The Punjab government is likely to present a tax-free budget for the upcoming fiscal year, according to sources in the provincial finance department, with a focus on sustaining subsidies, development spending and public welfare initiatives.
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Sources said tax revenue for the next financial year is expected to be set at around Rs712 billion. The largest contribution is projected to come from the General Sales Tax (GST) on services, which is expected to generate approximately Rs320 billion.
The Punjab government has entered the final stages of preparing its budget for fiscal year 2026-27, with budget proposals from all provincial departments now received and under review. According to finance ministry sources, the upcoming budget is expected to focus on public… pic.twitter.com/s3d2ClNkUc
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Revenue from excise duty is estimated at Rs128 billion, while stamp duty and registration fees are likely to contribute around Rs90 billion. Authorities are also expecting Rs82 billion from sales tax collections and nearly Rs47 billion from motor vehicle taxes.
According to the proposed estimates, taxes and duties related to electricity could generate Rs35.2 billion, while land revenue collections are projected at around Rs1.7 billion.
The budget is also expected to prioritize infrastructure and public services, with more than Rs550 billion proposed for transport and local government sectors. Officials believe these allocations will support urban development, improve public facilities and strengthen service delivery across the province.
Sources further indicated that subsidy programmes for farmers, students and labourers are likely to continue in the next fiscal year. Farmers may receive support through subsidies on tractors, solar-powered tube wells, quality seeds and agricultural loans for fertilizer purchases.
For students, flagship initiatives such as the Honhaar Scholarship Programme and the electric bike scheme are expected to remain in place to encourage education and improve mobility.
The government is also likely to maintain its policy of allocating at least 35 percent of development funds to South Punjab projects. The measure aims to promote balanced regional development and accelerate infrastructure improvements in less-developed areas.
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While the budget proposals have not yet been officially announced, the expected measures indicate a continued emphasis on economic support, development spending and targeted relief for key sectors of society.