Punjab Budget 2025–26: By CM Maryam Nawaz PMLN
Introduction
The Punjab government presented its eagerly awaited fiscal budget for 2025-26 on June 16, 2025. Designed with a progressive outlook. The budget seeks to maintain financial conditions while prioritizing developmental goals. With major preference on education, health, agriculture, infrastructure, and public sector reforms. It highlights the government’s dedication to inclusive growth, economic strength, and modernization.
Who Presented the Budget?
The budget was presented by the Provincial Finance Minister in the Punjab Assembly Mujtaba Shuja-ur-Rehman, keeping in mind the vision of Chief Minister Maryam Nawaz’s administration. Backed by a blend of public service enhancement and strategic investments. The speech outlined both achievements of the past year and bold plans for the upcoming fiscal cycle. With a total outlay exceeding Rs. 5,335 billion. This year’s budget demonstrates a robust governance strategy focused on service delivery, transparency and digital transformation.
Purpose and Vision of the Budget 2025–26
The central theme of the Punjab Government Budget 2025-26 revolves around economic resilience, poverty reduction and modernizing public services. The key objectives include:
- Enhancing human development through increased funding for health and education.
- Economic revival and job creation via industrial and agricultural support programs.
- Fostering digital transformation to modernize public sector governance.
- Targeted social safety programs for the most vulnerable populations.
The budget’s purpose is not only to meet immediate developmental needs but to lay the foundation for long-term prosperity by aligning provincial efforts with Sustainable Development Goals (SDGs).
Major Benefits and Sector-Wise Allocations
The Punjab Budget 2025-26 outlines several flagship programs and development schemes. Below is a sector wise breakdown of the major allocations and benefits:
1. Education – [Rs. 494 Billion]
- Establishment of 661 new schools and upgradation of existing ones.
- Punjab Higher Education Commission (PHEC) allocated Rs. 24.4 billion.
- Digital classrooms, smart boards, and skills training for students.
2. Health – [Rs. 399 Billion]
- Revamping of 1026 BHUs and 191 RHCs.
- Rs. 2 billion allocated to CM Dialysis Program and Rs. 4.3 billion to CM Child Heart Surgery Program.
- Free medicine programs and healthcare coverage through Sehat Cards.
3. Infrastructure – [Rs. 700 Billion+]
- Rehabilitation of 147 roads under the Roads Restoration Program-II.
- Rs. 17 billion set aside for Murree Development and Rs. 45 billion for sports complexes rehabilitation.
- CM District SDGs Program with Rs. 85.5 billion for localized development.
4. Agriculture & Food Security – [Rs. 122 Billion]
- Subsidies under CM Wheat Support Program and Agri Inputs Initiative.
- Rs. 2.95 billion for Agroforestry and Rs. 60,000 internships for agri-graduates.
- Demo farms, shrimp aquaculture, and revolving funds for small farmers.
5. Social Protection & Employment – [Rs. 124 Billion]
- Punjab Socio-Economic Registry expansion.
- Assan Karobar Finance and Card Scheme to promote micro-enterprises.
- 500 vocational training programs targeting unemployed youth.
Revenue and Taxation Details
The Punjab Government aims to achieve a revenue target of [Rs. 5,335 billion] including:
- Own Source Revenue: Rs. 828.2 billion.
- Federal Transfers (PFC): Rs. 2,706.5 billion.
- Capital Receipts & External Financing: Rs. 135.5 billion.
- Earmarked Social Sector Funding: Rs. 494 billion.
Taxation Measures
Despite the budget’s ambitious development plans, the government has not imposed any new major taxes. Instead, it aims to improve revenue collection efficiency through digitization and administrative reforms.
- Sales Tax on Services will be streamlined.
- Expansion of the tax net without burdening the middle class.
- Enhanced use of e-governance to prevent leakages in tax collection.
- These reforms signal a move toward sustainable financing without imposing undue pressure on citizens.
Key Development Programs and Flagship Projects
The 2025-26 budget includes a wide array of flagship development initiatives some of which are:
Digital Punjab Vision
- Introduction of 400 Free Wi-Fi spots.
- Facial recognition systems in public spaces.
- E-governance apps for service delivery.
Women and Youth Empowerment
- Women-specific skill development programs.
- Support for female entrepreneurs under the Assan Karobar Scheme.
- Rs. 19 billion allocated for interest-free youth loans.
Climate Change and Environment
- Rs. 8.7 billion for climate resilience and reforestation.
- Aquaculture initiatives for sustainable fishery and shrimp farming.
Public Transport and Connectivity
- Upgrades to mass transit systems in major cities.
- Expanded rural roads and bridge network.
Pros of the Punjab Budget 2025-26
One of the most commendable aspects of the budget is its strong focus on social equity. Large allocations have been made to health, education, and social welfare, ensuring that marginalized groups such as women, youth, and low-income citizens are prioritized in development plans. The budget also offers relief to the general public by introducing no new taxes, thereby shielding citizens from additional financial strain while maintaining an expansive development approach.
Another notable strength is the government’s emphasis on digitization and transparency. By incorporating digital systems into governance and financial management, the budget aims to enhance efficiency, reduce corruption, and streamline public service delivery. In the agriculture and industry sectors, targeted subsidies and technical support for farmers and small enterprises are expected to boost rural economic activity and strengthen food security.
The budget promotes an inclusive growth model, aiming for balanced regional development through initiatives like the Punjab Socio-Economic Registry, healthcare access programs, education reforms, and youth employment schemes. These measures collectively reflect the government’s intention to create opportunities across both urban and rural landscapes.
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Cons of the Punjab Budget 2025–26
Despite its strengths, the budget has a few shortcomings that warrant attention. A major concern is the high dependence on federal transfers. With a substantial portion of the budget reliant on funds from the central government, any delay or shortfall in transfers could disrupt project execution and service delivery.
There are also significant implementation challenges. While the policies and initiatives are ambitious, the actual on-ground execution especially of large-scale infrastructure and social programs may face logistical and administrative hurdles, particularly in rural and underdeveloped areas.
Although the budget emphasizes digital transformation, it falls short in offering meaningful support for tech startups and innovation ecosystems, missing a key opportunity to boost entrepreneurship. Additionally, there is a visible urban bias, with many infrastructure and education investments concentrated in cities, potentially sidelining the needs of rural communities.
How effectively does the Punjab Budget 2025-26 address climate change and long term sustainability challenges?
The budget’s climate change allocation remains modest. Given the province’s vulnerability to environmental challenges, a stronger commitment to climate resilience would have strengthened the long-term sustainability of development efforts.
Although Rs. 8.7 billion has been set aside for climate change, experts feel that given Pakistan’s vulnerability, this amount is still conservative.
The Punjab Budget 2025-26 presents a bold and thoughtful blueprint aimed at transforming the province’s economic and social landscape. With balanced attention to social equity, digital innovation, infrastructure development, and financial prudence, this budget sets a progressive tone for the years ahead.
While challenges in execution, funding dependency, and equitable distribution remain areas of concern, the government’s refusal to impose new taxes and its focus on digital governance, youth empowerment, and public health underscore a people-first approach.
As implementation begins, all eyes will be on how effectively these ambitious plans are translated into real-world impact.
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