Federal Budget 2026-27 Complete Summary – Key Highlights, PSDP, Revenue Targets & Economic Outlook

Federal Budget 2026-27 Complete Summary

Key Highlights, Major Allocations, Revenue Targets, PSDP, Social Protection & Economic Outlook

The Federal Budget 2026-27 has been presented with a total outlay of Rs. 18.771 trillion, focusing on economic stability, fiscal discipline, development spending, social welfare, and revenue generation. The budget seeks to balance economic growth with fiscal responsibility while supporting infrastructure development and public services.

Budget at a Glance

Total Budget Outlay

Rs. 18.771 Tn

FBR Revenue Target

Rs. 15.264 Tn

GDP Growth Target

4%

Fiscal Deficit

3.6%

Revenue Collection Targets

The Federal Board of Revenue (FBR) has been assigned a revenue collection target of Rs. 15.264 trillion. The government expects increased collections through digitization, improved compliance, and documentation of the economy.

• Income Tax – Rs. 7.613 Trillion
• Sales Tax – Rs. 4.972 Trillion
• Customs Duty – Rs. 1.651 Trillion
• Federal Excise Duty – Rs. 1.073 Trillion

Major Expenditure Allocations

• Debt Servicing: Rs. 8.054 Trillion
• Defence Affairs: Rs. 3.000 Trillion
• Pension Allocation: Rs. 1.169 Trillion
• Subsidies: Rs. 1.091 Trillion
• Grants & Transfers: Rs. 2.680 Trillion

Debt servicing remains the largest expenditure item, highlighting the importance of fiscal reforms and efficient public financial management.

Public Sector Development Programme (PSDP)

The Federal PSDP has been allocated Rs. 1 trillion to support national development priorities and infrastructure projects.

• Transport & Communication Infrastructure
• Railways Development
• Water Resources Projects
• Information Technology Initiatives
• Education & Skills Development
• Healthcare Infrastructure

Social Protection Measures

The government continues to prioritize social welfare through programs aimed at poverty alleviation and support for vulnerable segments of society.

• Expansion of BISP Programs
• Support for Low-Income Households
• Women Empowerment Initiatives
• Financial Inclusion Measures

Education Sector Priorities

The budget emphasizes investment in education, professional training, and digital learning to build a future-ready workforce.

• Higher Education Support
• Technical & Vocational Training
• Digital Skills Development
• Research & Innovation

Healthcare Sector Focus

Healthcare spending aims to improve public health services, medical facilities, and healthcare accessibility across the country.

• Public Health Programs
• Hospital Infrastructure
• Disease Prevention Initiatives
• Medical Services Enhancement

What This Budget Means for Businesses

• Greater emphasis on documentation and compliance
• Technology and digital economy initiatives
• Support for SMEs and entrepreneurship
• Infrastructure improvements to facilitate growth
• Continued focus on exports and economic competitiveness

Economic Outlook for FY 2026-27

The government aims to achieve sustainable economic growth while maintaining fiscal discipline. Key priorities include increasing revenue collection, controlling inflation, improving public services, and encouraging private sector investment.

If implemented effectively, the Federal Budget 2026-27 can contribute significantly toward economic stability, business confidence, and long-term development.

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Disclaimer: This article is intended for informational and educational purposes only. Readers should refer to official budget documents, finance bills, and relevant laws before making financial, tax, or business decisions.