Tuesday, June 17, 2025

Budget 2025-26: Punjab announces tax-free Rs5.35 trillion budget

Finance Minister of Punjab Mujtaba Shuja ur Rehman delivered a Rs5.3 trillion budget for 2025–26, referring to it as a public-focused strategy aligning with the vision of CM Punjab, Maryam Nawaz Sharif’s development programs.

The cabinet approved the budget ahead of the session, stressing transparency and trust. CM Punjab Maryam Nawaz reveals a 47% increase in the Annual Development Programme (ADP), up to Rs1240 billion.

She mentions that new taxes have been avoided and, instead, expansion of the tax base is focused in the budget. Financial discipline, e-tendering, and transparency were emphasized, while focusing on areas for improvement in the Punjab Revenue Authority.

The budget highlights new goals and achievements, including the initiation of 100 development projects, 94 new public programmes, and the construction or extension of 12,000 kilometers of roads. CM further says “currently 700 projects are under construction.”

Budget 2025-26: Punjab Announces Tax-Free Rs5.35 Trillion Budget
CM Punjab Maryam Nawaz signing the approval of Budget 2025-26 — Express Tribune/file

The plan also covers free medications, school improvements, a minimum wage of Rs40,000, and efforts to modernize wage payment systems. These are all pieces of a larger goal to enhance public services and strengthen governance across the province.

CM further says “We declared an emergency in Punjab. We achieved IMF conditions and still delivered a surplus of Rs740 billion in budget”. A potential performance-based bonus for civil servants was mentioned, stating that the local borrowing has dropped up to 94%.

Calling the 2025–26 budget a “historic public service package,” CM Maryam concluded, “The work ethic in Punjab has transformed. Power is a trust from God; serving people is our mission.”

Senior Minister Marriyum Aurangzeb and Finance Minister Mujtaba Shuja ur Rehman provided detailed updates. Aurangzeb noted on X that the Annual Development Programme grew 47%, from Rs842 billion to Rs1,240 billion, despite tight fiscal constraints, with operational costs rising only 3%.