During a fiery session of the Punjab Assembly on Monday, Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman tabled the long-awaited Punjab provincial budget 2025-26, putting the total outlay at a record Rs5.335 trillion.
But for all the noise and din at the opposition benches, the finance minister unveiled a development-focused master plan of developing infrastructure, public services, and social welfare.
The Punjab province budget 2025-26 has a whopping Rs1,240 billion earmarked for development projects — a whopping 47.2% increase over last year’s Rs842 billion. This is the largest ever development expenditure by the province, indicating a big push for economic recovery and public service enhancement.
However, Rs2,706.5 billion has been allocated for non-development spending like salaries, pensions, and utilities. The government insists this is a managed 6% increase in overall outlays from the previous year, representing its commitment to fiscal prudence.
Revenue and surplus
Punjab’s own-source revenue is projected to be Rs828.1 billion, comprising Rs524.7 billion in tax and Rs303.4 billion in non-tax collections. The provincial share from the federal divisible pool is Rs 4,062.2 billion. The Punjab Revenue Authority (PRA) aims for Rs340 billion — a 13% increase — and the Urban Immovable Property Tax is projected at Rs32.5 billion.
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A stupendous budget surplus of Rs740 billion has also been estimated, in addition to targeted subsidies of Rs72.3 billion in direction towards agriculture, health, transport, and social sectors.
Major sectoral allocations
Education
The education sector was the primary area of concentration, where Rs811.8 billion — an increase of 21.2% — was allocated. Rs148 billion has been allocated for the development projects, such as Rs40 billion for the construction of classrooms, Rs35 billion for the Education Delivery Programme, and Rs15 billion for merit scholarships. The government will also expand its School Meal Programme to 8 districts, backed by Rs7 billion, and establish 8 new women’s colleges.
Health
The health sector received Rs630.5 billion, out of which Rs181 billion was in the form of development funds. Key initiatives are the Rs72 billion Nawaz Sharif Cancer Hospital in Lahore, Rs14 billion for cancer treatment centers, and improvement of Basic Health Units to Maryam Health Clinics.
Agriculture and livestock
Funds for agriculture increased to Rs129.8 billion, whereas livestock farmers will be helped by the Rs4.4 billion Livestock Card scheme providing interest-free business loans.
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Youth and business support
Through the Easy Business Scheme, Rs19 billion in loans have been given to young businessmen. The ‘Khelta Punjab Programme’ also received a Rs6.1 billion injection, opening new sports complexes and high-performance cricket facilities in Faisalabad and Sialkot.
The government has launched the ‘Apna Ghar Apni Chhat’ housing scheme with Rs85.5 billion for low-income families. Rs17 billion has been set aside for Murree’s tourism uplift, while the Safe City Project will now expand to 19 districts with Rs5.6 billion funding.
Infrastructure and technology
In the digital sector, the government is initiating IT training schemes for women and has already disbursed more than 50,000 laptops under its youth empowerment policy.
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Wages, pensions, and social welfare
An increase of 10% in government wages and a 5% rise in pensions for retired workers was announced. The minimum wage has been increased from Rs37,000 to Rs40,000 per month. These measures are designed to counteract inflationary pressures and enhance living standards.
Legislative moves amid drama
The session also saw five bills passed, such as the Punjab Consumer Protection (Amendment) Bill and the Punjab Awareness and Information Provision Bill, to further enhance transparency and public service delivery. Still, the Opposition raised concerns over law that may be limiting public complaints, complaining that such actions suppress democratic oversight.
