Punjab Finance Minister Mian Mujtabaur Rehman presented the provincial budget on Tuesday after the cabinet approved a people-friendly Rs5.9 trillion budget for fiscal year 2026-27.
Punjab Chief Minister Maryam Nawaz Sharif, provincial ministers and MPAs attended the session.
The proposed budget for the upcoming fiscal year is 10.7 per cent higher than the current year’s, according to the budget speech.
The Punjab government has projected total revenue for the upcoming fiscal year at Rs1.2tr.
Total current and capital expenditures are projected at Rs679 billion.
The government plans to spend Rs752 billion on development, Rs750bn on education and Rs500bn on health. The proposed allocation for education is 15pc higher than the amount allocated in FY2025-26, while the proposed allocation for health is 10pc higher than that of the current fiscal year. The Punjab government has proposed a 7pc increase in the salaries of government employees, taking total salary expenditure to Rs639bn.
According to the proposed budget, pensions for retired government employees will increase by 3.5pc, taking total pension expenditure to Rs500bn.
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 government is also proposing Rs1.9bn for the development and construction of autism schools in every division of the province.
A Rs6.9bn project for the establishment of IT labs in colleges is also being proposed.
The government has proposed Rs40bn for the Maryam Nawaz Sharif Centre of Academic Leadership, Nawaz Sharif Centre of Excellence, and STEAM laboratory programmes.
The Punjab government has proposed an allocation of Rs252bn for law and order in the upcoming fiscal year.
According to the proposed budget, Rs2.2bn will be spent on the construction of police stations and posts in riverine areas. A further Rs14bn has been set aside for the establishment of crime scene units in 28 districts.
To support ongoing mass transit projects in Gujranwala and Faisalabad, the government is proposing Rs26.6 billion in expenditure in the upcoming year.
In the proposed budget, the Punjab government expects to spend Rs168bn on an electric buses programme. For regional railways, the government is proposing a further Rs10bn in expenditure.
Earlier in the day, CM Maryam approved a “people-friendly” Rs5.9tr provincial budget for the fiscal year 2026-27 after the 35th meeting of the provincial cabinet accorded its formal approval to the budget document.
The chief minister, while chairing the meeting, said the government had made every possible effort to provide maximum relief to citizens and minimise the financial burden on them despite economic challenges and prevailing global conditions.
She added that although the province had to allocate a substantial amount as its share to the federation, the government remained committed to safeguarding public interests.
CM Maryam said the FY2026-27 budget had been prepared without imposing any new taxes and was focused on public welfare, development and prosperity. She described it as a budget of hope aimed at delivering relief to citizens through the province’s own resources.
The CM directed the Punjab Revenue Authority to take effective measures to enhance revenue generation and strengthen the province’s financial capacity.
Expressing confidence in the government’s performance, CM Maryam said she hoped the budget would meet the aspirations of the people as in previous years. She appreciated the collective efforts of the cabinet members and officials, saying the entire team had worked as one unit to prepare a people-friendly budget. She also prayed for the ability to continue serving the people of Punjab with sincerity and dedication.
The CM also lauded the efforts of Senior Minister Marriyum Aurangzeb, Provincial Finance Minister Mujtaba Shuja-ur-Rehman, Information Minister Azma Zahid Bukhari, Chief Secretary Zahid Akhtar Zaman, Finance Secretary Mujahid Sherdil and the entire team involved in preparing the budget.