The Punjab government is finalizing preparations for its budget for the fiscal year 2026-27, with major allocations proposed for salaries, pensions, development initiatives, and social welfare programs. According to sources, any increase in the salaries of provincial government employees will be implemented in accordance with the federal government’s decision.
Under the proposed budget framework, approximately Rs650 billion is expected to be allocated for government employees’ salaries. In addition, around Rs505.8 billion has been proposed for pension payments, reflecting the province’s commitment to meeting its financial obligations to both serving and retired employees.
Sources indicate that Punjab is projected to generate nearly Rs1.33 trillion in revenue through provincial taxes and other income streams during the upcoming fiscal year. These funds are expected to support public services, development projects, and administrative expenditures across the province.
A proposal has also been prepared to allocate Rs800 billion for the Punjab Finance Commission. The allocation is aimed at ensuring financial resources are distributed to local governments and administrative units to support service delivery and regional development.
In the social sector, the government is considering allocating Rs25 billion for social protection programs. Additionally, the Clean Punjab (Suthra Punjab) Program is expected to receive Rs150 billion to improve sanitation, waste management, and urban cleanliness throughout the province.
According to budget recommendations, Rs580.2 billion may be reserved for operational expenditures, while Rs221.9 billion has been proposed for various investment and development programs. These allocations are intended to support infrastructure improvements and ongoing public sector initiatives.
Sources further suggest that Rs54 billion could be earmarked for projects financed through external assistance, while Rs570 billion may be allocated for other development and capital expenditures. Overall, Punjab’s total expenditures for the fiscal year 2026-27 are proposed to reach approximately Rs3.569 trillion, highlighting the government’s focus on balancing employee welfare, public services, and long-term economic development.
