LAHORE: The Punjab government has outlined its budget plan for the upcoming financial year 2026-27, with a total proposed expenditure of approximately Rs5.131 trillion.
According to details, Punjab plans to extend a financial support of Rs570 billion to the federal government to help meet its fiscal deficit targets and fulfill IMF commitments. The province is expected to receive Rs3.793 trillion from the divisible pool as per the latest National Finance Commission (NFC) Award, while provincial revenues are projected at Rs1.330 trillion.
The budget allocates Rs650 billion for civil servant salaries and Rs505.8 billion for pension payments. Additionally, Rs800 billion is designated for the Punjab Finance Commission’s activities, with Rs25 billion set aside for social security initiatives.
The government has proposed Rs150 billion for the Clean Punjab Program aimed at environmental and infrastructural improvements. Operational costs are estimated at Rs580.2 billion, while Rs221.9 billion will be utilized for other development projects and schemes.
Furthermore, Rs54 billion has been allocated for projects financed through external funding sources. An additional Rs570 billion is earmarked for other capital and development expenditures.
Total provincial expenditures are estimated at Rs3.569 trillion. After covering all expenses, Punjab is expected to retain a development and fiscal space of Rs1.562 trillion for future projects and investments.
Sources also indicated that salary increases for government employees in Punjab will align with the federal government’s upcoming budget decisions.
