Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman has presented a Rs 5.33 trillion budget for the next fiscal year. In this article, we will get to know in detail about allocation and major schemes announced under this budget.
Important Features of Punjab 2025-26 Budget:
A 10% pay raise has been approved for government employees from grade 1 to 2
5% increase in pensions for retired employees
Minimum wage raised from Rs37,000 to Rs40,000 per month
50,000 families to receive interest-free house loans
Lahore gets Rs85 billion for priority development projects
Rs740 billion provincial surplus proposed to meet IMF requirements
No solid plan to expand tax revenue, despite budget shortfalls
Major Budget Allocations under Punjab Budget 2025
The government has allocated record amounts for key sectors:
| Sector | Allocation (Rs) | % Increase from Last Year |
| Health | 630.5 billion | 131% increase (dev. budget) |
| Education | 811.8 billion | 127% increase (dev. budget) |
| Agriculture | 129.8 billion | N/A |
Revenue and Expenses:
Punjab expects to generate funds from the following sources:
Rs4 trillion from the Federal Divisible Pool
Rs524 billion in provincial taxes
Rs303 billion in non-tax revenues
Rs102 billion in capital receipts & loan recovery
Rs128 billion in foreign project assistance
Estimated Spending:
Current expenditures: Rs2.03 trillion
Capital expenditures: Rs590 billion
Service delivery: Rs679 billion
Development projects (ADP): Rs1.2 trillion
Estimated surplus: Rs740 billion
Major Schemes and Initiatives under Punjab Budget 2025
Punjab Budget 2025 for Education
Rs 148 billion for development
Rs 661 billion for operational costs
Rs 15 billion for scholarships under the Honhaar Scholarship Programme
Rs 15 billion allocated for the CM Punjab Laptop Scheme
Punjab Budget 2025 for Health
Rs 128 billion for development projects
Rs 450 billion for non-development expenses
Punjab Budget 2025 for Housing
Rs 150 billion set aside for Apni Chat Apna Ghar. 50,000 new families to get interest free housing loans repayable over 15 years
New scheme under consideration: Apni Zameen Apna Ghar which will offer free plots in 19 districts via balloting
Other Key Projects under Punjab Budget 2025
Rs 84.5 billion for transport and roads
Rs 43 billion for agriculture reforms
Rs 13 billion for forests, wildlife & fisheries
Rs12 billion for energy projects
Rs 10 billion for parks and sanitation expansion
Rs 150 billion for solid waste management under Suthra Punjab Programme
Read: Pakistan Economic Survey 2024-25
Tax Concerns :
The Punjab Govt budget 2025 lacks a concrete strategy to grow tax revenues. The government missed its previous tax target (Rs 471 billion) by 10%, mainly due to lower GST and property tax collections. Only an 11.4% increase is projected in the upcoming year which is aiming for Rs 525 billion.
Lahore Gets Special Attention in Punjab Budget 2025
Lahore remains a priority by receiving Rs 85 billion for development under the Lahore Development Programme. A new CM Punjab Development Programme worth R s25 billion will extend similar benefits to other cities.
