LAHORE: The Punjab government on Tuesday presented a Rs5.903 trillion budget for the 2026-27 fiscal year, announcing a 7 percent increase in salaries for government employees and a 3.5 percent rise in pensions while allocating significant funds for development projects and public services.
Punjab Finance Minister Mujtaba Shujaur Rehman presented the budget in the Punjab Assembly amid protests by opposition members, who chanted slogans and demanded the release of PTI founder Imran Khan. The minister delivered his speech with a portrait of PML-N President Nawaz Sharif displayed beside the podium.
The budget sets aside Rs2.638 trillion for the Annual Development Programme, accounting for nearly 47 percent of the total outlay. Current expenditures have been estimated at Rs1.962 trillion.
An allocation of Rs650 billion has been proposed for government salaries, while Rs505.8 billion has been earmarked for pension payments.
Education remains one of the government’s top priorities, receiving more than Rs900 billion in total allocations. Of this, Rs25.30 billion has been reserved for school education and Rs30.50 billion for higher education initiatives.
The provincial government has also proposed Rs5.50 billion for Sports and Youth Affairs, Rs4.30 billion for energy projects, Rs60 billion for agriculture, Rs9 billion for food safety and consumer protection measures, and Rs1.65 billion for commerce and investment.
According to the finance minister, the budget was formulated after consultations with representatives of industry, trade and other stakeholders. He said the financial plan seeks to maintain fiscal discipline while promoting economic growth, infrastructure expansion, digital governance, employment opportunities and improved public services across the province.
