Punjab Presents Rs. 5,300 Billion Budget: Increase in Salaries and Pensions

LAHORE (RNN TV) — The Punjab government has presented a budget worth Rs. 5,300 billion. A 10% increase in salaries of government employees and a 5% increase in pensions has been approved. During the budget presentation, members of PTI strongly protested.

According to Budget live speech, the Punjab Assembly session began with Punjab Finance Minister Mian Mujtaba Shujaur Rehman presenting the budget. Chief Minister Maryam Nawaz is present in the assembly. During the budget speech, the opposition continued to create an uproar in the house. Opposition members surrounded the Speaker’s dais and raised slogans against the Punjab government.

A cabinet meeting was held under the chairmanship of Chief Minister Punjab Maryam Nawaz Sharif, in which the budget for the upcoming fiscal year 2025-26 was approved. The cabinet approved a 10% increase in government employees’ salaries and a 5% increase in pensions. The minimum wage was increased to Rs. 40,000.

For development expenditures, Rs. 1,240 billion have been allocated—an increase of 47.2% from last year. This is being termed the largest development budget in the province’s history.

Foreign-funded projects have been allocated Rs. 171.7 billion, while Rs. 934.2 billion will be transferred to local governments.

The education sector received a 21.2% increase with an allocation of Rs. 811.8 billion. The health sector has been allocated Rs. 630.5 billion—an increase of 17%. The agriculture sector will receive Rs. 129.5 billion, a 10.7% increase from the previous year.

The total volume of current expenditures is Rs. 2,026.7 billion, a 5.9% increase from last year. However, service delivery costs have been reduced by 5.8%, with Rs. 679.8 billion allocated.

In terms of revenues, the FBR (Federal Board of Revenue) target is set at Rs. 14,131 billion, with Punjab’s share being Rs. 4,062.2 billion. The Punjab government has set its own revenue target at Rs. 828.1 billion, with Rs. 524.7 billion from tax revenue and Rs. 303.4 billion from non-tax revenue.

The Punjab Revenue Authority has been given a target of Rs. 340 billion, a 13% increase from last year. The target for Urban Immovable Property Tax is Rs. 32.5 billion, while the Board of Revenue has a revenue target of Rs. 105 billion. A targeted subsidy of Rs. 72.3 billion is also included in the budget.

During the budget speech, Chief Minister Punjab Maryam Nawaz Sharif continued listening to the concerns of assembly members. Instead of listening to the budget speech, assembly members were seen having their applications signed by the Chief Minister.

Largest Budget in Punjab’s History

This is the largest budget in Punjab’s history. It includes a:

• 127% increase in the education budget,
• 41% increase in the health budget,
• 132% increase in the police budget,
• 24% increase in the agriculture budget,
• 359% increase in the transport budget,
• 50% increase in the environment protection budget,
• 130% increase in the municipal budget,
• 211% increase in the housing, urban development, and public health budget,
• 59% increase in the fisheries, wildlife, and forest budgets.

Salaries and Pensions Increase

A 10% increase has been approved for government employee salaries and a 5% increase for retired employees’ pensions.

Increase in Minimum Wage

The Punjab government has raised the minimum monthly wage to Rs. 40,000.

Good News for Journalists

An amount of Rs. 400 million has been allocated for the Journalist Housing Foundation with the aim of providing homes to journalists and media workers.

Additionally, a Journalist Endowment Fund is being established with an allocation of Rs. 1 billion in the upcoming fiscal year to support the welfare of journalists and media workers.

Education

• 661 billion allocated for non-development education expenditures.
• 15 billion set aside for merit-based scholarships.
• 4.5 billion allocated for student stipends.

Under the CM Punjab Laptop Scheme, 112,000 students in universities and colleges will receive laptops at a cost of Rs. 27 billion and Rs. 10 billion, respectively.

• 5 billion allocated for improving facilities in schools.
• 35 billion allocated for the Punjab Education Foundation (PEF).
• 2 billion allocated for building eight new girls’ colleges.
• 2 billion for IT labs in existing colleges.
• 250 million for existing universities in Punjab.

