The Punjab government has stated that any increase in salaries in the budget will be made in line with the federal government’s decision, according to reports on Tuesday. The announcement has come as good news for government employees ahead of Budget 2026-27.
According to the details, the Punjab government has finalised the outlines of the new financial year 2026–27 budget. According to the reports, the total volume is expected to be Rs5,131 billion.
Sources said that in a key economic decision, the Punjab government is ready to provide Rs570 billion in financial relief to the federal government.
This step is expected to help reduce the federal fiscal deficit and assist in meeting the strict targets set by the International Monetary Fund (IMF).
According to Punjab government sources, the province is expected to receive Rs3,793.7 billion from divisible federal revenues under the NFC Award in the new fiscal year. In addition to this, Rs1,330 billion is projected from its own revenues.
Total provincial expenditures are estimated at Rs3,569.6 billion. Of this, Rs650 billion is proposed for government employees’ salaries and Rs505.8 billion for pensions.
According to the reports, salary increases for employees will be made in accordance with the federal government’s decision.
As per the reports, it has also been proposed to allocate Rs800 billion for the Punjab Finance Commission, and Rs150 billion for the “Suthra Punjab Programme.” Additionally, Rs25 billion has also been proposed to allocate for social protection.
In addition to this, Rs580.2 billion has been proposed for operational expenses, Rs570 billion for development and capital expenditures, and Rs221.9 billion for other investment programs.
In addition, it is Rs54 billion for projects for which external assistance has been recommended.
When will Punjab present the Budget 2026-27?
The Punjab government will present its third budget on June 16, with no new taxes being imposed, according to reports on Monday.
Provincial Finance Minister Mujtaba Shuja-ur-Rehman announced the date during a pre-budget roundtable conference that had been organised by the Punjab Finance Department.
He said that the budget is being prepared on the instructions of Chief Minister (CM) Maryam Nawaz Sharif, keeping public needs and welfare in focus.
