Punjab Chief Minister Maryam Nawaz Sharif and her cabinet have presented a Rs5.34 trillion budget for the fiscal year 2026-27, touted as "people-friendly." However, many experts are struggling to determine which people it is friendly for. Finance Minister Mian Mujtaba Shujaur Rehman introduced the document in the assembly with the usual fanfare, but the slogans of relief and prosperity did not fully conceal the complicated story within the numbers.
There are certainly positives. No new taxes have been imposed for the third consecutive year. Government employee salaries have been increased by 7 per cent, and pensions by 3.5 per cent. Spending on education and health has also risen, by Rs750 billion and Rs500 billion, respectively. However, while the total budget outlay increased by 10.7 per cent to over Rs5.9 trillion, the Annual Development Programme (ADP) was slashed by almost 40 per cent, dropping from last year's Rs1.24 trillion to just Rs752 billion. Given Punjab's size, this spending is a pittance.
Even ignoring the Rs546 billion grant to the federal government for extra liquidity, Punjab's budget surplus remains so large that it raises questions about why the Maryam Nawaz-led government went beyond the IMF's loan requirement for regular surpluses. Several areas in the budget have justifiable needs for additional funding. While Punjab is the most developed province, it is not in a position to leave cash unused.
Unfortunately, while the opposition raised this issue in the House, its overwhelming priority remains partisanship rather than finding areas of agreement and cooperation that could benefit the entire province. This leaves citizens, who are squeezed for revenue, in the unenviable position of watching their taxes go unutilised.
