LAHORE: The Punjab government has indicated that any salary increase for government employees in the upcoming Punjab Budget 2026-27 will be in line with the decision announced by the federal government. The move is being closely watched by public sector employees who are awaiting relief measures amid rising living costs.
According to official sources, the Punjab government has finalized key features of the provincial budget, which is expected to have a total size of approximately Rs5,131 billion. The budget is designed to balance development spending, administrative expenses, and financial commitments while supporting economic growth across the province.
Sources revealed that Punjab is prepared to provide a major financial adjustment of Rs570 billion to the federal government. The measure is expected to assist Islamabad in reducing the fiscal deficit and achieving challenging IMF targets under ongoing economic reforms.
Under the National Finance Commission (NFC) Award, Punjab is expected to receive Rs3,793.70 billion in divisible tax revenues. In addition, the province’s own tax collection is projected to reach Rs1,330 billion during the next fiscal year.
The total provincial expenditure has been estimated at Rs3,569.60 billion. Out of this amount, Rs650 billion has been proposed for government employees' salaries, while Rs505.80 billion has been allocated for pension payments.
The proposed budget also includes Rs800 billion for the Punjab Finance Commission and Rs150 billion for the Suthra Punjab Program. Additionally, Rs25 billion has been earmarked for social security initiatives aimed at supporting vulnerable segments of society.
For development and capital expenditures, the government has proposed Rs570 billion, while operational expenses are estimated at Rs580.20 billion. An additional Rs221.90 billion has been suggested for investment-related projects, along with Rs54 billion for foreign-funded development programs.
The Punjab Budget 2026-27 is expected to focus on fiscal discipline, development projects, public welfare, and economic stability while aligning with broader federal budget objectives.
