A projected fiscal surplus of Rs740 billion and targeted subsidies worth Rs72.3 billion were also announced.
Punjab Presents Rs5.3 Trillion Budget with Major Push for Development. Punjab Finance Minister Mujtaba Shuja-ur-Rehman is presenting record Rs5,335 billion budget for fiscal year 2025–26 in the Punjab Assembly on Monday, as opposition lawmakers protested loudly throughout the session.
The budget session saw heavy sloganeering and desk-thumping from opposition benches, who accused the government of ignoring public grievances and failing to provide economic relief to the masses. Despite the uproar, Mujtaba Shuja delivered the budget speech, outlining key development priorities and financial targets under the leadership of Chief Minister Maryam Nawaz Sharif.
Punjab Budget 2025
Amid the noise, the finance minister announced a 10% raise in salaries for government employees and a 5% hike in pensions. He also highlighted a substantial 47.2% increase in the development budget — amounting to Rs1,240 billion — with major allocations for education, health, agriculture, and infrastructure.
The education sector’s allocation was raised to Rs811.8 billion (a 21.2% hike), while health received Rs630.5 billion — up 17% from last year. Agriculture was also prioritized, with Rs129.5 billion earmarked to support farmers and enhance productivity.
Mujtaba Shuja emphasized the budget’s focus on fiscal discipline, with current expenditures pegged at Rs2,026.7 billion and service delivery costs slashed by 5.8%. Local governments are set to receive Rs934.2 billion.
The finance minister said Punjab aims to generate Rs828.1 billion in provincial revenue, including Rs524.7 billion in tax receipts. The Punjab Revenue Authority’s target has been increased to Rs340 billion, and the Board of Revenue is expected to collect Rs105 billion.
A projected fiscal surplus of Rs740 billion and targeted subsidies worth Rs72.3 billion were also announced.
Despite the ruckus, the budget was formally laid before the house, with government members lauding it as a “people-friendly and development-focused” plan, while opposition leaders termed it a “political eyewash.”
In his address, the minister stated that like the previous year, this budget remains tax-free. He praised Pakistan’s recent military success against India, saluted Prime Minister Shehbaz Sharif and Army Chief Gen. Asim Munir, and condemned Israeli aggression while expressing solidarity with Iran and Palestine.
Highlighting progress under PML-N leadership, Shuja-ur-Rehman said CM Maryam Nawaz has made Punjab a model of development, citing welfare schemes like the Ramadan ration package, free laptops for youth, scooters for girls, Wi-Fi access, and improved public schooling.
Key Announcements and Sectoral Allocations:
• Development Budget: A record Rs1,240 billion development budget announced—the largest in Punjab’s history.
• Social Sector: Rs494 billion allocated, including Rs148 billion for education and Rs181 billion for health.
Education:
o Rs15 billion for scholarships.
o Rs15.1 billion for CM Laptop Scheme (112,000 more laptops).
o Rs40 billion for public school improvement.
o Rs35 billion to upgrade Punjab Education Foundation schools.
o Rs670 million to establish Punjab’s first autism school.
o 8 new women’s associate colleges to be established.
o Rs8 billion earmarked for universities.
• Health:
o Rs450 billion in public health development.
o Nawaz Sharif Cardiology Institute in Sargodha: Rs8.6 billion.
o Burn units in Bahawalpur and Rahim Yar Khan: Rs4 billion.
o Air ambulances operating across seven motorways.
o Rs56 billion allocated for women’s medicine delivery program.
o 20,000 heart surgeries conducted and diagnostic equipment upgraded.
• Agriculture and Livestock:
o Rs80 billion for agricultural uplift.
o Rs9 billion interest-free loans through Kisan Card.
o 9,500 tractors distributed.
o Rs2 billion for Rescue Stations in major tehsils.
o 2,950 acres of plantation completed.
• Environment & Infrastructure:
o Rs10 billion for strengthening the Environmental Protection Department.
o Pollution reduction measures achieved noticeable impact.
o Rs85.5 billion for the “Apni Chhat Apna Ghar” housing scheme.
o 12,000 km of road construction completed.
o Over 70 highways reconstructed.
o 27 electric buses launched in Lahore.
• Youth & Employment:
o Rs19 billion for Easy Business Scheme.
o 45 projects launched under the “Khelta Punjab” sports program.
o 9 million families digitally registered for government services.
o IT training for women to boost digital empowerment.
Shuja-ur-Rehman said last year’s budget successfully delivered landmark projects with no corruption scandals. GDP growth improved, inflation dropped to a decades-low level, interest rates fell from 22% to 11%, and forex reserves reached $16.6 billion. The government ensured reduced borrowing while allocating Rs70 billion for underprivileged segments.
