LAHORE:The Punjab government has set aside a total of Rs750billion for education sector in the fiscal year 2026-2027. Of this amount, Rs686.8billion has been allocated for non-development expenditures, primarily covering salaries and operational costs, while only Rs63.3billion has been reserved for development projects under the Annual Development Programme (ADP).
As per the breakdown of the development allocation, for higher education Rs30.5billion has been allocated, for school education Rs25.3 billion, for literacy and non-formal education Rs3.8billion while for special education Rs3.7billion has been allocated.
Thus the percentage share of each sector in the total education budget is 48.18pc for higher education, 39.97pc for school education, 6.00pc for literacy and non-formal education, and 5.85pc for special education. This breakdown highlights that higher education has been prioritised most heavily followed by school education, while special education received the smallest share in percentage terms.
When compared with the previous budget, the provincial education budget for the fiscal year 2026-2027 contracted by 7.61 percent, dropping to a total outlay of Rs750billion from the Rs811.8 billion allocated in the previous fiscal year. The funding available for new development projects under the ADP has been cut by more than half, plummeting from Rs148.5billion last year to just Rs63.3billion for the current fiscal layout.
School education faced the most drastic cut, with its development funds slashed from Rs100 billion down to Rs25.3billion, while higher education development dropped from Rs39.5billion to Rs30.5billion. Special education and non-formal literacy initiatives were similarly constrained, seeing their development portfolios reduced to Rs3.7billion and Rs3.8 billion respectively. In the previous budget, Rs5billion were allocated for special education, and Rs4 billion for literacy and non-formal education in the ADP 2025-26.
It is pertinent to mention here that governments often compare the new budget with the actual money spent in the previous year, known as the Revised Estimates, instead of the amount that was originally announced. If spending in the last year turned out to be much lower than promised, then the new allocation can look like an increase because it is measured against that smaller, actual spending figure.
However, talking to The News, Rana Sikandar Hayat, Punjab Education Minister, clarified that the comprehensive allocation for school education actually totaled Rs112 billion, marking a significant Rs12 billion increase from previous baselines. According to him, this expanded portfolio features Rs55 billion earmarked for the Punjab Education Foundation (PEF) and Rs10 billion for the Punjab Education Initiative Management Authority (PEIMA) to bolster public-private partnerships. The infrastructure and student welfare agenda includes Rs5billion for the School Meal Programme, Rs5billion for constructing additional classrooms, and Rs5billion specifically to reconstruct dangerous school buildings. Furthermore, the minister highlighted key academic and technological investments, including Rs15 billion for STEM laboratories, Rs4billion for Danish Schools, Rs3billion for Early Years Centers of Excellence, and Rs3billion dedicated to setting up modern computer IT labs across the province.
