Education, health and infrastructure receive major allocations in pro-growth budget
LAHORE, June 16, 2026 — The Punjab government on Tuesday unveiled a Rs5.903 trillion budget for fiscal year 2026-27, increasing overall spending by 10.7 percent from the previous year and allocating higher funds for development, education, healthcare and public welfare programmes.
Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented the budget in the Punjab Assembly after it was approved by the provincial cabinet. The budget is the third financial plan introduced under the administration of Chief Minister Maryam Nawaz Sharif.
Officials described the budget as a pro-people fiscal package focused on sustainable development, economic growth and targeted relief measures.
Development Spending Increased
The provincial government allocated Rs752 billion for development projects in FY2026-27, reaffirming its commitment to infrastructure expansion and public sector investment.
Addressing the assembly, the finance minister said the government had implemented austerity measures in line with federal guidelines while protecting key development priorities.
“No compromise has been made on Punjab’s development agenda,” he said.
Higher NFC Transfers Expected
According to budget documents, Punjab is projected to receive Rs4.39 trillion under the National Finance Commission (NFC) Award during FY2026-27, an increase of 8.1 percent compared with the previous fiscal year.
The minister said the province contributed Rs546 billion to the federal government and facilitated employment opportunities for more than 400,000 people.
Education Receives Major Allocation
The education sector received Rs750 billion, accounting for around 15 percent of the total provincial budget.
Key initiatives include:
Chief Minister Punjab Laptop Programme
Distribution of 110,000 laptops to students
Honhaar Scholarship Programme
School Meal Programme with an allocation of Rs15 billion
The government said these initiatives are intended to improve educational access and enhance student support across the province.
Health Sector Gets Over Rs500 Billion
Punjab allocated Rs500.62 billion for healthcare in FY2026-27.
Major projects include Rs20 billion for the Nawaz Sharif Institute of Cancer Treatment and funding for the establishment and expansion of Maryam Nawaz Health Clinics across Punjab.
Salaries and Pensions Increased
The provincial government proposed a 7 percent increase in salaries for public sector employees and a 3.5 percent increase in pensions.
Budget allocations include:
Rs650 billion for salaries
Rs505.8 billion for pensions
Rs900 billion for the Punjab Finance Commission
Transport, Police and Judiciary Allocations
The budget also includes substantial funding for public services and governance:
Transport sector: Rs78.5 billion
Police department: Rs12.88 billion
Judiciary: Rs3 billion
Investment initiatives: Rs221.9 billion
Focus on Public Welfare
Earlier, Chief Minister Maryam Nawaz Sharif chaired the provincial cabinet meeting that approved the budget before its presentation.
She said the government remained committed to public welfare despite challenges arising from reduced NFC resources.
“Despite the reduction in the NFC share, we are determined to provide maximum relief to the people of Punjab. There will be no compromise on public welfare, development projects and the journey towards prosperity,” she said.
The budget will now be debated in the Punjab Assembly before being put to a vote for final approval.
