LAHORE: The Punjab government has entered the final stages of preparing the budget for the financial year 2026-27, budget proposals have been received from all government departments.
According to reports, a proposal to not impose any new taxes in the upcoming provincial budget is under consideration, which is being described as a possible relief for the public.
Sources in the Ministry of Finance say that although there is no proposal to impose new taxes, the tax net can be widened and the tax rate on some services can be changed to improve revenue.
The government’s priorities have been clarified in the budget, which include education, health, road construction, sanitation, agriculture, law and order and provision of affordable food to the public.
According to government sources, the total size of the Punjab budget for the upcoming financial year is likely to be around Rs 6,000 billion, while Rs 1,500 billion has been proposed to be allocated for development projects.
Sources have also said that the proposal to increase the salaries and pensions of government employees at the same level as the federal government is also part of the budget, which is expected to provide relief to millions of employees.
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The Punjab government is likely to receive more than Rs 4.5 trillion in funds under the NFC award, which will play an important role in the development and administrative expenses of the province.
It should be noted that the budget is likely to be presented in the Punjab Assembly in the second week of June. Provincial Finance Minister Mujtaba Shuja-ur-Rehman will present this budget in the house.
