Tax-Free Budget
LAHORE: The Punjab Assembly on Thursday approved a tax-free budget worth Rs5.33 trillion for the fiscal year 2025-26 with a majority vote. Alongside the budget, the Finance Bill 2025-26 was also passed.
Notably, the budget introduces no new taxes, maintaining the status quo in the province’s tax structure. There are no changes to provincial revenue streams, including property tax, transport tax, or sector-specific levies on industries such as agriculture, health, and education.
According to Punjab Finance Minister Mujtaba Shujaur Rehman, the focus of the budget is firmly on development. The government has allocated funds for 18 new projects across various sectors to stimulate economic activity without expanding the existing tax net. This approach reflects a strategy aimed at encouraging growth and maintaining stability.
Earlier, the assembly approved 41 demands for grants amounting to over Rs431 billion for various provincial departments. All eight cut motions presented by the opposition Pakistan Tehreek-e-Insaf (PTI) were rejected by the house.
Among the major allocations, more than Rs120 billion will be used for the construction of roads and bridges. A substantial Rs462 billion has been earmarked for pensions. The health sector is set to receive Rs258 billion, while Rs137 billion has been allocated for education. The police department will receive Rs200 billion to ensure law and order, and the jail administration will get over Rs27 billion. Civil defence services have been allocated Rs1 billion.
For the agriculture sector, Rs26 billion has been dedicated to farmer welfare, and Rs66 billion has been earmarked for agricultural loans. Irrigation projects will receive Rs37.96 billion, and industrial development initiatives have been allocated Rs18.22 billion.
Additionally, Rs161 billion will be spent on constructing and maintaining government buildings, Rs19 billion on veterinary services, and Rs1.6 billion on fisheries.
Other approved expenditures include funds for museums, judicial services, and various government registrations related to stamps, motor vehicle acts, and excise.
Finance Minister Rehman also introduced four bills during the session: the Punjab Autism School and Resource Centre Bill 2025, the Urban Immovable Property Tax Amendment Bill 2025, the Essential Commodities Price Control Amendment Bill 2025, and the Punjab Labour Courts Bill 2025. These bills were referred to the relevant standing committees, with a report requested within two months.
Treasury member Saeed Akbar Niwani raised an objection regarding the duplication of serial numbers 35 and 41 in the demands for grants. He suggested combining them for efficiency. Minister Rehman responded that although the PC-1s for these demands are different, he would consult with the department to check whether combining them is technically feasible.
The assembly session began over four hours later than the scheduled time and was chaired by Speaker Malik Muhammad Ahmad Khan. At the beginning of the session, MPA Munawar Ghous took the floor to condemn the actions of the CCD, alleging that a former councillor was arrested, handcuffed, paraded, humiliated, and filmed in public by a CCD DSP. He termed the incident a gross violation of the Constitution.
Speaker Khan acknowledged the seriousness of the matter and directed the Minister for Parliamentary Affairs to investigate, declaring the making and circulation of such videos a violation of court orders and legal norms.
The speaker also raised concerns about rising gun violence in Punjab, calling for the disarmament of the public. He urged the cabinet to address the issue, citing how personal enmities and widespread access to weapons are causing fear and violence, including incidents within court premises.
Minister Rehman responded that Chief Minister Maryam Nawaz is already working on initiatives to eliminate the gun culture and disarm the population as part of wider reforms.
