Punjab Unveils Rs5,335 Billion Budget for 2025-26, Focuses on Development and Welfare

Strategic Insights -

The Punjab Finance Minister, Mujtaba Shuja ur Rehman, presented a Rs5,335 billion budget for the fiscal year 2025-26, focusing on development and public welfare. The budget includes a 47% increase in the Annual Development Programme (ADP), with Rs1,240 billion allocated for development projects. Provincial authorities describe the budget as reform-oriented and people-friendly, with no new taxes or tax rate increases, and a focus on expanding the provincial tax base.

Key Takeaways:

  • The Punjab government has allocated Rs1,240 billion for the Annual Development Programme (ADP), a 47% increase from the previous year.
  • The total budget size is Rs5,335 billion, with Rs2,706 billion allocated for non-development expenditure.
  • The government has announced a 10% salary hike for government employees and a 5% increase in pensions.
  • The budget focuses on expanding the provincial tax base, with no new taxes or tax rate increases.
  • The government has allocated Rs764.2 billion for Local Governments (PFC), Rs70 billion for Social Protection, and Rs35 billion for the Punjab Education Foundation.
  • The health budget is Rs631 billion, with Rs181 billion allocated for development projects and Rs450 billion for non-development projects.
  • The government has announced the launch of major infrastructure work in 64 cities and plans to develop 1,800 villages to urban standards.

Statistics:

  • Total budget size: Rs5,335 billion
  • Development budget: Rs1,240 billion (47% increase)
  • Non-development expenditure: Rs2,706 billion
  • Salary hike: 10%
  • Pension increase: 5%
  • Foreign funding and loans: Rs97.9 billion
  • Expected federal transfers: Rs4,062 billion
  • Provincial revenue target: Rs828.2 billion

Sources:

  • "Punjab Budget 2025-26" [1]
  • Interview with Punjab Information Minister Azma Bokhari [2]
  • Punjab Finance Department [3]