Punjab Finalizes FY2026-27 Budget Framework with Total Outlay of Rs5.13 Trillion

Islamabad – The Punjab government has finalized the broad framework of its budget for the fiscal year 2026-27, with the total budget size proposed at Rs5.131 trillion, according to official sources.

Sources said Punjab will provide a fiscal adjustment of Rs570 billion to the federal government to help meet targets agreed with the International Monetary Fund (IMF).

Under the National Finance Commission (NFC) award, Punjab is expected to receive Rs3.793 trillion from the divisible tax pool, while provincial revenues are projected at Rs1.33 trillion.

The budget proposes an allocation of Rs650 billion for salaries of government employees and Rs505.8 billion for pensions. Any increase in salaries and pensions will be in line with the federal government’s final decision.

For local government and regional development, Rs800 billion has been proposed for the Punjab Finance Commission. The government also plans to allocate Rs25 billion for social protection initiatives and Rs150 billion for the Suthra Punjab Program.

Operational expenditures are estimated at Rs580.2 billion, while Rs221.9 billion has been proposed for other investment and development-related programs.

Sources further stated that Rs54 billion has been recommended for externally funded development projects, while an additional Rs570 billion is proposed for other development and capital expenditures.

Punjab’s total expenditures are projected at Rs3.569 trillion. After meeting provincial expenses, the government expects to have a development and fiscal space of approximately Rs1.562 trillion available for future investments and strategic initiatives.

The budget is expected to be formally presented in the Punjab Assembly in the coming days.