Punjab Budget 2026–27 Key Takeaways

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