LAHORE — Punjab government unveiled its tax-free budget for the fiscal year 2026–27 during the 43rd session of the Punjab Assembly, with Finance Minister Mian Mujtaba Shuja-ur-Rehman presenting a comprehensive financial plan exceeding Rs5.85 trillion amid strict security arrangements and expected opposition protests.
The budget session, convened by the provincial governor, also included the presentation of key financial documents such as the annual financial statement for FY2026–27, the revised budget estimates for FY2025–26, the Punjab Finance Bill 2026, proposed amendments to Sections 5 and 76 of the Punjab Sales Tax on Services Act 2012, and the province’s Fiscal Risk Statement.
According to official projections, Punjab is expected to receive approximately Rs4.4 trillion under the National Finance Commission (NFC) Award, while provincial revenue collection is estimated at around Rs1 trillion. The overall fiscal outlay reflects continued reliance on federal transfers alongside efforts to strengthen domestic revenue streams.
On the expenditure side, the budget outlines significant allocations across key sectors. Development spending has been set at over Rs700 billion, while the Punjab Finance Commission is allocated approximately Rs800 billion. Salaries for government employees account for Rs650 billion, and pension payments are estimated at Rs505 billion. Government employees are also expected to receive salary increases in line with federal government adjustments.
The Annual Development Programme (ADP) includes 3,560 development schemes, with Rs493.25 billion earmarked for ongoing projects and Rs258.75 billion for new initiatives. The scale of the ADP reflects the government’s continued focus on infrastructure expansion and public service delivery.
Among the major projects highlighted in the budget are the establishment of the Kulsoom Nawaz Cancer Hospital in Dera Ghazi Khan, expansion of the Chief Minister’s Laptop Programme, and continued funding for flagship initiatives such as the Kisan Card, Livestock Card, and Parwaaz Card International Placement Programme. The budget also proposes the establishment of the Mian Nawaz Sharif University of Engineering and Technology and the Shehbaz Sharif Sports Complex.
Security has been significantly tightened around the Punjab Assembly in anticipation of possible opposition demonstrations during the budget session. Law enforcement agencies have been deployed to maintain order as the province enters a politically sensitive financial session.
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