LAHORE – Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman on Tuesday unveiled a Rs5.9 trillion budget for fiscal year 2026-27 in the Punjab Assembly, featuring a sharp 39.35 per cent cut in the Annual Development Programme (ADP), which has been reduced from Rs1.24 trillion in the previous year to Rs752 billion.
The budget was presented amid noisy opposition protests, with lawmakers from the opposition benches gathering in front of the Speaker’s dais and raising slogans against inflation and the Punjab government.
The budget, the third presented by the Pakistan Muslim League-Nawaz (PML-N) government led by Chief Minister Maryam Nawaz Sharif, was unveiled during a session attended by the chief minister and members from both sides of the aisle.
Throughout the finance minister’s speech, opposition lawmakers staged a protest on the assembly floor, carrying placards highlighting rising inflation and economic hardships faced by the public. Several opposition members also displayed pictures of Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan while chanting slogans against the government.
A notable feature of the session was the placement of a large portrait of PML-N supremo Mian Nawaz Sharif beside the desk from where the finance minister delivered his budget speech. The portrait remained prominently visible throughout the proceedings.
Presenting the third budget of the incumbent government, Mian Mujtaba Shuja-ur-Rehman described the financial plan as a people-centric budget focused on economic growth, social welfare, employment generation and improved public services. The total budget outlay for 2026-27 has been proposed at Rs5.903 trillion compared to approximately Rs5.33 trillion in the previous fiscal year, reflecting an increase of about 10.7 per cent.
However, the Punjab government has reduced its Annual Development Programme (ADP) allocation by Rs488 billion, marking a decline of approximately 39.35 per cent compared to the previous fiscal year. According to official budget documents and statements, the development outlay has been brought down from Rs1,240 billion in 2025-26 to Rs752 billion in the 2026-27 budget.
The government has attributed this significant reduction in development spending to an increased contribution towards the federal divisible pool, stating that Punjab has effectively “surrendered” around Rs600 billion of its share in favour of national fiscal requirements. Officials maintain that the adjustment reflects broader efforts to support macroeconomic stability and strengthen intergovernmental fiscal commitments, even as it results in a scaled-back provincial development programme.
The government has set an ambitious target to increase its own revenue base. The Punjab Revenue Authority has been tasked with improving collections, while tax net expansion and digitisation of the revenue system have been identified as key reform areas.
The Punjab government has projected total revenues of Rs1.2 trillion for the fiscal year 2026-27, while current and capital expenditures are estimated at Rs679 billion.
One of the most significant increases has been proposed for the health sector. The allocation has been raised from Rs424.3 billion in 2025-26 to Rs500.6 billion in 2026-27, representing an increase of approximately 18 per cent. The health budget includes funding for the Nawaz Sharif Institute of Cancer Treatment and Research, expansion of cardiac healthcare facilities, strengthening of the Punjab Institute of Mental Health, upgrading Nishtar Hospital Multan and establishing Maryam Nawaz Health Clinics.
The education sector has once again been placed at the centre of the provincial spending plan. The government has proposed Rs686 billion for the education sector, reflecting a significant increase aimed at improving school infrastructure, access, and quality of learning. The education allocation represents a 15 per cent increase over the current fiscal year’s budget, while health spending is set to rise by 10 per cent.
In the health sector, Rs20 billion has been earmarked for the under-construction Nawaz Sharif Institute of Cancer Treatment and Research, while Rs169 billion has been allocated for the establishment of the Nawaz Sharif Medical District.
The government has also proposed Rs1.75 billion for Neuro Cath Labs under the Stroke Initiative and Rs5 billion for emergency healthcare services. In addition, Rs15.21 billion has been allocated for a cancer hospital in Dera Ghazi Khan and Rs23.37 billion for the construction of a children’s hospital in Bahawalpur. To strengthen special education, Rs1.9 billion has been set aside for the establishment and development of autism schools in every division of the province.
