What Is the Total Size of Pakistan's 2026-27 Budget?
The headline figure, what it includes, and how it compares with last year
By the ISN Media desk • June 2026 • Approx. 5-min read
This is a short, factual answer to a common question about Pakistan's federal budget for the financial year 2026-27. The figures are Budget Estimates from the Government of Pakistan, in billions of rupees. For the full guide, see Pakistan's federal budget 2026-27, where every rupee goes.
What is the total size of Pakistan's 2026-27 budget?
The total size of Pakistan's federal budget for 2026-27 is about Rs 18,771 billion, an increase of about 6.8 percent over the previous year's outlay of Rs 17,573 billion. This is the total federal outlay, the sum of all the federal government plans to spend, including debt interest, defence, transfers, subsidies, the cost of running the government and the development programme.
How the total breaks down
Of that Rs 18,771 billion, the largest single item is debt interest at about Rs 8,054 billion, followed by defence at about Rs 3,000 billion. The remainder covers grants and cash support, pensions, subsidies, the running of the government and development, with education, health and the environment at the bottom.
Where the Rs 18,771 billion goes, reduced to a single Rs 100 note.
Is the increase real or just inflation?
Much of the 6.8 percent increase reflects inflation rather than more real spending. Because prices rose over the same period, a budget that grows roughly in line with inflation is, in real terms, close to flat. The economy as a whole, measured as nominal gross domestic product, is projected at about Rs 143,604 billion, so the budget is a little over 13 percent of the size of the economy.
How it relates to revenue
The total outlay is larger than the revenue the federal government keeps. After collecting about Rs 20,600 billion and transferring about Rs 8,848 billion to the provinces, the centre retains about Rs 11,751 billion of its own. Because it plans to spend far more than that, the difference is met by borrowing, which is why the budget also records a large deficit.
Frequently asked questions
What is the total size of Pakistan's 2026-27 budget? About Rs 18,771 billion, up about 6.8 percent from Rs 17,573 billion the previous year. This is the total federal outlay across all spending heads.
Is the budget bigger in real terms? Only marginally. The 6.8 percent increase is close to the rate of inflation, so in real terms the budget is close to flat.
How big is the budget relative to the economy? The budget of Rs 18,771 billion is a little over 13 percent of projected GDP of about Rs 143,604 billion.
What is the largest item in the budget? Debt interest, at about Rs 8,054 billion, or roughly 43 percent of the total, followed by defence at about Rs 3,000 billion.
Why does the budget exceed what the government keeps? After transferring about Rs 8,848 billion to the provinces, the centre keeps about Rs 11,751 billion but plans to spend much more, so it borrows to cover the difference.
What is the federal deficit in the 2026-27 budget? The federal budget deficit is about Rs 7,020 billion, while the overall fiscal deficit is targeted at about 3.6 percent of GDP, down from 3.9 percent the previous year.
How much does Pakistan plan to borrow from banks? Planned bank borrowing rose to about Rs 4,012 billion in 2026-27, roughly double the previous year, the largest single source of deficit financing.
Sources and notes
- Government of Pakistan, Federal Budget 2026-27: Budget in Brief. All figures are Budget Estimates in billions of rupees, rounded for readability.
ISN MEDIA