The Punjab government is finalizing its fiscal year 2026-27 budget, expected to be presented on June 8. The budget, with an anticipated size of Rs6 trillion, is set to focus on development projects, infrastructure, digital transformation, and public welfare programs across both urban and rural areas.
Development Spending Takes Priority
Development initiatives are set to receive special attention, with an initial outlay of approximately Rs1.45 trillion, potentially rising to Rs1.5 trillion if additional resources become available. Under proposals from the Planning and Development Board, Rs980 billion may be allocated for core development programs, Rs320 billion for other development schemes, and Rs150 billion for foreign-assisted projects.
Education and Health Sector Investments
The education sector is expected to receive between Rs650 billion and Rs750 billion, including over Rs500 billion for school education.
The health budget could increase to around Rs420 billion, supporting upgrades to public hospitals, procurement of medicines, acquisition of modern medical equipment, and new healthcare initiatives.
Public Sector Salaries and Pensions
The government is considering a 10% salary increase for public sector employees, with pensions potentially rising 5-10%. Additionally, a proposal to raise the minimum wage in Punjab is expected to be part of the budget package.
Welfare and Youth Initiatives
Large allocations are expected for flagship welfare programs launched by Chief Minister Maryam Nawaz Sharif, including the Laptop Scheme, Asaan Karobar Programme, and Green Tractor Scheme. Youth employment and skill development initiatives will also see expanded funding under the Suthra Punjab Programme.
Infrastructure and Agriculture Focus
Infrastructure development remains a major priority, with investments in roads, bridges, mass transit systems, and clean drinking water projects.
The agriculture sector will benefit from farmer support packages, agricultural subsidies, solarisation of tube wells, modern seed programs, and incentives to boost wheat and cotton production.
Fiscal Discipline and Local Government Support
Up to Rs850 billion may be allocated to local governments and district-level development projects. The provincial government is expected to maintain a fiscal surplus between Rs700 billion and Rs850 billion in line with IMF commitments. More than Rs500 billion is likely earmarked for debt servicing and pension obligations. Meanwhile, austerity measures have been initiated during the budget preparation process.
