Punjab Budget 2026-27 announced: Rs5.9trillion outlay focuses on public relief and infrastructure

LAHORE: Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented Rs 5,903.5 billion provincial budget for the fiscal year 2026-27 in the Punjab Assembly on Monday.

The over-arching fiscal design is embedded against backdrop of CM Maryam Nawaz Sharif’s “Economic Transformation Plan,” which comprises mega-infrastructure, green energy, techagriculture and a larger social safety net that neutralises further taxation pressure on citizens.

The budget, approved at a special cabinet session on September 29 in Karachi is based around complicated macroeconomic expectations of Rs1.2099 trillion for provincial own-source revenue and planned receipt from the federal National Finance Commission (NFC) divisible pool measured Rs4.390.inkection710 billion). Punjab has also pledged an additional much needed Rs 546 billion surplus grant to the federal government.

Salient Features of Punjab Budget FY 2026-27

Macro-Fiscal Breakdown & Revenue Targets

• Total Budget Outlay: Rs 5,903.5 Billion (approx. Rs 5.9 Trillion).

• Annual Development Programme (ADP): Allocated at Rs 752 Billion, including Rs 140.1 Billion secured through foreign-funded projects.

• Punjab Revenue Authority (PRA) Target: Positioned at Rs 516.5 Billion, marking a 15% increase.

• Excise, Taxation & Narcotics Control Target: Projected at Rs 45 Billion, representing a 77% growth drive through administrative efficiencies.

• Targeted Subsidies: Rs 67.2 Billion earmarked for public relief across agriculture, transport, and healthcare.

Major Health & Education Spotlights

• Nawaz Sharif Cancer Institute (Lahore): A massive Rs 20 Billion has been allocated for the Establishment of Nawaz Sharif Institute of Cancer Treatment and Research, Lahore.

• Chief Minister’s Laptop Program: Rs 10 Billion allocated to equip youth with modern IT tools.

• Nawaz Sharif Medical District: Allocated Rs. 169 Billion under the specialized healthcare development portfolio.

• Nawaz Sharif Cancer Hospital (DG Khan): Rs 1.2 Billion earmarked for the establishment of the Kohinoor Nawaz Sharif Cancer Hospital.

Livestock Sector Enhancements

Recognizing animal husbandry as a cornerstone of the rural economy, the budget details localized financial packages:

• Mobile Veterinary Care: Rs 10.16 Billion allocated for the Provision of Mobile Veterinary Dispensaries.

• Rural Women Empowerment: Rs 3.12 Billion explicitly dedicated to Empowering Rural Women through Livestock Support Project.

• Dairy Supply Chain: Rs 1 Billion for the Chief Minister Punjab’s Dairy Supply Chain Support Project.

• Medicines & Vaccines: Rs 5.7 Billion targeted for the purchase of livestock medicine and vaccines.

Public Sector Relief & Wages

• Salary Increase: A 7% increase in salaries for provincial government employees.

• Pension Relief: A 3.5% upward adjustment in pensions for retired officials.

• Total Pay & Pension Bill: Salary expenditures stand at Rs 638.9 Billion, while pensions account for Rs 500.1 Billion.

Sectoral Allocations (Development & Current Spending)

• Education Sector: Captures the highest share at Rs 750.1 Billion, financing major modernizations like multipurpose STEAM laboratories (Rs 33 Billion) alongside school public-private partnerships.

• Health Sector: Allocated Rs 500.6 Billion collectively to upgrade primary and specialized treatment networks.

• Local Government: Allotted Rs 409.8 Billion for community infrastructure and municipal services.

• Infrastructure & Roads: Secured Rs 272.8 Billion for mass-transit upgrades and inter-district connectivity.

• Public Safety & Police: Dedicated Rs 252.1 Billion for provincial security operations and safe city expansions.

• Agriculture Sector: Granted Rs 91.9 Billion, driven primarily by the high-impact Chief Minister Punjab Kisan Card scheme (Rs 10 Billion).

Driving Structural and Digital Transformation

According to the Provincial Finance Minister, the Punjab Government attaches great importance to creating jobs for the youth and developing technical infrastructures. Rs. 7.1 Billion have been allocated to Innovate Punjab for setting up incubators in frontier technologies, along with Rs. 3.5 Billion for training programs in languages and IT skills targeting global BPO industry.

The Chief Minister, Ms. Maryam Nawaz Sharif referred to the budget as a “shift towards sustainable prosperity” and emphasized the fact that unlike past budgets which depended on increased taxation, this budget focuses on making structural changes in the system and leveraging technology to deliver promises made to the people of Punjab.