The Punjab government on Tuesday presented a Rs5.903 trillion budget for fiscal year 2026-27, marking a 10.7% increase over the previous year, with a strong emphasis on public welfare, development, education, and healthcare.
Finance Minister Mian Mujtaba Shuja-ur-Rehman tabled the budget in the Punjab Assembly after securing approval from the provincial cabinet. The FY27 budget is the third presented under Chief Minister Maryam Nawaz Sharif’s administration.
Addressing the assembly, the finance minister said the provincial government had implemented austerity measures in line with directives from the federal government.
He also praised Prime Minister Shehbaz Sharif and Field Marshal Asim Munir for their role in the Iran–US peace agreement, describing it as a diplomatic achievement for Pakistan.
Development spending
The government has allocated Rs752 billion for development projects in FY27, with the finance minister stating that the province’s development agenda would continue without compromise.
NFC transfers
Budget documents show Punjab is expected to receive Rs4.39 trillion under the National Finance Commission (NFC) Award during FY27, representing an increase of 8.1% compared to the previous fiscal year.
Mujtaba noted that Punjab contributed Rs546 billion to the federal government and facilitated employment opportunities for more than 400,000 people.
Education
The education sector has been allocated Rs750 billion, accounting for 15% of the provincial budget.
The allocation covers several flagship initiatives, including 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 received Rs15 billion.
Health
The health sector has been allocated Rs500.62 billion for FY27.
Major initiatives include Rs20 billion for the Nawaz Sharif Institute of Cancer Treatment, along with funding for Maryam Nawaz Health Clinics across the province.
Salaries and pensions
The provincial government has proposed a 7% increase in salaries for public-sector employees and a 3.5% rise in pensions.
A total of Rs650 billion has been allocated for salaries, while pension expenditures are estimated at Rs505.8 billion.
Other allocations
The budget proposes Rs900 billion for the Punjab Finance Commission.
Additional allocations include Rs78.5 billion for the transport sector, Rs12.88 billion for the police department, and Rs3 billion for the judiciary.
The government has also earmarked Rs221.9 billion for investment-related initiatives.
Earlier, Chief Minister Maryam Nawaz Sharif chaired the 35th meeting of the provincial cabinet, which approved the FY27 budget.
The chief minister said that despite a reduction in Punjab’s NFC share, the government remains committed to providing maximum relief to citizens.
“There will be no compromise on public welfare, development projects, and the journey toward prosperity,” she said.
