LAHORE: The Punjab government has unveiled a significantly reduced Annual Development Programme (ADP) of Rs752 billion for the fiscal year 2026-27, marking a nearly 40 per cent decline from last year’s Rs1.24 trillion development budget.
The reduction comes after the province surrendered Rs749 billion to the federal government, resulting in tighter fiscal space for development spending. Despite the cut, social sector projects remain the government’s top priority, receiving the largest share of the ADP at Rs333.66 billion.
Within the social sector, Local Government and Community Development has been allocated Rs115.5 billion, while Water and Sanitation will receive Rs62.76 billion. The health sector also secured substantial funding, with Rs43.1 billion earmarked for Specialised Healthcare and Medical Education and Rs33.2 billion for Health and Population initiatives. Higher Education has been allocated Rs30.5 billion and School Education Rs25.3 billion.
Infrastructure development received the second-largest allocation of Rs117.24 billion. The Communication and Works Department will receive Rs74.1 billion for road and public infrastructure projects, while Irrigation has been allocated Rs30 billion to support water management and agriculture.
The production sector has been allocated Rs103.25 billion, with Agriculture receiving the largest share at Rs60 billion. Additional funding includes Rs16.65 billion for Industries, Commerce and Investment, and Rs12.56 billion for Skills Development and Entrepreneurship.
The services sector has been allocated Rs86.08 billion, of which transport projects account for Rs78.5 billion. Meanwhile, Rs38.82 billion has been set aside for climate and ecology-related initiatives, including environmental protection, fisheries, forestry and wildlife conservation.
Another Rs72.95 billion has been earmarked for governance, law and order, with major allocations directed toward Planning and Development, the Board of Revenue and the Police Department.
The ADP reflects the Punjab government’s effort to balance fiscal constraints while maintaining investments in social welfare, infrastructure development, economic growth and environmental sustainability.