LAHORE (Kashmir English): Punjab Finance Minister Mian Mujtabaur Rehman on Tuesday presented the Rs5.9 trillion provincial budget for fiscal year 2026-27 after the cabinet’s approval.
According to the budget speech, the Punjab government has proposed a 7 percent increase in the salaries of government employees with a total expenditure of Rs 639 billion, while a 3.5 percent increase was proposed for pensions with total allocations of Rs 500 billion.
Furthermore, it is proposed to give Rs 803 billion to local bodies under the PFC award and to keep the service delivery expenditure at Rs 783 billion.
Moreover, the government has projected total current and capital expenditures at Rs 679 billion and total revenue for the upcoming fiscal year at Rs1.2 trillion. The government also plans to spend Rs 752 billion on development, Rs 750 billion on education, and Rs 500 billion on health.
The total budget outlay is set at Rs 5,903 billion, which is 10.7 percent higher compared to last year. The government is estimated to receive Rs 4,390 billion from the NFC award from the federation, while the provincial revenue target has been set at Rs 1,209 billion.
A surplus budget of Rs 910 billion is also included under the financial framework agreed with the IMF.
Allocations in education sector
In the education sector, Rs 27 billion has been allocated for 110,000 laptops under the CM Laptop Program, and Rs 15 billion has been allocated for the Honhar Scholarship Program.
The government has also expanded efforts to address child malnutrition through the School Nutrition Programme. Under the initiative, milk is being provided to approximately 1.12 million students in 13 districts. Officials stated that nearly 44 percent of children in the province have been affected by malnutrition. An allocation of Rs 4 billion has been proposed for the programme in the next fiscal year.
Punjab’s first state-of-the-art autism school has been established in Lahore for Rs 670 million. The government now plans to establish autism schools in every district of the province, with a total projected cost of Rs 4.5 billion. An initial allocation of Rs 1.9 billion has been proposed for the upcoming fiscal year.
A Rs6.9bn project for the establishment of IT labs in colleges is also being proposed.
In the next fiscal year, Rs 40 billion has been proposed for the Maryam Nawaz Center of Academic Leadership, Nawaz Sharif Center of Excellence, and STEM Laboratories Program.
In the health sector, the government will spend Rs20bn on the under-construction Nawaz Sharif Institute of Cancer Treatment and Research. According to the proposed budget, Rs169bn has been allocated for the establishment of the Nawaz Sharif Medical District.
The Punjab government has also set aside Rs1.75bn for Neuro Cath Labs under the Stroke Initiative. A further Rs5bn has been proposed for emergency services in the upcoming fiscal year.
The government is also proposing a further Rs15.21bn for a cancer hospital in Dera Ghazi Khan, along with Rs23.37 billion for a children’s hospital in Bahawalpur.
The Punjab government has proposed an allocation of Rs 252 bn for law and order in the upcoming fiscal year. Rs2.2bn will be spent on the construction of police stations and posts in riverine areas, and further Rs14bn has been set aside for the establishment of crime scene units in 28 districts, according to the budget speech.
To support ongoing mass transit projects in Gujranwala and Faisalabad, the government has proposed Rs26.6 billion in expenditure in the upcoming year.
