Punjab Finance Minister Mujtaba Shuja-ur-Rehman on Monday presented the provincial budget for the fiscal year 2025-26, unveiling a historic Rs5.335 trillion outlay that marks the highest development allocation in the province’s history.
Coming a week after the federal budget announcement, the Punjab government’s budget allocates Rs2.706 trillion for non-development expenditures, including pensions and salaries—a 6 percent increase from the previous year. The current capital expenditure has been set at Rs590 billion.
The development budget stands at a record Rs1.24 trillion, reflecting a 47 percent increase compared to Rs842 billion allocated in FY25. The minister described the budget as a “strategic shift” for Punjab, emphasizing the government’s commitment to accelerating growth and public welfare.
Key Allocations and Initiatives
The provincial government has earmarked Rs494 billion for the social sector, accounting for 40 percent of the development budget. Education receives Rs148 billion under development, alongside Rs661 billion for non-development expenses. Notable education initiatives include Rs15.1 billion for the Chief Minister’s Laptop Scheme, targeting 112,000 students, Rs40 billion for government school upliftment, Rs15 billion for the Merit Scholarship Programme, Rs5 billion for special education, and Rs25 billion for higher education.
Health remains a top priority with a total allocation of Rs630.5 billion, including Rs181 billion for development—a 131 percent increase—and Rs450 billion for non-development expenditures. The government plans to expand healthcare infrastructure, including the establishment of the Nawaz Sharif Institute of Cancer Treatment and Research in Lahore, budgeted at Rs72 billion.
Local bodies have been allocated Rs764.2 billion, with additional special grants of Rs150 billion for waste management and Rs20 billion for municipal corporations. A social security package worth Rs70 billion has also been proposed.
Provincial Surplus and Revenue Targets
The budget projects federal transfers to Punjab at Rs4,062.2 billion for FY26, while the province aims to generate Rs828.2 billion in own-source revenues. An estimated provincial surplus of Rs740 billion has been allocated, contingent on the Federal Board of Revenue’s (FBR) revenue targets and an understanding with the International Monetary Fund (IMF).
Opposition Protests and Government Highlights
The budget presentation was met with protests from opposition lawmakers of Pakistan Tehreek-e-Insaf (PTI). Despite this, the finance minister highlighted the government’s achievements, including the completion of 6,104 projects in the current fiscal year and praised the political and military leadership for safeguarding national interests amid recent tensions with India.
Development Projects and Future Plans
The budget includes over 850 development schemes, with a focus on health, education, infrastructure, and tourism. Key projects include the expansion of Nawaz Sharif Medical City in Lahore through public-private partnerships, extensive sanitation and clean drinking water initiatives, and continued infrastructure development across the province.
The provincial government has also indicated that the upcoming budget will be tax-free, with no new taxes introduced, aiming to stimulate economic growth and public welfare.
