Health, culture get budget boost

Budget proposes Rs37b for health, Rs445m for heritage projects

ISLAMABAD:

The federal government has proposed allocations for cultural preservation and healthcare in the fiscal year 2026-27, earmarking Rs445 million for projects under the National Heritage and Culture Division and Rs37.438 billion for the health sector.

According to Public Sector Development Programme (PSDP) documents, the National Heritage and Culture Division's ongoing projects include the establishment of a Research and Development Centre in the Department of Archaeology and Museums to promote Pakistan's positive image through national heritage, the Aiwan-e-Noorat-e-Quaid-i-Azam at Mazar-i-Quaid, and the National Cultural Heritage Institute in Islamabad.

The total estimated cost of these three projects is Rs2,668.986 million, while expenditures of Rs59.740 million are expected by June 30, 2026. For the upcoming fiscal year, Rs445 million has been allocated for various projects of the division.

Meanwhile, the federal budget proposes Rs37.438 billion for the health sector, with the largest share of Rs28.779 billion allocated to hospital services. A further Rs7.417 billion has been earmarked for health administration, while Rs1.204 billion has been proposed for public health services and Rs38 million for medical equipment.

Meanwhile, the federal government has proposed tax relief for the salaried class in the Budget 2026-27 by reducing income tax rates across various slabs and abolishing the existing 10 per cent surcharge, a move expected to provide direct financial relief to millions of employees in both the public and private sectors.

Presenting the federal budget in the National Assembly, Finance Minister Muhammad Aurangzeb said the government was fully aware of the economic challenges faced by salaried individuals and, on the instructions of Prime Minister Shehbaz Sharif, had proposed substantial reductions in taxes for employees with different income levels to ease their financial burden.