Punjab Finance Minister Mujtaba Shuja-ur-Rehman on Tuesday unveiled a Rs5,903 billion provincial budget for 2026-27. The tax-free budget proposes salary and pension increases while allocating significant funds for development projects. The budget directly affects government employees, pensioners, students, patients, and millions of Punjab residents.
Presenting the budget in the Punjab Assembly, the finance minister announced Rs752 billion for development projects across the province. He said the government remained committed to development without compromising fiscal discipline. Shuja added that every district and tehsil would benefit from ongoing and new initiatives under the provincial development programme.
The budget proposes a seven percent increase in salaries for government employees and a 3.5 percent increase in pensions. More than Rs1.1 trillion has been allocated for salaries and pension payments. The government earmarked Rs650 billion for employee salaries and Rs505 billion for pension obligations during the next fiscal year.
Meanwhile, the government allocated substantial resources to social sectors. The education sector received Rs750 billion, making it one of the largest allocations in the budget. Additionally, Rs500 billion has been set aside for healthcare services to improve medical facilities and public health outcomes across Punjab.
The budget session witnessed strong opposition protests inside the assembly. Opposition lawmakers chanted slogans and gathered near the Speaker’s dais during the finance minister’s speech. Despite the disruption, the government highlighted economic stabilization efforts, austerity measures, flood relief initiatives, and job creation, claiming that more than 400,000 people had secured employment on merit.