Punjab Unveils Rs. 5,335 Billion Tax-Free Budget

Provincial Finance Minister Mian Mujtaba Shuja-ur-Rehman presented the Punjab budget for financial year (FY) 2025-26 with a total outlay of Rs. 5,335 billion including Rs. 1,240 billion for development programs, in the Punjab Assembly session on Monday. The minister said that the present government has allocated a total of Rs. 1,240 billion for development program that is 23 percent of the budget 2025-26 and is 47 percent higher than the current FY 2024-25 containing Rs. 842 billion on this count. In next FY budget, he said, estimated expenditures under Account-II (Food) have been reduced up to 88 percent (Rs. 53.3 billion) while compared with that of current fiscal year, which is clear proof of the best economic planning of the government, and that is why we have managed to overcome internal debts servicing by 94 percent. He said that health, education and other sectors. under the Social Sector have always been top priority of the PML-N government, that is why a hefty grant of Rs. 494 billion (40 percent of the ADP) have been earmarked for social sector. Giving break-up of the budget in his speech during the assembly session, the finance minister said that the total revenues collection is estimated at Rs. 4,890.4 billion, adding that under National Finance Commission (NFC), Punjab will receive Rs. 4,062.2 billion from the federal divisible pool, while provincial receipts (Own Resource Revenue) are estimated at Rs. 828.2 billion for financial year 2025-26. Regarding provincial receipts, he mentioned, Punjab Revenue Authority (PRA) has been given revenue collection target of Rs. 340 billion for the next FY, Board of Revenue Rs. 135.5 billion, and Excise Department Rs. 70 billion. Terming the provincial budget as tax-free, progressive and pro-business, Rehman added that during the financial year 2025-26, a total of Rs. 2,706.5 billion would be spent on under heads of provincial government employees’ salaries, pension, PFC transfers. and service delivery, asserting that these expenditures are reduced by six percent. Similarly, Rs. 590.2 billion under the head of Current Capital Expenditures is made part of the budget. Rehman said that Rs. 764.2 billion fund of provisional PFC Award (Provincial Finance Commission) have been allocated to empower the local governments, while Rs. 150 billion and Rs. 20 billion have been allocated as special grants for waste management and municipal corporations respectively. As per welfare state vision of Quaid-i-Azam Muhammad Ali Jinnah, he said, the Punjab government has set aside Rs. 70 billion package to provide social protection to the people. While maintaining the fiscal management, he mentioned, Rs. 470 billion EPS under the agreement between federal government and IMF, has been incorporated in the budget, adding that the completion of this provincial surplus is subject to achievement of FBR (Federal Board of Revenue) revenue target.