Punjab unveils Rs5.9tr budget for FY2026-27 with focus on education, health and development

Punjab Finance Minister Mian Mujtabaur Rehman on Tuesday presented the provincial budget for fiscal year 2026–27 after approval from the provincial cabinet.

Chief Minister Maryam Nawaz Sharif, along with provincial ministers and MPAs, attended the budget session. The government has proposed a Rs5.9 trillion budget, which is 10.7 per cent higher than the current fiscal year.

According to the budget speech, Punjab expects total revenue of Rs1.2 trillion in the next financial year. Total current and capital expenditure has been projected at Rs679 billion, while Rs752 billion has been allocated for development spending.

The government has proposed Rs750 billion for education and Rs500 billion for health, marking increases of 15 per cent and 10 per cent respectively compared to the current year. A 7 per cent increase in salaries of government employees has also been proposed, raising salary expenditure to Rs639 billion. Pension spending is expected to rise by 3.5 per cent to Rs500 billion.

In the health sector, Rs20 billion has been allocated for the Nawaz Sharif Institute of Cancer Treatment and Research, while Rs169 billion has been set aside for the Nawaz Sharif Medical District.

Other major allocations include Rs15.21 billion for a cancer hospital in Dera Ghazi Khan, Rs23.37 billion for a children’s hospital in Bahawalpur, and Rs1.9 billion for autism schools in every division.
For education and skills development, Rs6.9 billion has been proposed for IT labs in colleges, while Rs40 billion will go to academic leadership and STEAM programmes.

The province has allocated Rs252 billion for law and order, including funds for new police stations, crime scene units and riverine area security. Transport-related spending includes Rs26.6 billion for mass transit projects in Gujranwala and Faisalabad, Rs168 billion for an electric bus programme, and Rs10 billion for regional railways.