Punjab Unveils Rs5,335 Billion Budget for FY 2025–26 with Historic Development Focus
LAHORE – Punjab Finance Minister Mujtaba Shuja ur Rehman presented the province’s Rs5,335 billion budget for the fiscal year 2025–26 in the Punjab Assembly on Monday, describing it as a “people-friendly” and development-oriented plan aligned with the vision of Chief Minister Maryam Nawaz Sharif.
The budget, approved during the 27th meeting of the provincial cabinet, includes no new taxes and introduces a record increase in the Annual Development Programme (ADP).
Key Highlights of the Punjab Budget 2025–26
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Total Budget: Rs5,335 billion
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Annual Development Programme (ADP): Rs1,240 billion (47% increase)
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New Taxes Introduced: None
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Minimum Wage: Set at Rs40,000
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Budget Surplus: Rs740 billion
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Operational Expenses Increase: Limited to 3%
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Local Borrowing Reduction: 94%
CM Maryam Nawaz: “Public Service at the Heart of Our Mission”
In her address to the cabinet, Chief Minister Maryam Nawaz Sharif described the budget as a reflection of public trust and transparency. “Every rupee is a trust from the people and a responsibility before God,” she said, calling the budget a “historic public service package.”
She announced several ambitious goals, including:
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700 road projects currently under construction
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Construction and improvement of 12,000 kilometers of roads
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Launch of 100 innovative development projects and 94 new public programmes
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Free medicines in public hospitals
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Upgrades in education infrastructure
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Implementation of digital wage systems for improved efficiency
The Chief Minister emphasized the zero-tax policy, improved financial discipline, and increased transparency through e-tendering and good governance practices. She also signaled a performance-based bonus system for civil servants.
A Strategic Shift in Development Priorities
Senior Minister for Planning & Development Marriyum Aurangzeb shared further insights on social platform X, noting that the ADP has increased significantly despite limited fiscal space. She praised the leadership for prioritizing strategic planning over traditional models, describing the budget as a “departure from outdated approaches.”
She highlighted that while development spending grew substantially, government operational expenses were tightly controlled—even as salaries and pensions were increased.
Focus on Revenue Reforms
Chief Minister Maryam Nawaz also expressed her intent to broaden the tax net without burdening citizens with new taxes. She called for improvement in the performance of the Punjab Revenue Authority, aiming for greater efficiency in tax collection and compliance.
A Budget for Growth and Stability
This year’s budget not only emphasizes development and infrastructure but also showcases a commitment to fiscal responsibility. With a Rs740 billion surplus, the Punjab government under Chief Minister Maryam Nawaz is positioning itself to meet domestic and international financial expectations, including IMF requirements, while keeping public welfare at the forefront.
