LAHORE (MNN); Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman on Tuesday presented a Rs5.9 trillion provincial budget for fiscal year 2026-27 after receiving formal approval from the provincial cabinet. The budget has been described by the government as a people-friendly financial plan aimed at promoting welfare, development and economic growth.
The budget session was attended by Chief Minister Maryam Nawaz Sharif, provincial ministers and members of the Punjab Assembly.
According to the budget speech, the proposed budget is 10.7 percent larger than the current fiscal year’s budget. The provincial government expects to generate total revenues of Rs1.2 trillion during the next financial year, while current and capital expenditures are estimated at Rs679 billion.
A major emphasis has been placed on development and social sectors. The government plans to spend Rs752 billion on development projects, Rs750 billion on education and Rs500 billion on health services. The education allocation reflects a 15 percent increase over the previous year, while health spending has been raised by 10 percent.
The government has proposed a seven percent increase in salaries for provincial employees, bringing total salary expenditures to Rs639 billion. Pension payments for retired employees are set to rise by 3.5 percent, with total pension spending estimated at Rs500 billion.
In the health sector, Rs20 billion has been earmarked for the under-construction Nawaz Sharif Institute of Cancer Treatment and Research, while Rs169 billion has been allocated for the establishment of the Nawaz Sharif Medical District. Additional allocations include Rs1.75 billion for Neuro Cath Labs under the Stroke Initiative, Rs5 billion for emergency services, Rs15.21 billion for a cancer hospital in Dera Ghazi Khan and Rs23.37 billion for a children’s hospital in Bahawalpur.
The government has also proposed Rs1.9 billion for the construction and development of autism schools in every division of Punjab and Rs6.9 billion for establishing information technology laboratories in colleges.
To strengthen educational standards, Rs40 billion has been allocated for the Maryam Nawaz Sharif Centre of Academic Leadership, the Nawaz Sharif Centre of Excellence and STEAM laboratory programmes.
For public safety and law enforcement, the government has proposed Rs252 billion. The budget includes Rs2.2 billion for police stations and posts in riverine areas and Rs14 billion for the establishment of crime scene units in 28 districts.
The government also plans to continue investment in transport infrastructure. A total of Rs26.6 billion has been proposed for mass transit projects in Gujranwala and Faisalabad, while Rs168 billion has been allocated for an electric bus programme. Regional railway projects are expected to receive Rs10 billion.
Earlier in the day, Chief Minister Maryam Nawaz chaired the 35th provincial cabinet meeting, where the budget was formally approved. She stated that despite economic challenges and global uncertainties, the government had made every effort to provide relief to citizens and reduce financial pressures on the public.
She emphasized that the budget had been prepared without imposing any new taxes and was designed to promote public welfare, development and prosperity. Calling it a “budget of hope,” she said it aimed to deliver maximum relief through the province’s own resources.
The chief minister also directed the Punjab Revenue Authority to improve revenue collection and strengthen the province’s financial position. Expressing confidence in the government’s performance, she said the budget would fulfill public expectations and thanked cabinet members and officials for their collective efforts in preparing the financial plan.
