The Punjab government has presented a budget with a total outlay for the fiscal year 2026–27 of Rs 5.903 trillion, representing a 10.7 per cent increase compared to the current fiscal year
According to details, the most important session of the Punjab Assembly commenced under the chairmanship of Speaker Malik Muhammad Ahmed Khan, during which Provincial Finance Minister Mujtaba Shuja-ur-Rehman began presenting the provincial budget for the fiscal year 2026–27 before the House.
At the start of the session, opposition members strongly opposed the budget and staged a protest in front of the Speaker’s dais, chanting slogans against the government. Their protest created considerable commotion and noise in the assembly.
Despite the tense atmosphere and persistent opposition protests, Finance Minister Mujtaba Shuja-ur-Rehman continued his budget speech uninterrupted.
Addressing the House, he stated that the proposed total budget outlay for fiscal year 2026–27 is Rs 5.903 trillion, representing a 10.7 per cent increase over the current fiscal year.
He said that current expenditures have been estimated at Rs 1.963 trillion, which is 3.1 per cent lower than the current fiscal year, mainly due to the government’s austerity measures.
Govt announces 7% salary increase for employees
The minister announced a 7 per cent increase in the salaries of government employees for the next fiscal year. As a result, salary-related expenditures will rise by only 1.4 per cent to Rs 638.93 billion, reflecting the impact of the government’s rightsizing policy.
3.5% increase in pensions
A 3.5 per cent increase has also been proposed in the pensions of retired government employees, bringing the province’s total pension expenditure to Rs 500.12 billion.
To strengthen service delivery at the grassroots level, the government has allocated Rs 803.88 billion to local government institutions under the Provincial Finance Commission (PFC) Award, an increase of 5.2 per cent.
Expenditure on service delivery has been set at Rs 783.02 billion, of which Rs 578.62 billion has been earmarked for institutional operational expenses. This represents a 5.1 per cent decrease from the previous fiscal year due to effective cost-control measures implemented by the government.
The provincial finance minister further stated that Rs 679.1 billion has been proposed under current capital expenditure as part of the budget for the next fiscal year.
To provide services to the public at the grassroots level, a total of Rs 803.88 billion has been allocated to local government bodies under the Provincial Finance Commission (PFC) award, representing an increase of 5.2%.
Expenditure on service delivery is estimated at Rs 783.02 billion, of which Rs 578.62 billion has been allocated for the operational and day-to-day expenses of these institutions. This amount is 5.1% lower than the allocation in the previous fiscal year, reflecting the impact of effective cost-control measures taken by the government.
The Provincial Finance Minister further stated that Rs 679.01 billion is proposed to be included in the budget for the next fiscal year under current capital expenditure.
For Health Sector
The Punjab Finance Minister announced that Rs 500.62 billion has been allocated to the health sector. As a major initiative for cancer patients, Rs 20 billion has been earmarked for the Nawaz Sharif Institute of Cancer Treatment.
He also stated that a Stroke Initiative is being launched with an allocation of Rs. 1.20 billion to improve treatment and care for stroke patients. In addition, a unique network of neurocath labs will be established.
The Finance Minister further announced that a Children’s Hospital will be built in Bahawalpur for Rs. 23.37 billion to serve the children of southern Punjab. Moreover, state-of-the-art MRI machines will be installed in 29 teaching hospitals across Punjab.
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