Health

• 181 billion allocated for development in the health sector.
• 450 billion allocated for non-development health expenditures.
• 14 billion granted for the Nawaz Sharif Institute of Cancer Treatment & Research Centre, with Rs. 12 billion allocated this year.
• 2.6 billion allocated for the Nawaz Sharif Institute of Cardiology.
• 109 billion allocated for establishing the Nawaz Sharif Medical District and land acquisition.
• 9 billion for the Maryam Nawaz Health Clinic Program.
• 12.6 billion for the Maryam Nawaz Community Health Program.
• 100 New Sahulat (Relief) Bazaars to Be Established

The Punjab government has decided to set up 100 new Sahulat Bazaars across the province in the upcoming fiscal year. These bazaars, operating under the Price Control & Commodities Department, will be set up in 100 tehsils and are to be completed by June 30, 2026.

An allocation of Rs. 13 billion has been proposed for this initiative. In Lahore alone, 15 more bazaars will be established to expand coverage.

Other cities where Sahulat Bazaars will be set up include:

D.G. Khan, Bahawalpur, Vehari, Lodhran, Layyah, Chakwal, Faisalabad, Sargodha, Toba Tek Singh, Farooqabad, Wazirabad, Jaranwala, Bhalwal, Chunian, Pattoki, Mandi Bahauddin, Okara, Narowal, Chiniot, Sharaqpur, and Jhelum.

Punjab Police

In the upcoming fiscal year’s budget, Rs. 10 billion has been allocated for development in the law and order sector, and Rs. 290 billion for non-development expenditures.

To enhance the capacity of Punjab Police, Rs. 200 billion has been earmarked under the proposed non-development budget.

For police buildings construction and related projects, Rs. 7.4999 billion has been allocated. New projects for construction and expansion of police offices, housing, and other headquarters will receive Rs. 5.256 billion.

Ongoing projects have been allocated a significant sum of Rs. 2.2438 billion. For the Crime Control Department (CCD), Rs. 3.3 billion has been allocated under non-development expenditure.

For development under the Crime Control Department, Rs. 3.24 billion has been estimated. In the Smart Safe Cities CM Tehsil project, Rs. 5.8 billion has been allocated for 10 divisions. Rs. 1.2 billion is earmarked for upgrading the Lahore Safe City Project.

To complete the Smart Safe Cities project in 19 districts, Rs. 2.54 billion has been allocated.

Information Technology

A hefty sum of Rs. 5.9466 billion has been allocated for the IT sector. Rs. 1.3551 billion will be used to launch new schemes and projects, while Rs. 4.5915 billion is set aside for ongoing IT projects.

The allocated funds will be used to complete Safe City projects and computerize Punjab Police records.

Forests, Wildlife, and Fisheries

The Punjab government has proposed over Rs. 140 billion for forests, wildlife, and fisheries in the 2025–26 budget. The Forest Department has been allocated more than Rs. 37.5 billion for six ongoing and six new schemes.

Ongoing forest projects will receive Rs. 26.18 billion, while new schemes are proposed Rs. 11.32 billion. In the new fiscal year, Rs. 4.90 billion will be released for the Forest Department.

Rs. 50 million has been approved for ecotourism facilities in Lal Suhanra National Park, Rs. 4.24 billion for the Chief Minister’s “Plant for Pakistan” initiative, and Rs. 322 million for the GIS Protection Regime Project.

New forest schemes include Nature Enclave and canal-side plantation. Funds are allocated for setting up a Forest Command and Control System.

For Punjab Wildlife, Rs. 46.06 billion is allocated for 18 projects—Rs. 28.06 billion for ongoing projects and Rs. 9.97 billion to be released in the upcoming year. Five new wildlife schemes are proposed Rs. 18.50 billion.

Rs. 7 billion is allocated for Phase 2 of the Lahore Safari Zoo Masterplan. Rs. 3.5 billion is allocated for revamping Bahawalpur Zoo, and Rs. 3.5 billion for ecotourism in Lal Suhanra and Salt Range. Rs. 4 billion is allocated for the restoration and protection of wildlife habitats.

For 11 fisheries projects, Rs. 56.73 billion is proposed. Rs. 3.77 billion will be released for the shrimp farming project. Rs. 10 billion is proposed for establishing a model fish market in Lahore.

Multiple shrimp estate projects in Muzaffargarh will receive Rs. 10 billion each.

No New Taxes Introduced

No new taxes have been imposed in Punjab’s new budget. The current tax structure remains unchanged. No changes have been made to provincial taxes such as sales tax, property tax, or transport tax. No additional taxes have been levied on any sector, including industry, agriculture, health, or education.

18 New Sectoral Projects

The budget includes 18 new sectoral projects. Rs. 5 billion has been allocated for the CM Clean Water Scheme, Rs. 25 billion for model villages in rural areas, Rs. 6.9 billion under the “Parwaaz Card” for overseas employment, and Rs. 5.2 billion for AI and game development training.

Rs. 14 billion is allocated to provide solar panels to citizens at affordable prices, Rs. 4 billion to convert Changa Manga into a tourist park, Rs. 2 billion for initiating high-speed railways, Rs. 5.8 billion for modern smart city security systems.

Other allocations include:

• Education: Rs. 61.3 billion
• Health: Rs. 25 billion
• Agriculture: Rs. 20 billion
• Social Welfare: Rs. 150 billion
• Sports: Rs. 1.6 billion
• Budget Speech

While presenting the budget, Punjab’s Finance Minister, Mian Mujtaba Shuja-ur-Rehman, said the total estimated budget is Rs. 5,335 billion.

• Rs. 2,706 billion has been earmarked for non-development expenditures, which include salaries, pensions, transfers, service delivery, and the Provincial Finance Commission (PFC). Non-development expenditures will see a 6% increase.
• Rs. 1,240 billion is allocated for development expenses—47% more than the previous fiscal year’s development budget.

He announced Rs. 764.2 billion through the PFC to empower local governments, along with grants of Rs. 150 billion for waste management and Rs. 20 billion for municipal corporations. A separate Rs. 70 billion package has been included in the budget for social protection.

Punjab is projected to receive Rs. 4,062 billion in federal transfers through the Federal Divisible Pool (FDP). The target for provincial revenue collection has been set at Rs. 828.2 billion, including:

• Rs. 340 billion from Punjab Revenue Authority
• Rs. 135.5 billion from the Board of Revenue
• Rs. 30 billion from Mines & Minerals

Foreign funding programs, loans, and state trading are estimated at Rs. 97.9 billion. Under agreements with the federal government and IMF, Rs. 740 billion has been included in the budget under EPS (Expected Public Support).

Revolutionary Steps in the Health Sector

The Finance Minister stated that the Punjab government is taking extraordinary steps in the health sector, transitioning towards a comprehensive and effective system. The upcoming fiscal year’s budget gives special importance to health, opening new avenues for improvement.

During the current fiscal year, Rs. 181 billion were spent on improving health facilities in Punjab—131% more than the previous year. For the next fiscal year, Rs. 450 billion is proposed—a 16% increase compared to the previous year.

To improve hospital services and staff performance, an HRMIS (Human Resource Management Information System) has been implemented. This modern system monitors staff attendance and services to enhance performance.

ALso, the government has decided to establish the “Nawaz Sharif Institute of Cancer Treatment and Research Center” equipped with state-of-the-art facilities. Rs. 14 billion has been allocated for this project in the 2024–25 fiscal year. The total cost will be Rs. 72 billion, with 915 beds. Rs. 12 billion has already been allocated.

These efforts reflect the Punjab government’s commitment to improving the health sector and providing quality healthcare to citizens. Under the Chief Minister’s vision, these reforms mark the beginning of a new era in health services.