In a highly charged session of the Punjab Assembly in Lahore, Finance Minister Mujtaba Shuja-ur-Rehman unveiled the province’s Rs5.85 trillion budget for the fiscal year 2026–27. The presentation was marked by intense opposition protests, with lawmakers vocally disrupting proceedings and gathering near the speaker’s podium to express dissent.
Despite the uproar and continuous anti-government slogans, the finance minister persisted in delivering the budget speech, which aligns with the federal government’s macroeconomic framework. Earlier, the provincial cabinet, led by Chief Minister Maryam Nawaz Sharif, had formally reviewed and approved the budget draft, paving the way for its tabling in the assembly.
The proposed budget sets total expenditures at over Rs5,850 billion, with a development outlay of Rs752 billion dedicated to infrastructure projects, social sector programs, and regional development initiatives. The government has planned a seven percent increase in salaries and pensions, while recalibrating development spending to accommodate fiscal contributions already extended to the federal government.
Punjab has provided Rs570 billion in financial relief to the federation, which has consequently reduced the province’s development budget to 47 percent of its potential scale. Revenue estimates include Rs3,793.7 billion from the National Finance Commission award and Rs1,330 billion from provincial taxes. Total expenditures are projected at Rs3,569.6 billion, leaving a fiscal space of approximately Rs1,562.2 billion after mandatory spending.
Key budget allocations focus heavily on social sectors, with Rs900 billion earmarked for education and Rs680 billion for health services. This includes Rs100 billion for free medicines and specific funding for cancer and stroke treatments. Social protection programs are supported with Rs25 billion for welfare initiatives, Rs35 billion for the Ramazan package, and Rs80 billion in subsidies. Additional allocations include Rs10 billion for the Kisan Card, and Rs3 billion for the Himmat Card and Minority Card schemes.
The government has also set aside over Rs200 billion for ongoing initiatives led by the chief minister and Rs150 billion for the “Suthra Punjab” cleanliness campaign. Student welfare programs receive significant funding, including scholarships, laptops, electric scooters, bicycles, and the Honhaar Scholarship Programme with an allocation exceeding Rs20 billion, alongside Rs7 billion for the “Parwaz Card” scheme. University grants are projected at Rs18 billion, and Rs800 billion is designated for the Punjab Finance Commission.
Operational costs are estimated at Rs580.2 billion, with Rs221.9 billion allocated for investment projects and Rs54 billion for externally funded initiatives. The government prioritizes the completion of ongoing development projects and plans to adjust government employee salaries in line with federal decisions. Efforts to raise minimum wages for laborers were also discussed as part of broader social protection measures.
The cabinet emphasized enhancing service delivery, maintaining fiscal discipline, and continuing key development efforts under the chief minister’s agenda. Revenue targets were revised upward across several provincial streams, with an estimated Rs1,229 billion expected from provincial income sources and Rs748 billion from provincial taxes.
Revised projections for the current year indicate a Rs410 billion increase in revenue. The Punjab Revenue Authority’s target rose from Rs370 billion to Rs528 billion, while the Board of Revenue is expected to generate between Rs70 billion and Rs86.2 billion. The Excise and Taxation Department’s target increased from Rs77.2 billion to Rs124 billion. Other provincial taxes are forecasted to contribute Rs10 billion, with Rs80 billion targeted from the cash management fund. Non-tax provincial revenues are projected at Rs381 billion, and total non-provincial receipts amount to Rs441 billion.
