Islamabad, 16 June 2025: Punjab Budget deliberations concluded with a key meeting chaired by Punjab Chief Minister Maryam Nawaz, where the provincial cabinet formally approved the financial blueprint for the fiscal year 2025–26.
During the cabinet session held in Lahore, the government greenlit the Punjab Budget with a total outlay of Rs5,335 billion, outlining an ambitious agenda for development, social welfare, and economic stability. The budget is set to be presented in the second session of the Punjab Assembly today.
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Among the major highlights, a 10% salary increase for government employees and a 5% hike in pensions have been approved, offering financial relief amid inflationary pressures.
The development budget has seen a historic 47.2% rise, with Rs1,240 billion allocated for uplift projects across key sectors. Additionally, Rs171.7 billion has been earmarked for foreign-funded initiatives.
The province’s current expenditure has been set at Rs2,026.7 billion, reflecting a 5.9% increase from the previous year. Notably, the cost of service delivery has been trimmed by 5.8%, bringing it to Rs679.8 billion.
Transfers to local governments have been fixed at Rs934.2 billion, strengthening grassroots governance.
Key sectoral allocations include:
- Education: Rs811.8 billion (up 21.2%)
- Health: Rs630.5 billion (up 17%)
- Agriculture: Rs129.5 billion (up 10.7%)
From the federal divisible pool, Punjab expects a share of Rs4,062.2 billion, in line with the FBR’s overall revenue target of Rs14,131 billion.
Punjab’s own revenue target has been set at Rs828.1 billion, comprising Rs524.7 billion in tax revenue and Rs303.4 billion in non-tax revenue. The Punjab Revenue Authority (PRA) is projected to collect Rs340 billion, marking a 13% increase, while the Urban Immovable Property Tax target is fixed at Rs32.5 billion.
The budget projects a surplus of Rs740 billion, with targeted subsidies worth Rs72.3 billion.
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Additionally, the Board of Revenue’s collection target has been set at Rs105 billion, aimed at strengthening land revenue and property tax mechanisms.
Punjab Budget 2025–26 sets the stage for robust economic reforms, with record development allocations and prudent fiscal planning at its core.
