According to official sources, the Punjab government has decided to present the provincial budget for the upcoming fiscal year on June 13. The decision comes after the federal budget was tabled, enabling Punjab to begin finalizing its allocations and policy priorities.
No New Taxes, Modest Hike in Existing Rates
Sources reveal that the upcoming budget will not introduce any new taxes, with only a minimal increase in existing tax rates under consideration. The Punjab Revenue Authority is also expected to recommend the inclusion of non-taxpaying sectors to broaden the tax base.
10% Salary Increase Proposed for Public Servants
A 10% increase in salaries for government employees is proposed, in line with the federal government’s announcement. The pension increase at the federal level stands at 7%, while a reduction in income tax rates has also been suggested.
Major Allocations for Education, Health, and Public Services
The provincial budget will emphasize key public service sectors including law and order, education, health, and tourism. Notably:
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An additional PKR 110 billion is expected to be allocated for education, marking a significant rise compared to last year.
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The health budget is also set to grow by PKR 90 billion.
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Overall development expenditure may see an increase of up to 600%, according to budget insiders.
Furthermore, large-scale initiatives are expected in sanitation and clean drinking water, with several new schemes planned across Punjab.
Ambitious Rural Development Through Model Villages
In a landmark move, the Punjab government plans to transform 2,400 villages into model villages, with dedicated budget allocations:
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800 villages will be funded directly by the provincial government.
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1,600 villages will be supported through World Bank grants.
These model villages will feature improved sanitation systems, street lighting, and water supply infrastructure, with over 60% of Punjab’s rural areas expected to benefit in a phased manner.
Agricultural Support for Farmers
Recognizing the agricultural sector’s importance, the budget is likely to allocate additional funds for wheat and rice seeds, as well as fertilizers, aimed at supporting farmers and improving crop yields.
