health

The health sector received an allocation of Rs500.62 billion in FY27.

Key projects include Rs20 billion for the Nawaz Sharif Institute of Cancer Treatment.

The government also allocated resources for Maryam Nawaz Health Clinics.

Salaries and pensions

The provincial government decided to increase salaries of public sector employees by 7% and pension by 3.5%.

Earlier, Chief Minister of Punjab Maryam Nawaz Sharif chaired the 35th meeting of the provincial cabinet to approve the budget for the financial year 2026-27.

The CM stated that despite the reduction in the NFC share, the government was determined to provide maximum relief to the people of Punjab. “There will be no compromise on public welfare, development projects, and the journey toward prosperity,” she said.