Lahore – The Punjab government has finalised the outline of the budget for the upcoming fiscal year 2026-27, according to which the total budget volume of the province is proposed to reach Rs 5,131 billion. According to official sources, this budget has been prepared keeping in mind the development needs of the province, the social sector and fiscal discipline.
Punjab Assembly sources claim that the provincial government is considering providing a fiscal concession of up to Rs 570 billion to the federal government, which could help the federation reduce its fiscal deficit and meet the IMF targets.
Under the National Finance Commission (NFC), Punjab is expected to receive Rs 3793.7 billion from distributable revenue, which will provide the foundation for the provincial fiscal structure.
According to sources, the Punjab government is expected to earn Rs 1330 billion from its own provincial revenues, which is being considered an important step towards the province’s financial self-reliance.
The budget proposes to increase the salaries of government employees in accordance with the decision of the federal government so that the uniformity of salaries can be maintained across the country.
On the expenditure side, the largest share will be spent on salaries and pensions. It has been recommended to allocate Rs 650 billion for the salaries of government employees, while Rs 505 billion 800 million has been allocated for pensions.
It has also been proposed to allocate Rs 800 billion for the Punjab Finance Commission, which will be used to financially support local governments and development projects.
It has been proposed to keep Rs 25 billion for social security programmes, while Rs 150 billion is for the province’s cleanliness and urban improvement programme “Sathra Punjab”.
It has been recommended to allocate Rs 580 billion 20 crore for operational expenses, which will cover the daily expenses of government institutions.
It has been proposed to allocate Rs 221.9 billion for investment and other development programmes, while Rs 54 billion is for externally funded projects.
It has been recommended to allocate Rs 570 billion for development and capital expenditure, which will play an important role in the completion of infrastructure and development projects.
According to experts, this Punjab budget is an attempt at fiscal stability and development balance; however, the decision to grant a possible financial concession to the federation may also put further pressure on the provincial fiscal capacity.
