Budget 2026-27: Good news for govt employees, pensioners

Punjab is expected to present its budget for the 2026-27 fiscal year in the second week of June, following the federal government’s budget announcement scheduled for 5 June.

According to sources within the Punjab Finance Department, preparations for the provincial budget have been completed, with the total budget outlay expected to be around Rs6 trillion.

The upcoming budget is set to prioritise key sectors including education, healthcare, road infrastructure, sanitation, agriculture and public safety. Provincial authorities aim to allocate resources towards both social welfare and economic development initiatives.

Sources said Punjab Finance Minister Mujtaba Shuja-ur-Rehman is expected to present the budget in the provincial assembly.

The budget is likely to remain tax-free, with no new taxes proposed for the next financial year. In addition, government employees and pensioners are expected to receive salary and pension increases in line with those announced by the federal government.

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A development allocation of approximately Rs1.6 trillion has reportedly been proposed to support infrastructure projects and public sector improvements across the province.

The budget may also include measures to broaden the tax net and adjustments to certain service-sector tax rates as part of efforts to enhance revenue collection without introducing new taxes.

Punjab is expected to receive more than Rs4.5 trillion under the National Finance Commission (NFC) Award, which will remain a major source of provincial revenue.

Sources further indicated that subsidy programmes for farmers, students and labourers are likely to continue under the new fiscal plan, reflecting the government’s focus on social support and economic stability.

The final details of the budget will be confirmed once it is formally presented before the provincial assembly later this month.