LAHORE: The Lahore Metropolitan Corporation (MCL) has almost finalised its over Rs18.65 billion budget with Rs16.5 billion receipts and over Rs2 billion deficit for the fiscal year 2026-27.

According to a document available with Dawn, the MCL receipts amount to Rs16.6 billion from various sources, including Rs4 billion from the Punjab government under the Provincial Finance Commission (PFC) share and special packages.

The other receipts during the year include Rs2 billion from the UIP tax, Rs8 billion under TTIP receipts, Rs1.5 billion as bus stands’ revenue, Rs500 million from building plan approval fees, Rs500 million from the rents of shops and Rs100 million projected from the sale of stock of regulation store.

On the expenditure side, the MCL has earmarked a total of Rs18.65 billion that includes Rs4.5 billion for salaries, Rs5 billion have been allocated for development expenditures, including Rs3 billion for new development schemes followed by Rs2.5 billion for pension contribution. nother Rs1 billion has been earmarked for celebration of national events, Rs1 billion for repair/maintenance of roads, Rs1.5 billion for beautification schemes, Rs1.5 billion for payment of electricity bills and Rs300 million each for repair/maintenance of street lights and buildings.

MCL has earmarked Rs600 million for the payment of POL (petrol, diesel, lubricants), Rs200 million for financial assistance, Rs170 million for the solarisation of MCL, Rs30 million for literature activities in Lahore city and Rs50 million for sports events.

“If the budget with the aforementioned expenditures is approved, it will then be a deficit budget, as the expenditures are over Rs2 billion higher than the receipts/revenue projected for the financial year,” commented an official source.

“The MCL should reduce its expenses by making visible cuts to its allocations related to POL, beautification schemes and development projects. In this way, the MCL can have a balanced budget,” he explained.

The deputy commissioner, who also holds charge of the MCL as administrator due to suspension of the operation of local bodies’ in Punjab, says that the budget is not yet finalised.

“It is not final,” the DC said in a message to Dawn when asked about the deficit in the budget and how the MCL will be able to bridge the gap between receipts/revenues and expenditures.

SUSPENDED: The Lahore Electric Supply Company (Lesco) administration on Tuesday suspended its commercial superintendent from service for misconduct.

The official was posted in the revenue office of Kot Lakhpat division, according to a spokesperson.

Published in Dawn, August 5th, 2026