Web Desk: The Punjab Cabinet on Tuesday approved the province’s proposed budget for fiscal year 2026-27, setting the stage for a spending plan exceeding Rs5.85 trillion, with a strong focus on development projects, education, healthcare and social welfare programs.
Chief Minister Maryam Nawaz chaired the cabinet meeting, which reviewed and endorsed the budget framework ahead of its formal presentation.
According to official sources, the provincial government has proposed a total budget outlay of more than Rs5.85 trillion, including a development budget of Rs752 billion aimed at sustaining infrastructure growth and completing ongoing public welfare projects.
The budget also recommends a 7% increase in salaries and pensions for government employees. However, officials said the final decision would align with the federal government’s announcement regarding public sector pay and pension adjustments.
Meanwhile, the government has prioritized the completion of development initiatives launched under Chief Minister Maryam Nawaz, with more than Rs200 billion expected to be allocated for these projects.
Punjab expects to receive approximately Rs3.79 trillion from the federal divisible pool under the National Finance Commission (NFC) award, while provincial revenue collection is projected to reach Rs1.33 trillion during the next fiscal year.
Sources said the provincial government has already extended a fiscal concession of Rs570 billion to the federal government, a factor that has affected the overall size of the development budget.
Despite fiscal constraints, officials said the province aims to maintain spending on essential public services and welfare programs while preserving financial stability.
Education emerged as one of the largest beneficiaries in the proposed budget, with more than Rs900 billion earmarked for the sector.
The government plans to continue several youth-focused initiatives, including laptop distribution, electric scooter schemes and bicycle programs for students. In addition, more than Rs20 billion has been proposed for the Honhaar Scholarship Programme to support higher education opportunities.
Healthcare is also set to receive significant funding, with allocations exceeding Rs680 billion. The budget proposes Rs100 billion for the provision of free medicines in public hospitals and healthcare facilities.
Furthermore, special funds are expected to be reserved for medicines and treatment support for cancer and stroke patients as part of efforts to strengthen public healthcare services.
Budget documents indicate that Rs650 billion has been proposed for salaries of government employees, while pension expenditures are estimated at nearly Rs506 billion.
The government also plans to allocate Rs800 billion to the Punjab Finance Commission for transfers to local governments and district administrations.
In the social protection sector, Rs25 billion has been proposed for welfare initiatives, while the Suthra Punjab Programme is expected to receive Rs150 billion. Subsidy allocations are projected to exceed Rs80 billion.
The budget includes funding for several targeted assistance schemes designed to support farmers, workers, students and low-income households.
According to sources, Rs10 billion has been proposed for the Kisan Card programme, while Rs7 billion has been earmarked for the Parwaaz Card initiative. The Himmat Card and Minority Card programmes are expected to receive a combined allocation of Rs3 billion.
In addition, the government is likely to allocate Rs35 billion for a Ramadan relief package and Rs18 billion in grants for public universities.
Officials said the government is also considering an increase in the minimum monthly wage for workers, although details are expected to be finalized during the budget presentation process.
The cabinet meeting was attended by Senior Provincial Minister Maryam Aurangzeb, Finance Minister Mujtaba Shuja-ur-Rehman, Chief Secretary Zahid Akhtar Zaman and other senior government officials.
The proposed budget reflects the Punjab government’s emphasis on development spending, social protection and public service delivery as it seeks to sustain economic activity and expand support for key sectors during the next fiscal year.
