Federal Budget 2026-27 Allocates Rs37 Billion for Health The federal government has announced new allocations for the fiscal year 2026-27, focusing on healthcare development, cultural preservation and tax relief for salaried individuals. According to official budget documents, significant funds have been earmarked for both the health sector and national heritage projects as part of the Public Sector Development Programme (PSDP).
The government has proposed Rs37.438 billion for the health sector with the largest share of Rs28.779 billion allocated specifically for hospital services. Additional funds include Rs7.417 billion for health administration, Rs1.204 billion for public health initiatives and Rs38 million for medical equipmentreflecting an emphasis on strengthening healthcare infrastructure across the country.
Alongside healthcare spending, Rs445 million has been allocated for projects under the National Heritage and Culture Division. These include the establishment of a Research and Development Centre in the Department of Archaeology and Museums, the development of Aiwan-e-Noorat-e-Quaid-i-Azam at Mazar-e-Quaid and the creation of the National Cultural Heritage Institute in Islamabad. The total cost of these projects is estimated at Rs2.668 billion, with ongoing expenditures continuing into the next fiscal cycle.
In addition to development spending, the budget introduces tax relief measures for the salaried class. The government has proposed reductions in income tax rates across multiple slabs and the abolition of the existing 10 percent surcharge aiming to ease financial pressure on employees in both public and private sectors.
Finance Minister Muhammad Aurangzeb stated during his budget speech in the National Assembly that the government recognizes the financial difficulties faced by salaried individuals. He added that, under the direction of Prime Minister Shehbaz Sharif, the budget includes targeted tax reductions designed to increase disposable income and provide relief amid economic challenges.
The proposed measures reflect a broader attempt to balance fiscal constraints with public welfare priorities. While increased allocations for health and heritage projects indicate a development-focused approach, the tax relief for salaried individuals suggests an effort to address rising living costs and economic pressure on middle-income groups.
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Khalid Masood
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