The Punjab government is expected to align any increase in salaries for provincial government employees with the federal government’s decision in the upcoming budget for the 2026-27 fiscal year, according to official sources.
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Budget proposals under consideration indicate that significant allocations have been earmarked for salaries, pensions and development spending as the province prepares its financial plan for the next fiscal year. Sources said approximately Rs650 billion is expected to be allocated for employee salaries, while pension expenditures are projected at around Rs505.8 billion.
Officials estimate that Punjab will generate nearly Rs1.33 trillion through provincial revenues during the upcoming fiscal year. These resources are expected to support a range of administrative, development and welfare programmes across the province.
According to the proposals, around Rs800 billion may be allocated for the Punjab Finance Commission to support local governments and regional development initiatives. Additional allocations under consideration include Rs25 billion for social protection programmes and Rs150 billion for the Suthra Punjab Programme aimed at improving sanitation and public services.
Sources further revealed that operational expenditures are expected to reach approximately Rs580.2 billion. Meanwhile, proposals suggest allocating Rs221.9 billion for investment and other development-related programmes designed to support economic growth and infrastructure expansion.
For projects financed through foreign assistance, an estimated Rs54 billion has been recommended. In addition, around Rs570 billion is proposed for development and capital expenditure initiatives across various sectors, including infrastructure, education, healthcare and public welfare.
The overall provincial expenditure for the next fiscal year is projected at approximately Rs3.57 trillion, reflecting the government’s focus on balancing administrative costs with development priorities.
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While discussions on salary increases continue, officials have indicated that the final decision will depend on the federal government’s budget announcement and overall fiscal framework. Public sector employees across Punjab are closely watching the upcoming budget, expecting measures aimed at addressing inflationary pressures and improving financial relief for government workers.