Punjab Unveils Rs 5.3 Trillion Tax-Free Budget Focused on Welfare and Growth

The Government of Punjab has announced the Punjab Budget 2025–26, valued at a remarkable Rs 5.335 trillion. With this budget Punjab govt claims that they focus on public welfare, social justice, and sustainable development, under the leadership of Chief Minister Maryam Nawaz Sharif. In the Punjab Budget 2025–26, the government has announced a zero-tax policy and plans to allocate funds for strategic investments in education, healthcare, infrastructure, and social protection. In a significant relief to the public and businesses, the Punjab Budget for FY 2025–26 introduces no new taxes. Instead, the government is expanding its tax base through better compliance, digitization, and property valuation reforms. This step supports economic growth without burdening citizens or investors — a move lauded across sectors. The Annual Development Programme (ADP) has been allocated Rs 1.24 trillion, reflecting a staggering 47% increase from the previous year. This allocation marks the largest development budget in Punjab’s history, supporting over 850 ongoing and new development projects. These include large-scale infrastructure initiatives, urban uplift programs, rural connectivity, clean water supply, housing schemes, and green development. The Punjab Budget 2025–26 emphasizes education reform with a dual focus on access and quality. The development allocation for education stands at Rs 148 billion, while Rs 661 billion has been earmarked for operational costs. Key initiatives include: Healthcare remains a cornerstone of the Punjab Budget. With Rs 450 billion allocated for operational costs and Rs 181 billion for development, this budget will transform the province’s medical infrastructure. Major healthcare provisions include: This health-first budget also supports public-private partnerships, hospital digitalization, and healthcare worker training. The Punjab Budget 2025–26 is distinctly people-centric, with 73% of total expenditure dedicated to public welfare and inclusive growth. It includes programs that support low-income families, women, youth, and rural communities. Highlights: The budget prioritizes connectivity and infrastructure through investments in: These measures are expected to create thousands of jobs and stimulate regional economic activity. Despite the expansive spending, Punjab aims for a budget surplus of Rs 740 billion, aligning with IMF-supported fiscal targets. This is paired with a 94% reduction in borrowing from previous years — showcasing a model of fiscal prudence. The province plans to finance development through improved own-source revenue generation, better public financial management, and international donor support for social projects. Chief Minister Maryam Nawaz Sharif stated: “Every rupee in this budget is a public trust. This is a transparent, accountable, and transformative budget that ensures inclusive development without burdening the people.” Finance Minister Mujtaba Shuja-ur-Rehman added: “This budget delivers relief, growth, and reform — with no tax increases, maximum public benefit, and real investment in our future.” The Punjab Budget 2025–26 is more than just a financial document — it’s a comprehensive vision for a stronger, smarter, and more sustainable Punjab. With its zero-tax strategy, unprecedented investments in social sectors, and disciplined fiscal management, this budget reflects the new leadership’s people-first approach and commitment to long-term progress. From urban centers to rural heartlands, the impact of this budget will be felt across Punjab — setting a gold standard for provincial governance in Pakistan.