Aaj News

No new tax in Rs5,553 billion Punjab budget

10% increase in salaries of govt workers; opposition members stage noisy protest
Published 16 Jun, 2025 05:11pm
Screen grab by AAJ NEWS
Screen grab by AAJ NEWS

The Punjab government on Monday presented a Rs5,535 billion budget for the fiscal year 2025-26 in the provincial assembly.

The budget includes a 10% salary increase for government employees and a 5% hike in pensions.

Opposition members created a ruckus in the assembly and tore up budget documents in front of the Speaker’s desk.

In his budget speech, Punjab Finance Minister Mujtaba Shuja-ur-Rehman highlighted national resilience and foreign policy stances.

He lauded the Pakistan Army, stating it “crushed Indian arrogance,” and paid tribute to Field Marshal Asim Munir.

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The minister condemned Israel’s recent attack on Iran as unjustified and called Israeli aggression a threat to global peace.

He declared the current budget as a “budget of public service” and announced no new taxes would be imposed.

“We inherited a paralyzed system, but today Punjab is rapidly developing under Chief Minister Maryam Nawaz’s leadership,” he stated.

Mujtaba Shuja-ur-Rehman stated that development work across the province is progressing rapidly.

He said: “Road networks are being expanded, and record public welfare projects have already been completed.”

He described the Punjab budget as a “people-centric budget” with a strong focus on education, healthcare, and essential services.

The minister announced the formal launch of the Chief Minister Laptop Scheme with an allocation of Rs 10 billion. He added that over 50,000 students have already received laptops.

Additionally, measures have been taken to meet the nutritional needs of students in more than 3,500 government schools across Punjab.

In the health sector, he highlighted major initiatives, including the establishment of the Nawaz Sharif Cancer and Research Institute in Lahore, the construction of the Jinnah Institute of Cardiology, the introduction of emergency ambulance services on motorways, and provision of free dialysis treatment to over 20,000 patients in Punjab.

He also mentioned that a modern autism school has been set up in Lahore with an investment of Rs670 million, calling it a revolutionary step in education.

According to the minister, under the leadership of Chief Minister Maryam Nawaz, governance quality and efficiency have significantly improved.

He revealed that 6,104 development projects have been completed within just one year — a historic first for Punjab.

He emphasized that the provincial government is undertaking revolutionary initiatives for the public, such as housing schemes for the underprivileged, laptops for students and quality education and nutrition (including milk) in schools.

Mujtaba Shuja-ur-Rehman said the budget has been framed with complete transparency and fair resource allocation, centered entirely on public welfare. He reiterated that no new taxes have been imposed.

He further noted that record funds have been allocated to education and healthcare.

The minister said that Rs 1240 billion had been allocated for development.

He said the budget prioritized youth empowerment. the minister claimed that Rs70 billion in interest-free loans had been distributed to youth for business and employment.

Mujtaba Shuja-ur-Rehman announced a 10% increase in salaries for government employees, aiming to reduce inflationary pressure and ensure employee welfare.

He stated that the total provincial budget stands at Rs5,335 billion, with a historic 47% increase in the development budget.

He termed the budget a reflection of the government’s commitment to public relief, welfare projects, and the provision of modern facilities.

Highlighting healthcare achievements, the minister revealed that 167 lives have been saved through Punjab’s Air Ambulance service, calling it a revolutionary step in the health sector.

A total of Rs631 billion has been allocated for health, Rs181 billion for development projects and Rs450 billion for non-development expenditures.

In a major initiative for housing, the government has launched the “Apni Chhat, Apna Ghar” (My Roof, My Home) scheme, with a budget of Rs85.5 billion.

The minister said the scheme is a milestone for helping low-income families achieve the dream of homeownership.

In the education sector, Rs5 billion has been earmarked to equip schools with basic facilities. He stressed that public interest projects and welfare programmes have been given top priority in this year’s budget.

Mujtaba Shuja-ur-Rehman announced that significant funds have been allocated for revolutionary reforms in the health and education sectors in the provincial budget.

He stated that Rs2.6 billion has been allocated for the Nawaz Sharif Institute of Cardiology, while Chief Minister Maryam Nawaz’s flagship initiatives, the Health Clinic Programme and Community Health Programme, have been granted Rs9 billion and Rs12.6 billion, respectively.

The education sector has also seen a notable boost, with Rs661 billion allocated for non-development expenses — a 127% increase compared to last year.

To support talented students, the government has allocated Rs15 billion for scholarships. Similarly, the govt has set aside Rs4.5 billion for student stipends.

Additionally, the Chief Minister’s Laptop Scheme aims to distribute 112,000 laptops across Punjab to promote digital access and learning.

The finance minister also announced that a substantial amount has been reserved for the provision of free medicines, which will directly benefit millions of patients across the province.

According to official budget documents, the province has made record increases across various sectors, aiming to improve basic services and infrastructure.

As per the budget documents, education has received a 127% increase, reflecting a major push toward improving access and quality in schools and colleges.

The health sector has seen a 41% increase, indicating a continued focus on public healthcare services.

In a surprising move, the police budget has been raised by 132%, aimed at modernizing law enforcement and enhancing public safety infrastructure.

The agriculture sector received a 24% hike in its allocation, focused on providing subsidies, modern technology access, and improving productivity for farmers.

The transport sector emerged as the top priority, with an unprecedented 359% increase, indicating major upcoming investments in roads, public transport, and logistics infrastructure.

A 50% increase has also been allocated for environmental protection, reinforcing the government’s commitment to sustainable development.

These allocations underline the Punjab government’s strategy to modernize essential services, improve governance, and accelerate socioeconomic progress.

According to budget documents, the development budget has been set at Rs.1,240 billion, marking it as one of the largest development packages in the province’s history.

Punjab is expected to receive Rs4,062.2 billion from federal transfers, while the provincial revenue target has been set at Rs828.1 billion.

A total of Rs72.27 billion has been allocated for targeted subsidies, aimed at shielding the most vulnerable populations from inflationary pressures.

The government announced a 10% increase in salaries for government employees and a 5% hike in pensions.

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