Punjab Government Presents Tax-Free Budget for FY2026-27, Prioritises Health and Education

Lahore: The Punjab government has presented a budget of Rs 5.9 trillion for the financial year 2026-27, in which special priority has been given to education, health, infrastructure and public welfare projects. The provincial cabinet, chaired by Punjab Chief Minister Maryam Nawaz Sharif, approved the budget, which the government has declared a people-friendly and development budget.

According to the budget presented in the Punjab Assembly session, the total provincial revenue for the next financial year has been estimated at Rs1.2 trillion, while billions of rupees have been allocated for development and ongoing expenses. The government has proposed to keep Rs752 billion for development projects that will play an important role in promoting infrastructure and public services in the province.

Rs 750 billion has been allocated for the education sector, which is 15 percent more than the previous financial year. The budget has proposed Rs 6.9 billion for setting up IT laboratories in colleges, while Rs 40 billion is for the Maryam Nawaz Sharif Centre of Academic Leadership, the Nawaz Sharif Centre of Excellence and STEAM Laboratory programmes.

The health sector has also been given significant importance and Rs500 billion has been proposed for it. According to the budget documents, Rs20 billion has been earmarked for the under-construction Nawaz Sharif Institute of Cancer Treatment and Research, while Rs169 billion has been allocated for the establishment of Nawaz Sharif Medical District.

In addition, Rs15.21 billion has been proposed for a cancer hospital in Dera Ghazi Khan and Rs23.37 billion for a children’s hospital in Bahawalpur. The government has also proposed to allocate Rs1.9 billion for a project to set up autism schools in each division.

A 7 percent salary increase has been proposed in the budget for government employees, while a 3.5 percent increase in pensions for retired employees has been proposed. A total of Rs639 billion has been estimated to be spent on salaries and Rs500 billion on pensions.

Rs252 billion has been allocated for the law and order sector. Rs2.2 billion has been proposed for the construction of police stations and outposts in riverine areas, while Rs14 billion has been proposed for the establishment of crime scene units in 28 districts.

In the transport sector, Rs26.6 billion has been proposed for the mass transit projects of Faisalabad and Gujranwala and Rs168 billion for the electric bus program. Rs10 billion has also been allocated for regional railway projects.

Chief Minister Maryam Nawaz Sharif says that no new taxes have been imposed in the budget and the government has tried to keep the financial burden on the people to a minimum. He expressed hope that this budget will create new opportunities for development, employment and public welfare and further strengthen the economic activities of Punjab.