LAHORE: The Punjab Assembly on Thursday formally approved a substantial tax-free budget of Rs5.335 trillion for the upcoming fiscal year 2025-26. The budget, along with the Finance Bill 2025-26, was passed without introducing any new taxes, maintaining the existing tax structure across various sectors including property, transport, industries, agriculture, health, and education.
The budget session, presided over by Speaker Malik Muhammad Ahmad Khan, saw the Assembly approve grants totaling Rs3,667.71 billion for 36 provincial departments. This comes after five additional demands for grants, amounting to Rs638.29 billion, had already received approval on June 25. All approved allocations are set to take effect from July 1, 2025. Opposition-tabled cut motions, challenging allocations for key sectors like police, education, health, agriculture, and public health, were ultimately rejected by a majority vote.
Key Allocations and Development Focus
The budget outlines significant allocations across vital sectors, reflecting the provincial government’s priorities:
Pensions: Rs462 billion
Development Projects: A record Rs910 billion (other sources indicate this figure to be Rs1.24 trillion, an unprecedented 47.3% increase over the previous year’s Annual Development Program)
Police: Rs200.10 billion
Health Services: Rs258.97 billion (other sources indicate Rs630.5 billion total health budget including Rs181 billion development)
Education: Rs137.53 billion (other sources indicate Rs148 billion for development and Rs661 billion for operational costs)
Agriculture: Rs26.53 billion
Public Health: Rs15.16 billion
Further approved grants include substantial funds for infrastructure, such as Rs120 billion for road and bridge construction and Rs161 billion for government buildings. Other notable allocations comprise Rs27 billion for jails, Rs1 billion for civil defense, Rs66 billion for agricultural loans, Rs18.22 billion for industrial development, and Rs37.96 billion for irrigation. Grants related to registration, stamps, motor vehicles, and excise duties were also passed. Additionally, Rs19 billion was allocated for veterinary services and Rs1.6 billion for fisheries.
Transparency Concerns and Government Clarifications
A significant portion of the budget, Rs1,036.96 billion, was allocated under “miscellaneous expenditures.” This category drew sharp criticism from opposition lawmakers, who raised concerns about transparency, noting that it accounted for approximately 20% of the total budget.
In response, Finance Minister Mian Mujtaba Shujaur Rehman clarified that this broad allocation encompasses funding for various authorities, the crucial Pay and Pension Fund, and vital initiatives related to Women Development, Baitul Maal, and Zakat and Ushr. Despite further objections from the opposition, the Assembly also approved Rs125.23 billion for general administration and Rs9.54 billion for housing and physical planning.
The budget’s approval followed a five-day general discussion in the Assembly, setting the financial course for Punjab for the next fiscal year with a focus on development without imposing new tax burdens on its citizens.
