Punjab government has unveiled a Tax-Free Budget worth more than Rs5.85 trillion for the fiscal year 2026–27. The budget was presented during the 43rd session of the Punjab Assembly by Finance Minister Mian Mujtaba Shuja-ur-Rehman.
The budget session was held under strict security arrangements due to expectations of opposition protests. Alongside the budget speech, the government also presented several important financial documents, including the annual financial statement for FY2026–27, revised estimates for FY2025–26, the Punjab Finance Bill 2026, proposed amendments to the Punjab Sales Tax on Services Act 2012, and the province’s Fiscal Risk Statement.
According to official figures, Punjab is expected to receive around Rs4.4 trillion through the National Finance Commission (NFC) Award. Provincial revenue collection is projected to reach nearly Rs1 trillion during the upcoming fiscal year.
The Tax-Free Budget focuses on development spending, public services, and welfare initiatives without introducing new taxes. Officials say the budget aims to maintain economic stability while supporting growth across various sectors.
A major portion of the budget has been allocated to development projects. More than Rs700 billion has been set aside for development spending. Meanwhile, approximately Rs800 billion has been allocated to the Punjab Finance Commission.
Government employees will also receive significant attention under the new budget. Around Rs650 billion has been earmarked for salaries, while pension payments are estimated at Rs505 billion. Provincial employees are expected to benefit from salary increases similar to those announced by the federal government.
The Annual Development Programme (ADP) remains a key feature of the budget. The programme includes 3,560 development schemes across Punjab. Of the total allocation, Rs493.25 billion will be spent on ongoing projects, while Rs258.75 billion has been reserved for new initiatives.
Several major projects have been highlighted in the budget. These include the establishment of the Kulsoom Nawaz Cancer Hospital in Dera Ghazi Khan and the expansion of the Chief Minister’s Laptop Programme.
The government has also allocated funds for flagship schemes such as the Kisan Card, Livestock Card, and Parwaaz Card International Placement Programme. In addition, plans have been announced for the establishment of the Mian Nawaz Sharif University of Engineering and Technology and the Shehbaz Sharif Sports Complex.
Officials say the Tax-Free Budget reflects the government’s focus on infrastructure development, education, healthcare, agriculture, and employment opportunities. The financial plan also seeks to improve public service delivery throughout the province.
Security around the Punjab Assembly remained tight during the budget session. Law enforcement agencies were deployed to ensure order and manage any potential demonstrations.
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With a total outlay of over Rs5.85 trillion, the budget outlines Punjab’s financial priorities for the coming year while emphasizing development, public welfare, and economic growth across the province.
