Punjab to present Rs5.3 trillion tax-free budget for FY2026-27 today

The Punjab government is to present its tax-free budget for the fiscal year 2026-27 today (Tuesday) in the 43rd session of the Punjab Assembly summoned by the provincial governor.

Provincial Finance Minister Mian Mujtaba Shuja-ur-Rehman will submit the budget and table key financial documents including annual financial statement for FY2026-27, supplementary budget for FY2025-26 and Punjab Finance Bill 2026.

He is also anticipated to table suggested revisions under Sections 5 and 76 of the Punjab Sales Tax on Services Act, 2012 and the province’s Fiscal Risk Statement.

The proposed budget outlay is around Rs5.3 trillion, official sources say. Punjab is likely to get over Rs4.4 trillion under the National Finance Commission (NFC) Award while provincial income collection is estimated to be around Rs1 trillion.

The budget is likely to have Rs 700 billion plus for development expenditure and Rs 800 billion for Punjab Finance Commission. Rs650 billion for salaries and Rs505 billion for pension payments have been earmarked.

Salary hikes for government employees are expected to be in line with those announced by the federal government.

The Annual Development Programme (ADP) encompasses 3,560 development schemes and Rs493.25 billion is proposed for continuing projects and Rs258.75 billion for new schemes.

Major projects planned for the next fiscal year include inauguration of Kulsoom Nawaz Cancer Hospital in Dera Ghazi Khan, expansion of the Chief Minister’s Laptop Programme and continuation of funding for the Kisan Card, Livestock Card and Parwaaz Card International Placement Programme.

The budget also proposed to establish Mian Nawaz Sharif University of Engineering and Technology and Shehbaz Sharif Sports Complex.

Meanwhile, police have tightened security outside the Punjab Assembly ahead of the budget session, anticipating opposition protests.

Meanwhile, the Balochistan Assembly will gather on Wednesday to submit the provincial budget. Strict security measures have been set for the session including a restriction on armed government and private security personnel entering the assembly secretariat during the proceedings.