The Punjab cabinet, under the leadership of Chief Minister Maryam Nawaz Sharif, approved the draft budget for the fiscal year 2026–27 on Tuesday, paving the way for its formal presentation. The session included Senior Provincial Minister Maryam Aurangzeb, Finance Minister Mujtaba Shuja-ur-Rehman, Chief Secretary Zahid Zaman, Planning & Development Board Chairman Dr Naeem Rauf, Finance Secretary Mujahid Sherdil, and other senior officials.
Officials from the Planning & Development Department, such as Secretary Rafaqat Ali Wasan and Industries Secretary Syed Numan Masood, also took part in the meeting. The proposed total budget size for Punjab exceeds Rs 5,850 billion, with a development outlay set at Rs 752 billion.
The government has recommended a seven percent increase in salaries and pensions. Development expenditure has been adjusted to accommodate fiscal space for the federal government, following Punjab’s provision of Rs 570 billion in financial relief to the federation. This assistance has led to the province’s development budget being reduced to 47 percent of its potential capacity.
Receipts from the National Finance Commission (NFC) award are projected at Rs 3,793.7 billion, while provincial tax revenues are expected to reach Rs 1,330 billion. Total expenditures are estimated at Rs 3,569.6 billion, leaving approximately Rs 1,562.2 billion in fiscal space after accounting for mandatory spending.
Significant allocations include Rs 900 billion for education and Rs 680 billion for health, which covers Rs 100 billion dedicated to free medicines and separate funding for cancer and stroke treatments. Social protection programs have been allocated Rs 25 billion, with Rs 35 billion set aside for the Ramazan package, Rs 80 billion for subsidies, and specific funds for the Kisan Card (Rs 10 billion), Himmat Card, and Minority Card schemes (Rs 3 billion).
Additionally, over Rs 200 billion has been assigned to ongoing initiatives led by the chief minister, alongside Rs 150 billion allocated for the “Suthra Punjab” cleanliness campaign. Student welfare is also prioritized, with provisions for scholarships, laptops, electric scooters, bicycles, and the Honhaar Scholarship Programme valued at more than Rs 20 billion, as well as Rs 7 billion for the “Parwaz Card” scheme. University grants are estimated at Rs 18 billion, while Rs 800 billion is proposed for the Punjab Finance Commission.
Operational expenses are projected at Rs 580.2 billion, with Rs 221.9 billion earmarked for investment programs and Rs 54 billion for externally aided projects. Officials emphasized that completing ongoing development projects remains a primary focus, and salary adjustments for government employees will align with federal government decisions. The cabinet also reviewed plans to raise minimum wages for laborers as part of broader social protection efforts.
Emphasizing improved service delivery, fiscal discipline, and the continuation of key development initiatives under the chief minister’s agenda, the cabinet also revised revenue targets upward across major provincial streams. Punjab aims to generate Rs 1,229 billion from provincial income sources, with tax collection from provincial levies projected at Rs 748 billion.
Revised estimates for the current year indicate a Rs 410 billion increase in revenue projections. The Punjab Revenue Authority’s target has been increased from Rs 370 billion to Rs 528 billion, while the Board of Revenue is expected to collect between Rs 70 billion and Rs 86.2 billion. The Excise and Taxation Department’s revenue goal has been raised from Rs 77.2 billion to Rs 124 billion. Other provincial taxes are anticipated to contribute Rs 10 billion, with Rs 80 billion targeted from the cash management fund. Non-tax provincial revenues are projected at Rs 381 billion, and overall non-provincial receipts are estimated at Rs 441 billion.
