Punjab unveils Rs5.9 trillion Budget with focus on development, education and health

LAHORE: Punjab Finance Minister Mian Mujtaba Shujaur Rehman on Tuesday presented a Rs5.9 trillion provincial budget for the fiscal year 2026-27 after its approval by the provincial cabinet, describing it as a people-friendly budget focused on development, public welfare and economic growth.

The budget session was attended by Chief Minister Maryam Nawaz Sharif, provincial ministers and members of the Punjab Assembly.

According to the budget speech, the proposed outlay is 10.7 per cent higher than the budget for the outgoing fiscal year. The Punjab government has projected total revenues of Rs1.2 trillion for 2026-27, while current and capital expenditures have been estimated at Rs679 billion.

The government has earmarked Rs752 billion for development projects, with education and health emerging as key priorities. An allocation of Rs750 billion has been proposed for the education sector, representing a 15 per cent increase over the current fiscal year, while Rs500 billion has been allocated for health, reflecting a 10 per cent increase.

The provincial government has proposed a seven per cent increase in salaries for government employees, raising total salary expenditure to Rs639 billion. Pensions for retired employees are proposed to increase by 3.5 per cent, taking pension-related spending to Rs500 billion.

In the health sector, Rs20 billion has been allocated for the under-construction Nawaz Sharif Institute of Cancer Treatment and Research. The government has also proposed Rs169 billion for the establishment of the Nawaz Sharif Medical District.

Additional allocations include Rs15.21 billion for a cancer hospital in Dera Ghazi Khan, Rs23.37 billion for a children’s hospital in Bahawalpur, Rs1.75 billion for Neuro Cath Labs under the provincial Stroke Initiative and Rs5 billion for emergency health services.

The budget also includes Rs1.9 billion for the construction and development of autism schools in every division of Punjab, reflecting the government’s focus on inclusive education.

To promote modern learning and technological advancement, Rs6.9 billion has been allocated for the establishment of information technology laboratories in colleges across the province. Furthermore, Rs40 billion has been proposed for the Maryam Nawaz Sharif Centre of Academic Leadership, the Nawaz Sharif Centre of Excellence and STEAM laboratory programmes.

For maintaining law and order, the government has allocated Rs252 billion. This includes Rs2.2 billion for the construction of police stations and police posts in riverine areas, while Rs14 billion has been earmarked for establishing crime scene units in 28 districts.

The transport sector also received significant attention in the proposed budget. To support ongoing mass transit projects in Gujranwala and Faisalabad, the government has allocated Rs26.6 billion.

A major allocation of Rs168 billion has been proposed for the electric buses programme aimed at improving public transportation and reducing environmental pollution. Additionally, Rs10 billion has been earmarked for the development of regional railway projects.

The Punjab government described the budget as a comprehensive roadmap for economic growth, improved public services and infrastructure development, with a strong emphasis on healthcare, education, transportation and public welfare.