Education and health prioritized, but long-term sustainability concerns persist
LAHORE – The Punjab government is set to unveil a Rs1,202 billion development budget for the fiscal year 2025–26, with major allocations aimed at boosting education, healthcare, and infrastructure. However, experts have raised concerns over the absence of a clear strategy for financial sustainability.
The Punjab Assembly will convene on July 16 to formally present the budget. The finalized draft, prepared by the Planning and Development (P&D) Department, outlines sector-wise allocations for various provincial departments and initiatives.
Key Sectoral Allocations
- Urban Development: Rs145 billion
- Local Government: Rs142 billion
- Road Sector: Rs120 billion
- Health & Population Welfare: Rs90 billion
- Agriculture: Rs80 billion
- Transport: Rs70 billion
- Specialized Healthcare: Rs70 billion
- School Education: Rs100 billion
- Higher Education: Rs25 billion
- Planning & Development / Governance & IT: Rs40 billion each
- Irrigation: Rs40 billion
- Public Buildings: Rs25 billion
- Industries: Rs12 billion
- Tourism: Rs30 billion
- Wildlife & Fisheries: Rs10 billion each
- Environment: Rs15 billion
- Skill Development: Rs12 billion
- Sports: Rs7.6 billion
- Energy: Rs7.5 billion
- Water Supply & Sanitation: Rs6 billion
- Price Control & Commodities Management: Rs5.51 billion
- Forestry & Livestock: Rs5 billion each
- Human Rights, Minority Affairs, and Literacy: Rs4 billion each
- Social Welfare: Rs3 billion
- Special Education: Rs2 billion
- Information and Culture: Rs5 billion
Funding Sources
The proposed development budget includes:
- Rs892.78 billion from local resources
- Rs184.49 billion through foreign funding
- Rs124.73 billion allocated for miscellaneous development initiatives
Focus vs. Sustainability
While the budget reflects a strong focus on critical public sectors such as education, health, transport, and urban development, critics point out the lack of a clear roadmap for long-term financial sustainability, particularly in light of rising provincial expenditures and limited revenue-generation mechanisms.
The upcoming budget session is expected to generate debate among lawmakers, with attention on both the scale of development ambitions and the province’s ability to maintain fiscal discipline.
