LAHORE: Punjab cabinet, which met here on Tuesday with Chief Minister Maryam Nawaz Sharif in the chair, approved the budget for the Fiscal Year 2026-27.
Addressing the cabinet meeting, the chief minister thanked Almighty Allah for the opportunity to present her third provincial budget.
“Punjab had contributed the highest share to the federal government for defence and other expenditures. Despite receiving a reduced share under the Federal Finance Commission (FFC) award, the provincial government remained determined to provide relief to the people through its own resources,” she said.
Maryam Nawaz said she had continued to participate in meetings through video link even during illness to fulfill her commitment to public welfare and relief measures.
“The journey of public service and relief will continue as before,” she said, adding that there would be no compromise on the development and progress of the people of Punjab.
The CM said the provincial budget for fiscal year 2026-27 was a “budget of hope” aimed at providing relief to the people through the province’s own resources. She acknowledged the entire team had worked as “one unit” to formulate a people-friendly budget, and deserved appreciation for its efforts.
“We had to allocate a substantial share to the federation, which naturally had an impact, but every effort was made to ensure that no additional burden was placed on the public and that the impact on citizens remained minimal,” she said, adding: “Despite financial constraints and challenging global economic conditions, the Punjab government had presented a budget focused on public welfare and prosperity without imposing any new taxes.”
She said the budget’s central focus was public development and relief, expressing confidence that the government would continue to meet the expectations of the people, as it had done in previous years. “I pray that Allah Almighty grants us the ability to serve the people of Punjab with sincerity and dedication,” she added.
Earlier, the chief minister formally approved the provincial budget for FY2026-27 and signed the budget documents after the cabinet endorsed the proposals.
The CM also commended Senior Minister Marriyum Aurangzeb, Provincial Finance Minister Mujtaba Shuja-ur-Rehman and Information Minister Azma Zahid Bukhari for their contributions to the budget process. She further appreciated Chief Secretary Zahid Akhtar Zaman, Finance Secretary Mujahid Sherdil and the entire team involved in preparing the budget.
The chief minister also directed the Punjab Revenue Authority to take further measures to enhance revenue collection.
The cabinet was presented the Rs 5.903 trillion budget for the fiscal year 2026-27.
Provincial Finance Secretary Mujahid Sherdil briefed the cabinet on the budget estimates for the upcoming financial year.
The CM directed officials to enhance provincial resources to finance public welfare projects. For the first time, revenue targets for the Punjab Revenue Authority (PRA) have been increased by 55 percent, while targets for the Excise, Taxation and Narcotics Control department have been raised by 77 percent. Overall provincial own-source revenue targets have been increased by 42.7 percent.
The cabinet approved a seven percent increase in salaries of provincial government employees and a 3.5 percent increase in pensions. It also approved a grant of Rs 22 billion for municipal corporations.
Senior Minister Marriyum Aurangzeb briefed the meeting on the Annual Development Programme and thanked the chief minister for providing guidance despite illness.
During the briefing, it was informed that Rs 31 billion has been earmarked under the Punjab Development Programme for South Punjab and other remote areas. An estimated Rs 300 billion has been allocated for the Chief Minister Rural Sanitation Programme. The government plans to provide 2,000 electric buses across all tehsils of Punjab. A sum of Rs 67.2 billion has been allocated for targeted subsidies aimed at supporting low-income segments of society.
According to the development framework presented to the cabinet, allocations include 9.4 percent for agriculture, aquaculture and livestock; 6.5 percent for climate resilience, environment and sustainability; and 19.3 percent for economic transformation.
The share of e-mobility and transport has been set at 8.9 percent, human capital investment and social development at 30.1 percent, urban and rural infrastructure at 21.2 percent, and youth empowerment, skill development and the digital economy at 4.7 percent. Climate and ecology account for 5 percent of the development portfolio, governance, law and order 10 percent, infrastructure development 16 percent, economic sectors 14 percent, services sector 11 percent, and social sector 44 percent.
The briefing further stated that the Punjab government will spend Rs 100.117 billion through 15 departments on youth-focused initiatives, while Rs 87.039 billion will be spent through 12 departments on programmes promoting gender equality. Under the Katcha Area Development Programme, a total of 53 development projects worth Rs 38.9 billion will be completed. On the instructions of the chief minister, NADRA mobile registration vans have, for the first time, been deployed in Katcha areas to facilitate registration and related services.
Speaking on the occasion, the CM said Punjab had achieved significant and undeniable progress across all sectors during the past two years. She noted that the province had carried out a historic rescue and relief operation during floods. She expressed confidence that the provincial government would overcome financial challenges through teamwork and emphasised that no development project would be compromised.
The chief minister observed that the federal government had not only reduced Punjab’s share but had also placed one category of taxation in IMF documentation. Despite these constraints, she said, the provincial government remained determined and optimistic.
Copyright Business Recorder, 2026