Punjab budget for FY2026-27 proposed at Rs5.13 trillion

The Punjab government has finalised the broad outline of its budget for the financial year 2026-27, with total outlay proposed at Rs5.131 trillion, reported 24NewsHD TV channel Monday.

According to budget details obtained by 24NewsHD, Punjab will provide a financial concession of Rs570 billion to the federal government, enabling the province to meet its fiscal deficit requirements and IMF-related targets. 

Punjab is expected to receive Rs3.793 trillion from the divisible pool under the National Finance Commission (NFC) Award, while provincial revenues are projected at Rs1.330 trillion.

The budget proposes allocating Rs650 billion for government employees' salaries and Rs505.8 billion for pensions.

A sum of Rs800 billion has been proposed for the Punjab Finance Commission, while Rs25 billion is expected to be allocated for social security programmes.

The government has also proposed Rs150 billion for the Clean Punjab Programme.

According to the budget framework, Rs580.2 billion has been recommended for operational expenditures, while Rs221.9 billion will be set aside for investments in other programmes.

An allocation of Rs54 billion has been proposed for projects being implemented with external assistance.

Sources said Rs570 billion has also been earmarked for other development and capital expenditures.

The province’s total expenditures are estimated at Rs3.569 trillion. After meeting provincial expenses, Punjab is expected to have a development and fiscal space of Rs1.562 trillion.

Sources said the increase in salaries of government employees in Punjab will be in line with the decision to be announced by the federal government in its budget.