LAHORE: The Punjab govt has proposed an increase in salaries and pensions for government employees and retirees in its Budget 2026-27. The recommendation comes as the province prepares to present its annual budget in the Punjab Assembly.
According to sources in the provincial finance ministry, all arrangements for the budget presentation have been completed. Provincial Finance Minister Mujtaba Shuja-ur-Rehman is scheduled to present the budget on June 16.
Officials said the budget figures have been finalized. A meeting of the provincial cabinet is expected to take place before the assembly session to approve the proposed budget measures.
Sources revealed that the Punjab govt has prioritized social sector development in the upcoming financial plan. The budget is expected to focus on public welfare, education, healthcare, and other key social services.
One of the major highlights of the budget is the recommendation to increase salaries and pensions. The proposed increase is expected to follow the same pattern announced by the federal government in the national budget for 2026-27.
The federal government recently proposed a 7 percent increase in salaries for government employees. It also announced a 7 percent increase in pensions for retired workers. Provincial authorities are considering similar relief measures for employees in Punjab.
The proposed increase comes at a time when many households continue to face rising living costs. Inflation and increasing expenses have placed additional financial pressure on both working individuals and retirees.
Sources also indicated that the Punjab govt is not planning to introduce any new taxes in the upcoming budget. This decision is likely to provide relief to residents already dealing with economic challenges.
In addition to salary and pension proposals, the provincial budget is expected to support various development projects. Social welfare initiatives are likely to remain a key focus area.
The budget announcement follows recent relief measures introduced at the federal level. These measures included reductions in income tax rates for several categories of salaried individuals.
Under the revised federal tax structure, taxpayers in different income brackets are expected to benefit from lower tax rates. The changes were introduced to help salaried individuals manage the impact of inflation and rising costs.
Officials say the Punjab govt aims to align its budget strategy with broader economic relief efforts. The proposed salary and pension increases are part of that approach.
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The final details of the provincial budget will become clear once it is formally presented in the Punjab Assembly. Government employees, pensioners, and other stakeholders are closely watching the announcement for expected relief measures in the new fiscal year.
