Budget 2026-27 Salary Raise Criteria Decided

LAHORE: The government of Punjab has stated that salary increases for government employees in the upcoming 2026-27 budget will be aligned with the federal government’s decision.

According to the details, the government of Punjab has finalized the features of the upcoming budget 2026-27, under which the size of the provincial budget is likely to be at Rs.5,131 billion.

Sources said that by taking an important financial decision, Punjab is ready to extend a significant financial adjustment of Rs. 570 billion to the center, which will help the federal government to cut its fiscal deficit and meet International Monetary Fund (IMF) challenging targets.

Sources within the Punjab government claim that under the National Finance Commission (NFC) award, Punjab will receive Rs. 3,793.70 billion in divisible tax revenue, while the province’s own tax revenue is expected to be Rs 1,330 billion.

The total expenditure of Punjab has been estimated at Rs. 3,569.60 billion, while Rs. 650 billion has been proposed to be earmarked for government salaries and Rs. 505.80 billion for pensions.

Meanwhile, Rs. 800 billion has been proposed for the Punjab Finance Commission, Rs. 150 billion for ‘Suthra Punjab Program,’ and Rs. 25 billion has been reserved for social security.

Along with this, Rs. 580.20 billion for operational expenses and Rs. 570 billion have been proposed for development and capital expenditures.

An additional Rs. 221.90 billion has been suggested to allocate for investment-related programs, and Rs.54 billion for foreign-aided projects.