Punjab Government Finalizes Budget Framework for FY 2026–27

Lahore (Qudrat Daily) – The Punjab government has finalized the framework of the budget for the fiscal year 2026–27, setting the total size of the provincial budget at Rs 5,131 billion.

According to official sources, Punjab will provide Rs 570 billion in fiscal relief to the federal government to help meet IMF targets. Under the National Finance Commission (NFC) Award, the province is expected to receive Rs 3,793.70 billion from divisible tax revenues.

Provincial own-source revenue is estimated at Rs 1,330 billion for the upcoming fiscal year.

The budget allocates Rs 650 billion for salaries and Rs 505.80 billion for pensions. A proposed Rs 800 billion has been earmarked for the Punjab Finance Commission.

For social protection, Rs 25 billion has been allocated, while Rs 150 billion has been proposed for the “Suthra Punjab” program.

Operational expenditures are projected at Rs 580.20 billion, while Rs 221.90 billion is expected to be reserved for investment-related programs. Additionally, Rs 54 billion has been suggested for foreign-assisted development projects, and Rs 570 billion for other development and capital expenditures.

Total provincial expenditures are estimated at Rs 3,569.60 billion, leaving a fiscal and development space of Rs 1,562.20 billion after expenditures.

Officials confirmed that any increase in government employees’ salaries will be made in line with the federal government’s decision.