Rs5.9 trillion Budget 2026-27 unveiled as Punjab promises relief, no new taxes
The Punjab finance minister presents people-friendly budget of Rs5.9 trillion in assembly for fiscal year 2026-27. The budget was approved by the provincial cabinet before its presentation in the assembly.
Punjab Finance Minister Mian Mujtabaur Rehman presented the budget on Tuesday in a session attended by Chief Minister Maryam Nawaz Sharif, ministers and MPAs. The house saw detailed announcements on spending and development priorities.
According to the budget speech, the proposed budget is 10.7pc higher than the previous fiscal year. The government has projected total revenue of Rs1.2 trillion for the upcoming year.
Total current and capital expenditure is estimated at Rs679 billion. The budget also places strong focus on development, education and health sectors.
The government has allocated Rs752 billion for development projects. Education has been given Rs750 billion, while health receives Rs500 billion under the new plan.
Education spending is 15pc higher than the previous year, while health allocation is 10pc higher. Officials said these increases reflect a stronger focus on public services.
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Government employees will get a 7pc salary increase, taking total salary expenditure to Rs639 billion. Pensions for retired employees will also rise by 3.5pc, reaching Rs500 billion.
In the health sector, Rs20 billion has been allocated for the Nawaz Sharif Institute of Cancer Treatment and Research. Another Rs169 billion is reserved for the Nawaz Sharif Medical District.
The government also proposed Rs1.75 billion for Neuro Cath Labs under the Stroke Initiative. An additional Rs5 billion has been set aside for emergency services.
For major hospitals, Rs15.21 billion is allocated for a cancer hospital in DG Khan. Another Rs23.37 billion is proposed for a children’s hospital in Bahawalpur.
Chief Minister Maryam Nawaz Sharif called it a people-friendly budget after the cabinet’s 35th meeting approved it. She said the government tried to give maximum relief despite economic challenges.
She added that no new taxes have been imposed in the budget. She described it as a “budget of hope” focused on public welfare and development.
The CM also directed the Punjab Revenue Authority to improve revenue collection. She said strengthening financial capacity is necessary for future progress.
Officials said the budget reflects collective efforts of the cabinet and departments. The leadership expressed confidence that it will meet public expectations.
The budget shows a clear focus on development and social sectors. Education and health spending have been increased significantly compared to last year.
The government is also trying to balance relief with financial discipline by avoiding new taxes. However, the success of this plan will depend on revenue generation and execution on ground.
