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Punjab unveils Rs5.13 trillion budget with major push for education, health and skills development

MM News Staff by MM News Staff
June 16, 2026
Reading Time: 3 mins read

Punjab Finance Minister Mujtaba Shuja-ur-Rehman presented a provincial budget worth Rs5,131 billion in the Punjab Assembly.

The proposed budget estimates total expenditure at Rs3,569.6 billion. It includes a recommended 7% increase in government employees’ salaries and a 3.5% rise in pensions. Under the Provincial Finance Commission (PFC) award, Rs803 billion has been proposed for local government institutions, while service delivery expenditure is set at Rs783 billion.

The budget session of the Punjab Assembly commenced with a delay of one hour and forty minutes under the chairmanship of Speaker Malik Muhammad Ahmad Khan. The session witnessed strong protests from the opposition, which raised slogans upon entering the house. Protesters carried placards demanding the release of Imran Khan and chanted slogans including “Shame on you” and “Release Khan”.

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As the Finance Minister began his budget speech, opposition members intensified their protest, standing near the Speaker’s dais in front of the Chief Minister and raising slogans rejecting the budget as “fake”.

On the expenditure side, Rs578 billion has been allocated for routine administrative spending and Rs679 billion for recurrent expenditures. Education has been allocated Rs750 billion, while Rs500 billion has been earmarked for the health sector.

Federal transfers to Punjab under the NFC Award are estimated at Rs4,390 billion. The province’s own revenue target has been set at Rs1,209.86 billion. The budget also incorporates a projected surplus of Rs910 billion in line with the IMF-aligned fiscal framework.

In the education sector, allocations exceeding 15% of the total budget include major initiatives such as the CM Laptop Programme, under which 110,000 laptops will be distributed at a cost of Rs27 billion, and the Honhaar Scholarship Programme with Rs15 billion allocated. The School Wheels Programme, aimed at providing milk to 1.12 million students across 13 districts, has also been expanded alongside nutrition-focused interventions addressing child malnutrition. Additional investments include autism education centres across all districts and STEM and leadership development programmes.

The health sector has been allocated over Rs500.62 billion, with Rs424.32 billion for non-development expenditure and Rs76.3 billion for development projects.

A major component of the budget focuses on skills development under the “Economic Transformation Vision”. The “Skilling Punjab” initiative has been allocated Rs42 billion to provide workforce training aligned with local and international labour market demands, with an aim to train over 162,000 individuals in three years. The “Skills for Global Needs” programme, with Rs51 billion allocated, aims to train 240,000 individuals and boost foreign remittances.

The “Frontier Tech Skills and Innovate Punjab Programme” has been allocated Rs12.3 billion to train millions in advanced technologies, while supporting startups and increasing female participation in tech training to at least 40%. The “Accelerate Punjab Tech Skills Programme” will provide international certifications and industry-based training, targeting improved monthly earnings for youth.

An Advanced Automotive Technology Centre is planned in Shahdara, Lahore with an allocation of Rs99 crore, aimed at providing international-standard technical training annually.

Under the Smart Safe Cities initiative, Rs47 billion has been allocated for surveillance expansion across districts and tehsils using data analytics, command and control systems, drones, and CCTV infrastructure. Additionally, Rs14.21 billion has been allocated for the establishment of 28 district-level crime scene units to ensure scientific evidence collection and forensic standards.

In the social sector, the Women Development Department has introduced multiple empowerment initiatives, including daycare centres, livestock asset transfer programmes, and IT training schemes. A Women’s University is also planned in Dera Ghazi Khan.

Under the “Safe Punjab” vision, Rs252 billion has been allocated for law enforcement agencies to strengthen security and modern policing systems.

Other initiatives include the expansion of Sahulat Bazaars with Rs19.34 billion allocated, financial assistance programmes for imams of mosques, and Rs5 billion for the restoration of minority religious sites.

The budget reflects a strong emphasis on human capital development, digital transformation, public safety, and social inclusion, alongside continued fiscal alignment with international financial frameworks.

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