LAHORE: The Punjab Assembly received the provincial budget for the 2026-27 fiscal year, featuring a modest increase in salaries and pensions for government employees and a significant reduction in development spending, amid noisy protests from opposition lawmakers.
Punjab Finance Minister Shujaur Rehman presented the budget during a session chaired by Speaker Malik Muhammad Ahmad Khan. The proceedings began one hour and 40 minutes behind schedule and were attended by Chief Minister Maryam Nawaz.
Opposition members staged a protest as the budget speech began, chanting slogans against what they described as a “fake budget.” The demonstration intensified when lawmakers moved toward the speaker’s dais and protested in front of the chief minister.
Under the budget proposals, salaries of government employees will increase by 7%, while pensions will rise by 3.5%. Government officials said the measures were intended to provide relief from inflationary pressures.
The provincial government also proposed a major reduction in development spending. The development budget has been set at 752 billion rupees, down from 1.45 trillion rupees.
According to budget documents, the development allocation for the outgoing fiscal year stood at 1.24 trillion rupees, meaning the new proposal represents a reduction of 488 billion rupees.
The number of development projects has also been cut significantly. The budget includes 3,560 projects compared with 5,755 in the previous year, while the number of new projects has fallen from 1,662 to 420.
The budget documents show a proposed 42.7% increase in the province’s own-source revenue targets. Revenue targets for the Board of Revenue have been increased by 25%, while the Excise, Taxation and Narcotics Control Department has been assigned a 77% higher target.
Before the budget was presented in the assembly, the Punjab Cabinet approved the financial plan during its 35th meeting chaired by Chief Minister Maryam Nawaz. The cabinet reviewed fiscal targets, budget proposals and their impact on various sectors.
The cabinet also approved a resolution related to the reported agreement between Iran and the United States and held detailed discussions on budget recommendations before giving final approval for its presentation in the assembly.
