Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented Rs5.335 trillion provincial budget for the fiscal year 2025-26 during the Punjab Assembly session on Monday amid strong protests led by Opposition benches.
Out of this total, the development budget has been set at Rs1,240 billion, marking a significant 47.2% increase from Rs842 billion allocated in FY 2024–25. Rs 2,706.5 billion have been allocated for non-development expenditures, which include salaries, pensions, and service-related expenses.
The minister noted that only a 6% increase has been made in overall expenditures compared to the previous fiscal year, reflecting the government’s efforts to maintain fiscal discipline.
Total Provincial Consolidated Fund has been estimated at Rs5,335 billion, forming the backbone of the province's financial framework for the upcoming fiscal year.
Punjab’s Own Source Revenue is projected to be Rs828.1 billion, which includes Rs524.7 billion in tax receipts and Rs303.4 billion in non-tax receipts.
Federal Board of Revenue (FBR) has set a national target of Rs14,131 billion, with Punjab's share amounting to Rs4,062.2 billion.
Punjab Revenue Authority (PRA) is targeting Rs340 billion, showing a 13% increase from the previous year. Meanwhile, the Board of Revenue (BOR) aims to generate Rs105 billion. The Urban Immovable Property Tax is expected to contribute Rs32.5 billion to the provincial revenues.
Punjab has proposed its highest ever Annual Development Programme (ADP) allocation, amounting to Rs1,240 billion.
An estimated budget surplus of Rs740 billion has been projected, indicating prudent fiscal management with targeted subsidies worth Rs72.3 billion have been allocated, covering sectors such as agriculture, transport, health, and social welfare.
He said the Punjab government is presenting a record-breaking development budget, with Rs 1,240 billion proposed for development projects across various sectors.
Punjab has earmarked Rs171.7 billion for foreign-funded projects and programs, reinforcing partnerships with international development agencies and donors.
Interestingly, service delivery expenditure has been reduced to Rs679.8 billion, representing a 5.8% decrease from the previous year.
PFC (Provincial Finance Commission) transfers to local governments and authorities are projected to be Rs934.2 billion, emphasizing Punjab’s commitment to decentralization and grassroots empowerment. The education sector got Rs811.8 billion, up from Rs669.83 billion in FY 2024–25 – a 21.2% increase aimed at improving access, quality, and infrastructure across the province’s education system.
The health sector has received uplift with an allocation of Rs630.5 billion, reflecting a 17% increase over the previous year’s Rs539 billion. In agriculture – a backbone of Punjab’s economy – the budget allocation has grown to Rs129.8 billion, up 10.7% from Rs117.2 billion in FY 2024–25.
Salaries and pensions increased
Punjab government has proposed an increase of 10 percent in government employees' salaries.
On the other hand, the provincial government of PMLN and PPP has also announced to increase 5 percent in pensions of the retired government employees.
Minimum wage increased to Rs40,000
The government has increased the basic salaries of the labourer from Rs37000 to Rs40,000 in the provincial budget 2025-26.
Subsidies in various sectors
Education budget
Highlighting key education and welfare initiatives, he stated that over 50,000 students have been provided with laptops so far under the government's youth empowerment program. Additionally, he shared that with an investment of Rs3.5 billion, more than 400,000 children in over 3,500 public schools are now being provided with milk to ensure better nutrition and health for students across the province.
Punjab's Finance Minister announced that a total of Rs148 billion has been allocated under the development head for the education sector in the 2025–26 provincial budget.
The government plans to launch new educational projects while continuing work on ongoing initiatives. In a major boost for students, Rs 15 billion has been earmarked for scholarships for high-achieving students.
The minister also highlighted the continuation of the Undergraduate Scholarship Programme worth Rs 5.9 billion, which supports deserving university students.
To address infrastructure needs, Rs 40 billion has been allocated for the construction of additional classrooms in public schools across Punjab.
Additionally, a Rs 35 billion Education Delivery Programme has been included in the budget to improve access and quality of education throughout the province.
A major highlight is the inclusion of a Rs 35 billion Education Delivery Programme, aimed at improving access to education for low-income families. Under this initiative, the government will provide financial support to private schools to ensure children from underprivileged backgrounds can continue their education.
The School Meal Programme, designed to address child nutrition and school attendance, will be expanded to 8 districts at a cost of Rs7 billion. Rs 1.5 billion has been allocated to extend the school meal programme to special education institutions.
Recognizing the need for gender-inclusive education, the minister announced the construction of 8 new women’s colleges across Punjab to ensure equal opportunities for female students. Moreover, Rs 25 billion has been allocated for the development of universities across the province.
Health Sector
Healthcare also remains a top priority in the new budget. A total of Rs181 billion has been allocated under the development budget for the health sector. In addition, Rs450 billion has been set aside for non-development expenditures, ensuring the smooth functioning of healthcare services.
Significant investments are being made to enhance cancer treatment facilities. The Nawaz Sharif Institute for Advanced Cancer Treatment will receive Rs 14 billion, while Rs 12 billion has been allocated for the ongoing construction of a Rs 72 billion state-of-the-art cancer hospital.
