PUNJAB BUDGET 2026-27: Punjab ADP slashed 40pc to Rs752bn

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Labourers work at a construction site on the outskirts of Peshawar on June 12, 2024. Photo for representation. — AFP/File
Labourers work at a construction site on the outskirts of Peshawar on June 12, 2024. Photo for representation. — AFP/File

• Province surrenders Rs749bn to national exchequer
• Social sector gets largest share at Rs333.66bn
• Infrastructure allocated Rs117.24bn; production sector gets Rs103.25bn
• Transport gets bulk of services funds at Rs78.5bn

LAHORE: The Punjab government on Tuesday unveiled a scaled-down Rs752 billion Annual Development Programme (ADP) for the next fiscal year, down about 40 per cent from last year’s Rs1,240bn, after surrendering Rs749bn to the national exchequer, with social sectors receiving the largest share of development spending, followed by infrastructure and production-related sectors.

The social sector leads with Rs333.66bn. Infrastructure development has been allocated Rs117.24bn, followed by the production sector with Rs103.25bn, services with Rs86.08bn, governance and law and order with Rs72.95bn, and climate with Rs38.82bn.

Of the Rs333.66bn earmarked for the social sector, Local Government and Community Development gets the highest allocation of Rs115.5bn, followed by Water and Sanitation with Rs62.76bn.

Major allocations within the social sector include Rs43.1bn for Specialised Healthcare and Medical Education, Rs33.2bn for Health and Population, Rs30.5bn for Higher Education and Rs25.3bn for School Education.

Sports and Youth Affairs has been allocated Rs5.5bn, while Literacy and Non-Formal Education and Special Education have been allocated Rs3.8bn and Rs3.7bn respectively. Human Rights and Minority Affairs will receive Rs3bn, Women Development Rs2.5bn, and Social Welfare as well as Auqaf and Religious Affairs Rs2bn each. Emergency Services, Rescue 1122, has been allocated Rs800m.

Infrastructure development is the second-largest component of the ADP, with an allocation of Rs117.24bn. The Communication and Works Department will receive the largest share of Rs74.1bn for road networks and public infrastructure projects, while Irrigation has been allocated Rs30bn, highlighting the importance of water management and agricultural support.

Housing, Urban Development and Public Health Engineering will receive Rs8.84bn and the energy sector Rs4.3bn.

The production sector has been allocated Rs103.25bn, reflecting the government’s emphasis on economic growth and productivity. Agriculture commands the largest share within the sector, receiving Rs60bn, reaffirming its pivotal role in Punjab’s economy.

Other key allocations include Rs16.65bn for Industries, Commerce and Investment, Rs12.56bn for Skills Development and Entrepreneurship, Rs6.75bn for Livestock and Dairy Development and Rs6bn for Tourism, Archaeology and Museums. Food Safety and Consumer Protection has been allocated Rs900m, while Mines and Minerals will receive Rs390m.

The services sector has been allocated Rs86.08bn, with transport accounting for the bulk of the amount at Rs78.5bn. Information and Culture will receive Rs6.7bn, Labour and Human Resource Development Rs630m, and Cooperatives Rs250m.

To address environmental challenges, the government has allocated Rs38.82bn to the climate and ecology sector. Of this amount, Rs15.42bn has been earmarked for Environment and Climate Change, Rs15.3bn for Aquaculture and Fisheries, and Rs8.1bn for Forestry and Wildlife.

These investments are aimed at promoting environmental conservation, climate adaptation and sustainable natural resource management across the province.

Another Rs72.95bn has been allocated to governance, law and order to improve public administration and institutional capacity.

The largest allocations under this head include Rs25.35bn for Planning and Development, Rs18.95bn for the Board of Revenue and Rs12.88bn for Police.

Other allocations comprise Rs3.12bn for Services and General Administration, Rs3bn for the Judiciary, Rs2.43bn for Finance, Rs2.2bn for Law and Parliamentary Affairs and Rs2bn for the Home Department.

The remaining funds include Rs1.06bn for the provincial assembly, Rs830m each for Public Prosecution and Information Technology and Innovation, Rs200m for Excise and Taxation and Rs100m for Management and Professional Development.

Published in Dawn, June 17th, 2026

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