LAHORE: The Punjab government has finalized the broad contours of its budget for the fiscal year 2026–27, with the total size expected to reach Rs5,131 billion, according to official sources.
Details obtained by Dunya News reveal that the provincial government aims to align fiscal planning with federal requirements, including International Monetary Fund (IMF) targets and overall macroeconomic stability.
Under the National Finance Commission (NFC) award, Punjab is projected to receive Rs3,793.70 billion from divisible federal revenues. In addition, the province expects Rs1,330 billion from its own revenue generation sources.
Major allocations
According to the budget framework, significant expenditures include:
Rs650 billion for government salaries
Rs505.8 billion for pensions
Rs800 billion proposed for Punjab Finance Commission transfers
Rs25 billion for social protection programmes
Rs150 billion for the “Suthra Punjab” cleanliness initiative
Operational expenditures are estimated at Rs580.2 billion, while Rs221.9 billion is earmarked for investment-related programmes.
For externally assisted development projects, the province has proposed Rs54 billion, while Rs570 billion is expected to be allocated for other development and capital expenditures.
Total spending and fiscal space
Overall provincial expenditures are projected at Rs3,569.6 billion, leaving an estimated Rs1,562.2 billion fiscal and development space after routine spending.
Officials also confirmed that salary increases for government employees will follow the federal government’s decision in the upcoming budget announcement.