In the education sector, the budget proposes Rs6.9 billion for the establishment of IT laboratories in colleges and Rs40 billion for the Maryam Nawaz Sharif Centre of Academic Leadership, Nawaz Sharif Centres of Excellence and STEAM laboratory programmes.
For public safety and law enforcement, the government has proposed an allocation of Rs252 billion. The budget includes Rs2.2 billion for the construction of police stations and police posts in riverine areas, along with Rs14 billion for the establishment of crime scene units in 28 districts.
The government has also earmarked substantial resources for transport infrastructure. To support ongoing mass transit projects in Gujranwala and Faisalabad, Rs26.6 billion has been proposed. The budget further allocates Rs168 billion for an electric bus programme and Rs10 billion for regional railway projects.
The government has proposed a 7 per cent increase in salaries for provincial government employees, raising total salary expenditures to Rs639 billion. Pensions for retired employees are proposed to increase by 3.5 per cent, with total pension expenditures projected at Rs500 billion.
Funds have also been earmarked for CT scan and MRI facilities, cath labs, neuro-cath labs, stroke treatment programmes and improvements in primary healthcare services.
While delivering the budget speech, the finance minister said the financial plan had been prepared in line with public needs and development priorities, adding that the government was committed to steering Punjab towards economic stability and sustainable growth.
The budget includes continuation and expansion of key youth-focused programmes, including the Honhaar Scholarship Programme and the Chief Minister Laptop Scheme. The government has allocated Rs12 billion for the laptop scheme.
The School Meal Programme is also set to be extended to additional districts, while IT laboratories will be established in colleges to promote digital learning. Special education initiatives, including the establishment and expansion of autism schools, have also been announced.
A major highlight of the budget is the government’s push towards digital governance. The Finance Minister announced plans for the expansion of e-governance and e-government systems across the province. A proposal has also been introduced to establish an Artificial Intelligence Office in Punjab, aimed at integrating emerging technologies into public service delivery.
The budget also includes initiatives related to flood protection and climate change mitigation, reflecting increasing environmental challenges faced by the province. Public-private partnership projects will be further promoted to attract investment and improve service delivery.
The finance minister said the budget aims to promote sustainable economic development, attract investment, strengthen provincial revenues and create employment opportunities while maintaining fiscal discipline. The “Clean Punjab” initiative will be expanded further, while new job creation and skills development programmes for youth have been included in the budget framework.
Agriculture sector support, business-friendly policies, and facilitation of investment have also been highlighted as key priorities. The finance minister said the budget reflects a broader vision to transform Punjab into a digitally enabled, economically strong and development-oriented province. He said fiscal discipline, improved governance, and revenue enhancement would remain central pillars of the government’s strategy.
The minister described the budget as “pro-people and development-oriented”, claiming it will provide relief to citizens while accelerating economic growth across the province.
Education and human capital development remain key priorities. The budget includes allocations for IT laboratories in colleges, STEAM laboratories, Nawaz Sharif Centres of Excellence, autism schools and initiatives aimed at improving access to quality education across the province.
The government has also allocated funds for youth employment and skills development programmes, including the Chief Minister Skills Development Programme, Skilled Punjab Programme, overseas employment initiatives, business process outsourcing (BPO) training and vocational programmes for emerging industries.
Social protection continues to occupy a central place in the government’s agenda. The budget provides resources for the Punjab Socio-Economic Registry (PSER), Ramzan Nigehban Package, Maryam Nawaz Social Security Ration Card and Himmat Card programmes designed to support low-income and vulnerable households.
Women’s economic empowerment programmes have also received funding, including initiatives focused on entrepreneurship, rural livelihoods, vocational training and increased participation of women in economic activities.
The finance minister said the government would continue efforts to promote business, industry and investment through industrial development projects, governance reforms and public-private partnerships. He added that broadening the tax base, increasing provincial revenues and strengthening financial management would remain key fiscal priorities during the next financial year.
