Punjab budget likely to reach Rs6 trillion, with Rs1.45 trillion development outlay

The Punjab government is expected to present a budget of nearly Rs6 trillion for fiscal year 2026-27 on June 8, with development spending, infrastructure, digital transformation and public welfare among the main proposed priorities, government sources said.

As per reports, the provincial government has entered the final stage of budget preparations, with allocations being worked out for both urban and rural areas.

Sources said an initial development outlay of around Rs1.45 trillion is under consideration, which may rise to nearly Rs1.5 trillion if additional fiscal space becomes available.

Under proposals prepared by the Planning and Development Board, Rs980 billion may be allocated for the core development programme, Rs320 billion for other development schemes and Rs150 billion for foreign-assisted projects.

The education sector is expected to receive between Rs650 billion and Rs750 billion, including more than Rs500 billion for school education.

The health sector may get around Rs420 billion, with funds proposed for upgrading public hospitals, procuring medicines, buying modern medical equipment and supporting healthcare initiatives.

Infrastructure spending is also expected to remain part of the budget, with allocations proposed for roads, bridges, mass transit systems and clean drinking water projects.

The agriculture sector may receive support through farmer packages, subsidies, solarisation of tube wells, modern seed programmes and incentives for increasing wheat and cotton production.

Sources said up to Rs850 billion could be transferred to local governments and district-level development projects.

The budget is also expected to include allocations for Chief Minister Maryam Nawaz Sharif’s welfare initiatives, including the laptop scheme, Asaan Karobar programme and Green Tractor Scheme.

The government is also planning to expand the Suthra Punjab programme, along with youth employment and skills development initiatives.

For public sector employees, a 10% salary increase is under consideration, while pensions may be raised by 5% to 10%.

A proposal to increase the minimum wage in Punjab is also expected to be included in the budget package.

The provincial government is expected to maintain a fiscal surplus of Rs700 billion to Rs850 billion under IMF-related commitments.

More than Rs500 billion is likely to be earmarked for debt servicing and pension obligations.

Sources said austerity measures have also been initiated during the budget preparation process.