Health initiatives
Punjab Finance Minister announced that a major healthcare initiative is underway with the establishment of the Nawaz Sharif Cancer Hospital in Lahore, at an estimated cost of Rs72 billion. state-of-the-art facility aims to provide specialized cancer treatment to patients from across the province.
Punjab's Finance Minister announced that Basic Health Units (BHUs) across the province are being upgraded into Maryam Health Clinics, aiming to enhance primary healthcare access for citizens.
Support for Livestock Farmers
Through a Rs4.4 billion Livestock Card initiative, livestock farmers have been provided with easy loans to support and expand their businesses.
Housing for the Underprivileged
Punjab government has launched the 'Apna Ghar Apni Chhat' housing scheme with a total allocation of Rs 85.5 billion, aimed at providing affordable housing to low-income families.
Infrastructure Development in Murree
Work is actively progressing on the Murree Development Programme at a cost of Rs 17 billion, focusing on improving tourism and civic facilities in the region.
Safe City Expansion
The Safe City Project has been expanded to 19 districts with an investment of Rs 5.6 billion, to enhance law enforcement and surveillance capacity.
IT Empowerment for Women
Modern IT courses are being introduced for women across Punjab, equipping them with in-demand digital skills to strengthen their presence in the workforce.
Green Public Transport Initiatives
In a move toward environmental sustainability, eco-friendly buses worth Rs 46 billion are being procured for multiple districts. Currently, 27 green buses are already operating on the roads of Lahore.
Youth Business & Sports Promotion
Under the Easy Business and Easy Business Finance Scheme, loans amounting to Rs 19 billion have been disbursed to aspiring entrepreneurs.
Moreover, Rs 6.1 billion has been allocated under the ‘Khelta Punjab Programme’, with various sports projects launched, including the establishment of High-Performance Cricket Centres in Sialkot and Faisalabad.
Business support schemes
Punjab’s Finance Minister announced that Rs19 billion in loans have been provided under the Easy Business Scheme and Easy Business Finance Scheme, aimed at empowering youth and small business owners across the province.
Sports budget
Under the Khelta Punjab Programme, which received an allocation of Rs 6.1 billion, several initiatives have been launched. High-Performance Cricket Centres have been established in Sialkot and Faisalabad to nurture athletic talent.
The minister claimed the 2025–26 budget will set new records for development in Punjab and is focused on the welfare and prosperity of the people.
He further stated that new cardiology centers are also being developed to strengthen cardiac care services. These include the Nawaz Sharif Institute of Cardiology in Sargodha and the Jinnah Institute of Cardiology, which will serve as key institutions for the diagnosis and treatment of heart-related diseases.
The finance minister began his speech by paying tribute to the armed forces, stating, "I salute the Field Marshal for giving a befitting response to Indian aggression," and praised the Air Chief for successfully downing Indian jets. He strongly condemned Israel’s attack on Iran and denounced what he described as Israel’s "genocide of Palestinians in Gaza."
On the domestic front, Shuja-ur-Rehman asserted that Punjab has entered a new phase of public service and technological advancement. “In the past, the public would knock on government doors for help. Today, the Punjab government is delivering relief, including the Ramazan Package, directly to the people,” he said. Highlighting key welfare initiatives, he stated that farmers now hold Kisan Cards, youth are empowered with laptops, and schoolchildren are being provided modern education along with nutritious meals and milk.
Punjab development projects
He proudly announced that 6,104 development projects were completed in just one year, with solid foundations laid for progress in every sector of the province.
“Roads are being constructed, industries are thriving, and the entire provincial system is now integrated with modern technology,” he said, adding that the government aims to elevate Punjab to the level of the world’s most advanced regions.
Commenting on the political leadership during times of crisis, the finance minister said the Pakistan Army achieved historic success and acknowledged the leadership role of Maryam Nawaz during the recent conflict period in Punjab.
He concluded by stating that in the past year, not a single scandal has emerged from any development project in Punjab, which, according to him, reflects transparent governance.
Opposition Leader
Opposition Leader in Punjab Assembly reacting to the new bill said after the passage of this bill, no one will be able to question where public money has gone," said the Opposition Leader.
"When you have the support of the people, such bills are not introduced," he added.
The leader said under this bill, complaints can only be registered with the Director General Public Relations (DGPR)."
After that, the complaint goes to the Secretary, whose decision will be final."
"No complaint can be taken to any court after the Secretary's decision. Tell me, what the need for this bill is after the PECA Act and the Defamation Bill?" the Opposition Leader questioned.
PA passes 5 bills in first session amid time constraints
Punjab Assembly convened its first session, during which five out of seven proposed bills were passed due to limited time.
Key legislation approved includes the Centre of Excellence on Countering Violent Extremism Punjab Bill, aimed at curbing radical ideologies and promoting peace-building initiatives in the province.
Other bills passed by majority vote are: Punjab Consumer Protection (Amendment) Bill 2025 – to strengthen consumer rights and regulatory enforcement.
Boilers and Pressure Vessels (Amendment) Bill 2025 – introducing enhanced safety standards for industrial equipment.
Specialized Medical Institutions Punjab (Amendment) Bill 2025 – focusing on improving governance and performance of specialized healthcare facilities.
Punjab Awareness and Information Provision Bill 2025 – to ensure timely access to public information and promote transparency.
The remaining two bills will be addressed in the next assembly sessions.
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