Government combines austerity measures with development spending, while raising salaries and pensions.
Image: Profit by Pakistan Today
The Punjab government presented a Rs5.903 trillion surplus budget for the 2026-27 fiscal year, focusing on fiscal discipline and economic growth.
Current expenditures have been reduced by 3.1% under an austerity drive, while government employees will receive a 7% salary increase and pensioners a 3.5% raise.
A total of Rs803.88 billion has been allocated for local governments, marking a 5.2% increase from the previous year.
The development budget stands at Rs752 billion, with major investments planned in education, health, infrastructure, agriculture and industry.
The education sector will receive Rs750 billion, including funding for autism schools, IT laboratories and modern learning programmes.
The health sector has been allocated Rs500.62 billion, supporting new hospitals, cancer treatment centres, cardiology institutes and healthcare expansion projects.
Punjab expects to receive Rs4.39 trillion in federal transfers, while provincial revenues are projected at Rs1.21 trillion.
The government said higher revenue collection and expenditure reforms have helped maintain a projected provincial surplus of Rs910 billion.
Opposition parties rejected the budget, calling it anti-people and lacking a clear economic vision, while staging protests during the assembly session.
