https://arab.news/cb6f5
- Punjab allocates $4.40 billion for development budget, $2.88 billion for education and $2.24 billion for health sectors
- Provincial government proposes increase in minimum wage from $131聽to $142聽per month
ISLAMABAD: Pakistan鈥檚 largest and richest Punjab province on Monday unveiled its Rs5.33 trillion [$18.9 billion] budget for the fiscal year 2025-26, increasing its development spending by 47% and refraining from imposing new taxes on the masses.
Punjab, home to more than half of Pakistan鈥檚 over 240 million people, plays a dominant role in the national economy. It contributes roughly 60% to Pakistan鈥檚 gross domestic product and receives the largest share of federal funds under the National Finance Commission (NFC) Award.
Last year, Punjab鈥檚 budget for FY2024鈥�25 was about $19.6 billion, with a development outlay of $3 billion. Punjab鈥檚 budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) party of Prime Minister Shehbaz Sharif, which has faced tough economic and governance challenges since forming its government at the center last year.
鈥淭he total outlay for [Punjab鈥檚] 2025-2026 budget is Rs5,335 billion [$19.2 billion],鈥� Punjab Finance Minister Mujtaba Shuja-ur-Rehman said while presenting the budget in the provincial assembly.
Rehman said the provincial government was presenting a 鈥渞ecord-breaking development budget鈥� this time.
鈥淔or which the total amount recommended is Rs1,240 billion [$4.36 billion], which is more than 47% compared to the current financial year,鈥� he added.
The minister said the FY26 budget did not contain any new taxes on the masses, adding that the government wanted to widen the tax net to increase revenue.
Punjab鈥檚 own-source revenue is projected at Rs828.1 billion ($2.94 billion), including Rs524.7 billion ($1.86 billion) in tax receipts and Rs303.4 billion ($1.08 billion) in non-tax receipts.
According to budget documents seen by Arab News, the Federal Board of Revenue (FBR) has set a national target of Rs14,131 billion ($50.11 billion), with Punjab鈥檚 share estimated at Rs4,062.2 billion ($14.4 billion).
Rehman said the province has proposed a significant increase in education and health budgets to benefit the people of Punjab.
HEALTH, EDUCATION BUDGETS
鈥淭he total allocation for the education sector is Rs811.8 billion ($2.88 billion), which is 21% higher than last year, where development allocation stands at Rs148.5 billion ($526 million), the highest in the province鈥檚 history and 127% higher than the previous year,鈥� he said.
He said Punjab would launch new education projects while continuing existing ones, allocating Rs15 billion ($53 million) for scholarships for high-achieving students and continuing with its Rs5.9 billion ($21 million) Undergraduate Scholarship Programme.
鈥淭o address infrastructure needs, Rs40 billion ($142 million) is set aside for building classrooms, while a Rs35 billion ($124 million) Education Delivery Programme aims to enhance access and quality across Punjab,鈥� Rehman said.
The minister said the provincial government has allocated Rs630.5 billion ($2.24 billion) for the health sector in this budget, which is 17% higher than last year.
鈥淥f this, Rs181 billion ($641 million) is earmarked for development, reflecting a 41% increase over the previous year,鈥� Rehman said.
The minister said Punjab had allocated Rs494 billion ($1.75 billion) for the social sector, which accounted for 40% of the development budget.
Rehman said provincial government employees鈥� salaries would be increased by 10%, while pensions have been raised by 5% and the proposed increase in the minimum wage is from Rs37,000 ($131) to Rs40,000 ($142) per month.
The minister said that the new budget has given special priority to Pakistan鈥檚 agriculture sector.
鈥淚n the next financial year, Rs123 billion ($436 million) are allocated for development in the agriculture, livestock, irrigation, and water sectors, while Rs56.2 billion ($199 million) is allocated for non-development expenses,鈥� he said.
The provincial minister said to ensure a climate-resilient Punjab, a record Rs795 billion (approximately $2.82 billion) worth of projects were included in the budget this year, accounting for 64% of the overall development budget.
Pakistan鈥檚 top revenue-generating Sindh province last Friday unveiled its Rs3.45 trillion ($12.41 billion) new budget while the northwestern Khyber Pakhtunkhwa (KP) province announced a surplus budget of Rs2,119 billion ($7.63 billion) for the next year on the same day.