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Rs 76 billion increase proposed in provincial development budgets for FY 2026-27

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Budget 2026, salary increase

In the new fiscal year, Punjab has surpassed all federating units, including the federal government, with a development budget of Rs 1,450 billion.


For the new fiscal year 2026-27, a proposal has been made to increase the total annual development budget of all four provinces by Rs 76 billion, while the provinces will collectively spend Rs 3,138 billion on development projects.


According to documents, Rs 2,478 billion of the Provincial Annual Development Programmes will be provided from local resources, while Rs 660 billion will come through foreign assistance.


In the new fiscal year, Punjab, with a development budget of Rs 1,450 billion, has surpassed all federating units, including the federal government. Punjab will spend Rs 95 billion more on development expenditures compared to the current fiscal year. The province will spend Rs 1,306 billion from its local resources and Rs 144 billion under foreign assistance.


According to the documents, Sindh has proposed a development budget of Rs 816 billion, of which Rs 520 billion will come from local resources and Rs 296 billion from foreign assistance.


The Khyber Pakhtunkhwa government has proposed allocating Rs 564 billion for development projects. Of this amount, Rs 377 billion will come from local resources and Rs 187 billion from foreign assistance.


The Balochistan government has proposed a development budget of Rs 308 billion for the new fiscal year, including Rs 275 billion from local resources and Rs 33 billion from foreign assistance.


Thus, in fiscal year 2026-27, all four provinces will collectively spend Rs 3,138 billion on development projects, which is Rs 76 billion more than the current fiscal year.

Also Read: Budget 2026-27: Major tax relief likely for real estate sector

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