Punjab unveils Rs5.13 trillion budget plan

The Punjab government has completed preparations for its budget for the fiscal year 2026-27. The total budget

Lahore: The Punjab government has completed preparations for its budget for the fiscal year 2026-27. The total budget size has been proposed at Rs5.131 trillion, making it one of the largest provincial budgets in the country’s history.

According to sources, the provincial government will provide a financial adjustment of Rs570 billion to the federal government as part of intergovernmental fiscal arrangements. Punjab is expected to receive Rs3.793 trillion from the divisible pool under the National Finance Commission (NFC) Award. In addition, the province aims to generate Rs1.33 trillion through its own tax and non-tax revenue sources.

A significant portion of the budget has been allocated to employee-related expenditures. The government has proposed Rs650 billion for salaries of public sector employees and Rs505.8 billion for pension payments. Sources said any increase in salaries and pensions will be linked to the decisions announced by the federal government in its upcoming budget.

The provincial government has also proposed major allocations for local governance and public welfare. An amount of Rs800 billion has been earmarked for the Punjab Finance Commission to support local governments and development initiatives across the province.

For social welfare and poverty alleviation programs, Rs25 billion has been proposed. Meanwhile, Rs150 billion has been allocated for the Suthra Punjab Program, aimed at improving sanitation, waste management, and cleanliness standards in urban and rural areas.

Operational expenditures of the provincial government are expected to reach Rs580.2 billion, covering administrative and day-to-day government functions.

Sources further revealed that Rs221.9 billion has been set aside for investment-related activities. Another Rs54 billion is proposed for development projects being carried out with the assistance of international donors and foreign development partners.

The budget also includes a proposed allocation of Rs570 billion for development and capital expenditures. These funds will be utilized for infrastructure projects, public facilities, and other long-term development initiatives across Punjab.

Overall provincial expenditures are estimated at Rs3.569 trillion. After meeting these expenditures, Punjab is expected to retain a development and fiscal space of Rs1.562 trillion. This financial cushion is expected to provide the province with greater flexibility to fund new projects, strengthen public services, and support economic growth during the next fiscal year.