June 24, 2026
By Aitzaz Ibrahim
LAHORE
According to official budget documents, in Punjab, Rs 752 billion has been allocated for development purposes in the new fiscal year, marking a significant decrease from last year’s development budget of Rs 1,240 billion.
The budget also includes a 7 percent increase in salaries and a 3.5 percent increase in pensions, both lower than last year, when salaries were increased by 10 percent and pensions by 5 percent.
In the 2026–27 budget, Rs 823.9 billion has been allocated to local governments and authorities, which is also lower than last year’s allocation of Rs 934.2 billion.
Here is the breakdown of Punjab’s annual development budget:
Education
A total of Rs 750 billion has been allocated for the education sector in 2026–27, compared to Rs 811 billion in the previous year. This shows an decrease of nearly Rs 61 billion.
Out of this amount, the School Education Department has been given more than Rs 626 billion, while the Higher Education Department has received around Rs 114 billion.
Several new and continuing initiatives were announced for students. These include the expansion of the Chief Minister’s Laptop Programme, under which 110,000 laptops will be distributed in the coming year, compared to 42,000 last year. The government has also allocated Rs 8 billion for the Honhaar Scholarship Programme, which has already supported more than 100,000 students.
Human Rights & Minority Affairs
The Human Rights and Minorities Affairs Department has been allocated around Rs 3 billion in the 2026–27 budget, which is about 25 percent lower than last year’s allocation of Rs 4 billion.
The development schemes under this department include the Chief Minister Minority Development Program (Phase-II), with an allocation of Rs 1.5 billion, and the Chief Minister Minority Development Program, with Rs 293 million allocated.
An amount of Rs 267 million has been allocated for the renovation of graveyards, shamshan ghats, and community centres for minorities, while Rs 250 million has been set aside for the Religious Tourism Conservation and Preservation Initiative.
The government has allocated Rs 246 million for the preservation of worship places for minorities, Rs 200 million for the Minority Development Fund, and Rs 134 million for the renovation of minorities’ religious places.
In addition, Rs 93 million has been allocated for capacity development to increase awareness about human rights, while Rs 16 million has been allocated for the renovation of Saint Joseph Church in.
Women empowerment
The Women Development Department has been allocated Rs 2.5 billion in the 2026–27 budget, which is an increase from last year’s allocation of Rs 1.4 billion. Funds have been allocated for women empowerment programmes, skill development, and safety initiatives.
Key projects include Punjab Women Empowerment Program, establishment of Daycare Center, while the government also plans to construct women’s working hostels in several districts, including Vehari, Muzaffargarh, Rahim Yar Khan, and Gujranwala. Universities are planned in Sialkot and Dera Ghazi Khan.
Health sector
The health sector has been allocated Rs 500.62 billion in the 2026–27 budget, which is about 20.5 percent lower than last year’s allocation of Rs 630 billion. A major project announced in the budget is the establishment of a medical district plan. Under this plan, teaching hospitals, medical colleges, and nursing colleges will be developed in different districts at a total cost of Rs 169 billion.The government also plans to upgrade more than 2,500 Basic Health Units and 115 Rural Health Centres to improve healthcare access in rural areas.
Social Welfare
The total outlay for FY2026-7 is Rs 5.903 trillion, reflecting an increase of about 10.7 percent compared to last year’s budget of Rs 5.335 trillion.
The Government of Punjab has allocated Rs 2 billion for social welfare projects in the 2026–27 budget, which is a significant decrease from last year’s budget of Rs 7 billion.The current budget includes welfare schemes such as the establishment of old age homes, women protection centres in Sahiwal, Sargodha, and Bahawalpur, and the revamping of existing social welfare facilities and other welfare activities.
Environment & Climate Change Budget
Allocation for or Environment and Climate Change in the 2026–27 budget is 15.42 billion, to address issues such as smog, pollution, and other environmental challenges. Last year, this allocation was Rs 15 billion, so the budget remains almost the same.
Key schemes and projects include Rs 4,700 million for smog mitigation and awareness campaigns.Rs 2,864 million has been allocated for the installation of 44 Air Quality Monitoring Systems (AQMS) under the World Bank programme. Rs 1,500 million is allocated for the establishment of a Climate Observatory.
Labour & HR Development
Punjab has allocated Rs 0.63 billion in the 2026–27 budget, which is a significant decrease from last year’s allocation of Rs 20.4 billion. The schemes include the establishment of Employment Facilitation Centres (EFCs) in Punjab, the establishment of a Labour Market Research Cell (LMRC), and the procurement of equipment for newly established testing facilities.
Other projects include the renovation of district labour office buildings and the mapping of occupational diseases in Punjab.
What the Opposition says
Leader of the Opposition in the Punjab Assembly Moeen-ud-Din Riaz Qureshi criticized the budget on the assembly floor, saying the government is calling it historic and people-friendly, but the budget has failed to provide security and basic civic facilities to the public.
He said no welfare project for Punjab’s 125 million people is visible in the budget, except what he described as the promotion of Chief Minister and her family. He said similar claims were made in the assembly last year that Punjab would transform and progress, but questioned where that promised change and development had gone.
Qureshi challenged the government to name even one major project that had provided relief to the public. He said the government must first answer questions about previous projects before launching new ones. Referring to the outsourcing of schools, he said the government had introduced the policy last year and is continuing it this year as well, questioning whether this reflects the government’s failure to manage the education sector.
He also questioned the government’s claim that education is a top priority and asked how much money was spent on education between 2025 and 2026, how many projects were completed, and how many schools were built. He further criticized the government’s agricultural policies, saying farmers have been badly affected and are protesting. He demanded an audit of all projects and budget allocations from the previous year.
Meanwhile, Pakistan Tehreek-e-Insaf MPA Shahab-Ud-Din Khan said the budget presented by the bureaucracy is not properly understood by either the finance minister or the house. He called it a ‘manipulation of paperwork’ and statistics aimed at misleading the public.
He said that out of Punjab’s 130 million population, around 50 million people live in South Punjab, yet only three to four projects have been included for the region in the budget. He said South Punjab has largely been ignored and reiterated the demand for it to be made a separate province.
Pakistan Peoples Party MPA Ali Haider Gillani, while speaking on the budget, said agriculture contributes 23 percent to Punjab’s GDP and around 70 percent of the population is linked to the sector. He said poor government policies have severely damaged agriculture.
Gilani also criticised the outsourcing of the health and education sectors and opposed plans to extend outsourcing to universities. He said the PPP is against this policy and added that if the party comes to power, it will work toward creating a separate South Punjab province.