LAHORE: The Punjab government has finalized the broad contours of its budget for the fiscal year 2026-27, with the total budget outlay proposed at Rs5.131 trillion.
The budget indicates the provincial government’s efforts to maintain fiscal stability while continuing development initiatives and social welfare programs.
Punjab is expected to provide a fiscal adjustment of Rs570 billion to the federal government in order to help meet targets agreed with the International Monetary Fund (IMF).
The province is projected to receive Rs3.793 trillion from the divisible pool of federal taxes.
The approval of the provincial development budget has reportedly been deferred for one day, as the meeting of the National Economic Council (NEC) is expected to take place tomorrow.
In addition, Rs25 billion has been earmarked for social protection initiatives, while Rs150 billion is proposed for the “Suthra Punjab” program aimed at improving cleanliness and public services across the province.
Furthermore, Rs54 billion has been proposed for projects financed through external assistance, while another Rs570 billion is expected to be allocated for other development and capital expenditures.
In this sense, Punjab’s total expenditures are projected to reach Rs3.569 trillion. After meeting provincial expenditures, the government expects to retain a fiscal and development space of approximately Rs1.562 trillion for future initiatives and investments.
Meanwhile, sources indicated that an increase in salaries for government employees will be implemented in line with the decision taken by the federal government.
There are also reports that concessional General Sales Tax (GST) rates on several items may be withdrawn, raising concerns about a possible increase in consumer prices.
The Punjab government is expected to formally present the budget in the coming days, outlining its strategy for economic management, development spending, and public welfare during the next fiscal year.
