Summary The budget is expected to allocate more than Rs700 billion for development spending
LAHORE (Dunya News) - The Punjab government is set to unveil its tax-free budget for fiscal year 2026-27 today (Tuesday) during the 43rd session of the Punjab Assembly, convened by the provincial governor.
Provincial Finance Minister Mian Mujtaba Shuja-ur-Rehman will present the budget and table key financial documents, including the annual financial statement for the upcoming fiscal year, the supplementary budget for FY2025-26, and the Punjab Finance Bill 2026.
He is also expected to present proposed amendments to Sections 5 and 76 of the Punjab Sales Tax on Services Act, 2012, along with the province's Fiscal Risk Statement.
According to official sources, the proposed budget outlay exceeds Rs5.3 trillion. Punjab is expected to receive approximately Rs4.4 trillion under the National Finance Commission (NFC) Award, while provincial revenue collection is projected at around Rs1 trillion.
The budget is expected to allocate more than Rs700 billion for development spending and Rs800 billion for the Punjab Finance Commission. Around Rs650 billion has been earmarked for salaries and Rs505 billion for pension payments.
Government employees are likely to receive salary increases in line with those announced by the federal government.
The Annual Development Programme (ADP) includes 3,560 development schemes, with approximately Rs493.25 billion proposed for ongoing projects and Rs258.75 billion for new initiatives.
Among the major projects planned for the next fiscal year are the establishment of the Kulsoom Nawaz Cancer Hospital in Dera Ghazi Khan, expansion of the Chief Minister's Laptop Programme, and continued funding for the Kisan Card, Livestock Card and Parwaaz Card International Placement Programme.
The budget also proposes the creation of the Mian Nawaz Sharif University of Engineering and Technology and the Shehbaz Sharif Sports Complex.
Meanwhile, authorities have put in place extensive security measures around the Punjab Assembly amid expectations of opposition protests during the budget session.
Separately, the Balochistan Assembly will meet on Wednesday to present its provincial budget, with strict security protocols announced, including a ban on the entry of armed government and private security personnel into the assembly secretariat during proceedings.
