Punjab unveils Rs5.9 trillion ‘budget of hope’ with no new taxes

Punjab Finance Minister Mujtaba Shuja ur Rehman unveiled the budget in the Provincial Assembly amid noisy protests from opposition lawmakers, who gathered near the

LAHORE: The Punjab government on Monday presented a Rs5.9 trillion surplus budget for the fiscal year 2026-27, describing it as a “Budget of Hope” focused on public welfare, development, and economic stability without introducing any new taxes.

Punjab Finance Minister Mujtaba Shuja ur Rehman unveiled the budget in the Provincial Assembly amid noisy protests from opposition lawmakers, who gathered near the Speaker’s chair, tore budget documents, and chanted slogans against the government.

Chief Minister Maryam Nawaz, who attended the session, said the budget was designed to provide maximum relief to citizens despite economic challenges. She emphasized that the government had fulfilled its commitments through prudent financial management and people-centric policies rather than burdening the public with additional taxes.

The budget reflects a 10.7 percent increase compared to the previous fiscal year. Government employees are set to receive a 7 percent salary increase, while pensions for retired employees are proposed to rise by 3.5 percent. Significant allocations have also been made for local governments, public services, and development projects.

Punjab plans to spend Rs752 billion on development initiatives in the upcoming fiscal year, while transfers from the federal government under the NFC Award are expected to exceed Rs4.39 trillion. The provincial government has also set ambitious revenue collection targets, aiming to strengthen financial self-reliance through improved tax administration and expansion of the tax base rather than new levies.

According to the finance minister, Punjab is on track to achieve record-breaking own-source revenue collection during the current fiscal year. He credited administrative reforms and better enforcement measures for the growth in revenues.

Earlier, the provincial cabinet formally approved the budget during its meeting chaired by Chief Minister Maryam Nawaz. Praising the efforts of ministers and officials involved in its preparation, she said the document reflects the government’s commitment to economic growth, social welfare, and development.

Maryam also directed the Punjab Revenue Authority to further improve revenue generation and expressed confidence that the new budget would meet public expectations while supporting the province’s long-term development goals.