Rs5.9 trillion budget prioritises development, education and public welfare
LAHORE, June 16, 2026 — The Punjab government decides to increase salaries by 7 percent and pensions by 3.5 percent as part of its Rs5.903 trillion Budget 2026–27, unveiled on Tuesday with a strong focus on development spending, public welfare and economic stability.
The budget was presented in the Punjab Assembly by Finance Minister Mian Mujtaba Shuja-ur-Rehman after approval from the provincial cabinet. It marks the third financial plan under Chief Minister Maryam Nawaz Sharif’s administration.
Officials described the fiscal package as “pro-people”, combining development expansion with targeted relief measures despite ongoing financial constraints.
Salaries and Pensions Increased
Under the new proposals, the provincial government has allocated Rs650 billion for salaries and Rs505.8 billion for pensions.
The 7 percent salary increase and 3.5 percent pension hike are aimed at providing relief to public sector employees amid rising inflation.
The budget also includes Rs900 billion for the Punjab Finance Commission, reflecting efforts to strengthen fiscal coordination across the province.
Development Spending Raised to Rs752 Billion
Development expenditure has been increased to Rs752 billion, highlighting the government’s focus on infrastructure expansion, public service delivery and long-term investment.
The finance minister said austerity measures had been adopted in line with federal guidance, while ensuring development priorities remain protected.
“No compromise has been made on Punjab’s development agenda,” he said during his budget speech.
Education Receives Rs750 Billion Allocation
Education remains one of the largest spending areas, with Rs750 billion allocated—around 15 percent of total expenditure.
Key initiatives include:
Chief Minister Punjab Laptop Programme
Distribution of 110,000 laptops to students
Honhaar Scholarship Programme
Rs15 billion School Meal Programme
Officials said the measures aim to improve access to education and student welfare across the province.
Health Sector Gets Over Rs500 Billion
The health sector has been allocated Rs500.62 billion.
Major projects include funding for the Nawaz Sharif Institute of Cancer Treatment and expansion of Maryam Nawaz Health Clinics across Punjab.
NFC Transfers and Fiscal Position
Budget documents show Punjab is expected to receive Rs4.39 trillion under the National Finance Commission (NFC) Award in FY2026–27, an increase of 8.1 percent year-on-year.
Officials said the province contributed Rs546 billion to the federal government and supported employment generation for more than 400,000 people.
Transport, Police and Investment Allocations
Additional allocations include:
Transport: Rs78.5 billion
Police: Rs12.88 billion
Judiciary: Rs3 billion
Investment initiatives: Rs221.9 billion
Government Reaffirms Welfare Focus
Chief Minister Maryam Nawaz Sharif, who chaired the cabinet meeting approving the budget, said the government remained committed to public welfare despite reduced NFC resources.
“Despite the reduction in the NFC share, we are determined to provide maximum relief to the people of Punjab,” she said. “There will be no compromise on public welfare, development projects and the journey towards prosperity.”
The budget will now be debated in the Punjab Assembly before being put to a vote for final approval.
