LAHORE – The Punjab Assembly has approved the provincial budget for the fiscal year 2025-26 amounting to Rs 5,300 billion by a majority vote. The Finance Bill 2025 was also passed with no new taxes introduced, maintaining the existing tax structure. The minimum monthly wage has been set at Rs 40,000.
Punjab Finance Minister Mujtaba Shuja-ur-Rehman presented four key bills: the Punjab Autism School and Resource Centre Bill 2025, the Urban Immovable Property Tax Amendment Bill 2025, the Essential Commodities Price Control Amendment Bill 2025, and the Punjab Labour Courts Bill 2025.
The approved budget introduces no changes to provincial revenue taxes, property tax, or transport tax, and no additional taxes have been imposed on sectors like industry, agriculture, health, or education. The budget includes new development projects across 18 sectors.
Major Budget Highlights:
Demands for Grants: The assembly approved demands exceeding Rs 4,329 billion, while all cut motions submitted by the opposition concerning eight departments were rejected.
Sector-wise Allocations:
Police: Rs 200.10 billion
Health: Rs 258.97 billion
Education: Rs 137.53 billion
Pensions: Rs 462.16 billion
Development Projects: Rs 910 billion
Roads and Bridges: Rs 120 billion
Government Buildings: Rs 161 billion
Agriculture: Rs 26.53 billion
Veterinary Services: Rs 19 billion
Fisheries: Rs 1.6 billion
Prisons and Judiciary: Billions allocated for jails, museums, and justice delivery
Grants were also approved for registration, stamps, motor vehicles, excise departments, subsidies, investments, civil defense, and local government loans.
Taxation Framework:
Punjab has introduced a negative list concept for services taxation in the Finance Bill 2025-26. This approach is expected to boost provincial tax collection and broaden the tax base.
Salary and Pension Adjustments:
The government has approved a 10% increase in salaries and a 5% rise in pensions. Specific allocations include:
Civil Defense: Rs 1.32 billion
Farmers’ Welfare: Rs 26.53 billion
Agricultural Loans: Rs 66.21 billion
Industrial Development: Rs 18.22 billion
Irrigation Projects: Rs 37.96 billion
Under the NFC Award, Punjab will receive Rs 4,060 billion. The province’s own revenue is projected at Rs 828 billion, with current expenditures of Rs 2,706 billion and capital expenditures of Rs 590 billion.
