Punjab Budget 2025–26: Rs 5.335 Trillion Budget Prioritizes Development and Social Protection
Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented a Rs 5,335 billion budget for FY 2025–26, with Chief Minister Maryam Nawaz Sharif presiding over the cabinet session that approved the province’s largest-ever development allocation of Rs 1,240 billion. This marks a 47% increase over FY 2024–25 and accounts for 23% of the total budget.
Revenue and Receipts
Total revenue collection is projected at Rs 4,890.4 billion. Punjab will receive Rs 4,062.2 billion from the federal divisible pool under the NFC Award, while provincial receipts are estimated at Rs 828.2 billion. The Punjab Revenue Authority (PRA) has been given a target of Rs 340 billion, followed by Rs 135.5 billion for the Board of Revenue and Rs 70 billion for the Excise Department.
Expenditures and Fiscal Discipline
The government will allocate Rs 2,706.5 billion for salaries, pensions, PFC transfers, and service delivery—a 6% decrease from the current fiscal year. Rs 590.2 billion is reserved for current capital expenditures. Expenditures under Account-II (Food) have been reduced by 88% to Rs 53.3 billion, enabling a 94% cut in internal debt servicing. The Rs 470 billion Estimated Provincial Surplus (EPS), under an agreement with the IMF, is contingent on achieving FBR’s revenue target.
Empowering Local Governance
The provisional PFC Award stands at Rs 764.2 billion to empower local bodies, with Rs 150 billion for waste management and Rs 20 billion for municipal corporations.
Social Sector and Welfare Initiatives
The government has earmarked Rs 494 billion (40% of the ADP) for the social sector, including health and education. CM Maryam Nawaz announced a 10% salary increase for government employees and a 5% pension raise. The minimum monthly wage has been increased from Rs 37,000 to Rs 40,000. A Rs 70 billion social protection package has been introduced to support vulnerable populations.
Sector-Wise Allocations
- Education: Rs 811.8 billion
- Health: Rs 630.5 billion
- Local Government & Community Development: Rs 411.1 billion
- Police: Rs 210.1 billion
- Housing & Public Health Engineering: Rs 245.7 billion
- Roads: Rs 120 billion
- Transport: Rs 141.5 billion
- Agriculture: Rs 129.8 billion
- Environment Protection: Rs 16.6 billion
- Forests, Wildlife, Fisheries: Rs 36 billion
Flagship Health Projects
- Rs 79.5 billion for free medicines
- Rs 61 billion for Nawaz Sharif Medical District
- Rs 14.5 billion for Nawaz Sharif Cancer Hospital
- Rs 25 billion for health insurance
- Rs 9.4 billion for Jinnah Institute of Cardiology
- Rs 4.5 billion for Nawaz Sharif Institute of Cardiology (Sargodha)
- Rs 6 billion for Children’s Hospital Rawalpindi
- Rs 3.6 billion for transplant program
- Rs 3.2 billion for children’s heart surgery
- Rs 8.6 billion for dialysis program
- Rs 9.7 billion for health clinics
- Rs 3.5 billion for Clinic on Wheels
Development and Infrastructure Projects
- Rs 50 billion for Apni Chhat, Apna Ghar housing scheme
- Rs 35 billion each for Ramazan Package and governance/IT reforms
- Rs 85 billion for Lahore Development Program
- Rs 25 billion for Punjab Development Program
- Rs 10 billion for Model Village Project
- Rs 15.5 billion for CM Tractor Scheme
- Rs 28 billion for mass transit in Faisalabad, Lahore, Gujranwala
- Rs 15 billion for tube wells and Kisan Card
- Rs 20 billion for water reservoirs
- Rs 11.5 billion for Safe City Project
Youth, Education, and Inclusion
- Rs 40 billion for schools
- Rs 18 billion for government universities
- Rs 15 billion for Honhar Scholarship Program
- Rs 15 billion for Laptop Scheme
- Rs 40 billion for Ration Card Scheme
- Rs 10 billion for Sahulat Bazaars
- Rs 9.4 billion for free textbooks
- Rs 7 billion for School Meal Program
Arts, Minorities, and Cultural Initiatives
- Rs 5 billion for Film Finance Fund
- Rs 3.6 billion for Minority Card
Administrative Measures
The CM ordered registration of all wedding halls, restaurants, and marquees by July 20 and mandated digital wage payments and safety gear for laborers.
The Punjab Budget 2025–26 is the most expansive in the province’s history. It combines fiscal discipline with ambitious development goals, social protection, public health, education, and youth empowerment—setting the stage for a transformative year under CM Maryam Nawaz’s leadership.
