Rs5.3 Trillion Budget
LAHORE: The Punjab government is set to unveil its much-anticipated provincial budget for the fiscal year 2025–26 on Monday (tomorrow), with a total outlay expected to exceed Rs5,300 billion, on Sunday.
According to official sources, a significant portion of the budget—approximately Rs4,060 billion—will be allocated toward non-development expenditures. These expenses typically include salaries, pensions, debt servicing, and other recurring operational costs necessary for the functioning of the provincial government.
Meanwhile, the development side of the budget, known as the Annual Development Programme (ADP), is projected to receive Rs1,240 billion. The ADP includes a total of 3,132 development schemes across Punjab, which reflect the provincial government’s priorities in areas such as infrastructure, education, health, and public welfare.
Of the total development budget, Rs535.98 billion has been earmarked for 1,441 ongoing schemes, indicating the government’s commitment to completing previously initiated projects.
An additional Rs470.62 billion will be used to fund 1,663 new development projects, showcasing an aggressive expansion in infrastructure and service delivery. Furthermore, Rs233.40 billion will be allocated to 28 long-standing development schemes that require renewed funding for completion.
The funding for the development budget will primarily be sourced from local revenues, with Rs1,115.70 billion to be raised domestically. However, the government is also relying on external support, with Rs124.30 billion expected to come from foreign assistance and donor agencies.
Punjab’s budget follows closely on the heels of recent budget announcements by Sindh and Khyber Pakhtunkhwa, which presented their fiscal plans shortly after the federal budget was tabled.
In related fiscal developments at the national level, the Federal Board of Revenue (FBR) is proposing an increase in the tax-free cash withdrawal limit for non-filers under the Finance Bill 2025–26.
Previously, non-filers could withdraw up to Rs50,000 per day without incurring a tax penalty. Under the new proposal, this limit will be raised to Rs75,000 per day. However, a higher withholding tax of 0.8% (up from the current 0.6%) will be applied to withdrawals exceeding this limit.
The FBR claims this measure is aimed at enhancing tax compliance and improving documentation within the financial system. The proposal was shared during a briefing with the National Assembly Standing Committee on Finance, where it received mixed responses.
With the Punjab budget presentation just hours away, all eyes are now on the provincial assembly as it prepares to lay out the government’s spending and development priorities for the upcoming fiscal year.
