Punjab Development Budget Likely to Be Rs. 1.45 Trillion

The Punjab government has prepared the second draft of its budget proposals for FY2026-27, with the province’s development budget expected to reach Rs. 1.45 trillion, according to officials familiar with the planning process.

Transport has emerged as the largest priority area in the proposed development program, with projects worth Rs. 303 billion expected to receive funding. The allocation reflects the provincial government’s continued focus on improving urban mobility and transport infrastructure across Punjab.

The draft budget proposes allocating Rs. 980 billion for the Annual Development Programme (ADP), which includes a range of infrastructure, public service and community development projects.

Among the proposed initiatives are new smart police stations in Okara, Rawalpindi, Kasur, Multan, Gujranwala and Pakpattan. The budget also includes funding for development projects in Lahore, clean drinking water schemes and the expansion of the Model Villages program.

The government is considering an allocation of Rs. 30 billion for Model Villages and Rs. 42 billion for a roads rehabilitation program aimed at improving road infrastructure across the province.

The local government sector is also expected to receive significant funding, with a proposed allocation of Rs. 250 billion. Of this amount, Rs. 156 billion is earmarked for local development projects, while provincial authorities are also considering measures to increase the financial autonomy of elected local government representatives.

The draft further proposes allocating Rs. 560 million for the Local Government IT Monitoring System and Rs. 50 billion for sewerage projects and road rehabilitation schemes at the union council level.