ISLAMABAD: The provincial government in Pakistan’s richest Punjab province unveiled a Rs5.9 trillion ($21.2 billion) budget for fiscal year 2026-27 on Tuesday, with the finance minister saying it provides “maximum” relief to the public, state media reported.
Provincial governments present their budgets days after Pakistan’s federal government unveils its budget for the upcoming fiscal year.
Pakistan’s federal government presented the annual FY27 budget in the National Assembly last week. The Rs18.77 trillion ($67.42 billion) budget raised defense spending and set ambitious revenue targets, as Pakistan eyes sustainable economic growth under an International Monetary Fund $7 billion loan program.
Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented the budget for Pakistan’s most populous Punjab province. He said the government’s current expenditures were estimated at Rs1.9 trillion ($6.8 billion).
“Punjab Government presented a pro-people budget for the next financial year, with a total outlay of Rs5,903 billion and 460 million rupees in the Assembly today,” state broadcaster Radio Pakistan reported.
It highlighted that the Punjab government proposed a seven percent increase in the salaries of government employees and a 3.5 percent increase in the pensions of retired employees.
The report further said that Rs803.8 billion ($2.89 billion) have been allocated for local government institutions under the Provincial Finance Commission award.
Services delivery expenditures were estimated at Rs783.6 billion ($2.81 billion) while capital expenditures stood at Rs679.1 billion ($2.4 billion).
The province also allocated $8.98 million for women development, $119.25 million for health and population development projects.
Punjab Chief Minister Maryam Nawaz was present during the budget session. Radio Pakistan said Nawaz and her cabinet approved the budget in a meeting before it was presented in the assembly.
“Addressing the cabinet meeting, she said the government had made every possible effort to provide maximum relief to the people and minimize their financial burden,” it added.
The report quoted Nawaz as saying that the budget was prepared without imposing any new taxes on the masses and with a focus on public welfare, development and prosperity.
