The government of Punjab has reduced the development budget by 40 per cent in the annual budget session for the fiscal year 2026-27.
The Punjab government has decreased the numbers by 40% from the Rs1,240 billion in the Annual Development Program (ADP).
The reduction came due to the transaction of an amount of Rs749 billion being added to the national exchequer account.
While the government has allocated a large amount of Rs333.66 billion for the social sector, which is also said to be the top priority of the government.
The infrastructure development got Rs117.24 billion, Rs103.25 billion for the production sector, Rs79.95 billion and Rs38.82 billion for the governance and law and order, and climate sector, respectively.
The social sector hierarchy including the Local Government and Community Development received an amount of Rs115.5 billion, while the Water and Sanitation department got Rs62.76 billion.
The Punjab government has also allocated the funds for healthcare, education, infrastructure and transport development.
In the social sector, Rs43.1 billion has been marked for Specialised Healthcare and Medical Education, while Rs33.2 billion has been allocated for Health and Population.
Higher Education will receive Rs30.5 billion and School Education Rs25.3 billion, reflecting continued emphasis on human capital development.
Infrastructure spending is led by the Communication and Works department, which has been allocated Rs74.1 billion for road networks and public infrastructure projects. The Irrigation sector will receive Rs30 billion.
In the production sector, Agriculture has been allocated Rs60 billion, underscoring its central role in the provincial economy.
Other allocations include Rs16.65 billion for Industries, Commerce and Investment, Rs12.56 billion for Skills Development and Entrepreneurship, Rs6.75 billion for Livestock and Dairy Development, and Rs6 billion for Tourism, Archaeology and Museums.
Transport dominates the services sector, receiving Rs78.5 billion out of a total Rs86.08 billion allocation, making it one of the largest single-sector expenditures in the budget.
Environmental spending includes Rs15.42 billion for Environment and Climate Change, Rs15.3 billion for Aquaculture and Fisheries, and Rs8.1 billion for Forestry and Wildlife.
In governance and law and order, Planning and Development has been allocated Rs25.35 billion, the Board of Revenue Rs18.95 billion, and Police Rs12.88 billion, alongside smaller allocations across departments including social welfare, judiciary, information technology and public prosecution.
Officials said that the spending plan is aimed at balancing infrastructure expansion with social sector investment, though implementation efficiency and fiscal constraints are expected to remain key challenges.
Read more: ‘Redapple’ diner in F-6 Markaz, Islamabad sealed over tax fraud
Also read: British parliamentarian Baroness Chapman praises Pakistan for US-Iran peace deal
