LAHORE: The Punjab Assembly on Monday passed the provincial budget for the fiscal year 2025–26, approving the Rs5.3 trillion spending plan along with the Finance Bill 2025 and related grant demands, all by a majority vote.
Finance Minister Mian Mujtaba Shuja-ur-Rehman announced that the government had opted not to impose any new taxes, focusing instead on public relief and economic stability. The minimum monthly wage has been raised to Rs40,000, while government employees will receive a 10% salary increase and pensioners a 5% hike.
Key Legislative Reforms
The Assembly also passed several significant bills, including:
- Punjab Autism School and Resource Centre Bill 2025
- Urban Immovable Property Tax Amendment Bill 2025
- Essential Commodities Price Control Amendment Bill 2025
- Punjab Labour Courts Bill 2025
A major reform under the Finance Bill includes introducing a negative list mechanism for services taxation, aimed at broadening the tax base and enhancing provincial revenue generation.
Major Budget Allocations
Out of the total outlay, Rs4,329 billion was approved in demands for grants across 41 sectors, including:
- Rs462 billion for pensions
- Rs258 billion for health
- Rs137 billion for education
- Rs200 billion for police
- Rs910 billion for development projects
- Including Rs120 billion for roads and bridges
- Rs161 billion for public buildings
Agriculture and Industry
- Rs26.5 billion for agriculture
- Rs19 billion for veterinary services
- Rs1.6 billion for fisheries
- Rs66.2 billion allocated for agricultural loans
- Rs37.9 billion for irrigation
- Rs18.2 billion for industrial development
- Rs1.32 billion for civil defence
Fiscal Breakdown
Punjab expects to receive Rs4,060 billion from the federal divisible pool under the NFC Award, while targeting Rs828 billion in provincial revenue collection.
- Current expenditures: Rs2,706 billion
- Capital expenditures: Rs590 billion
Smooth Passage, Opposition Motions Rejected
All cut motions submitted by opposition members across eight departments were rejected. The budget was passed smoothly, with the government leveraging its strong majority in the house.
