The Punjab Assembly on Monday approved the provincial budget for the fiscal year 2025–26 with a total outlay of Rs5,300 billion, passing the Finance Bill 2025 and all related demands for grants by majority vote.

The budget maintains the existing tax structure with no new taxes imposed, and sets the minimum monthly wage at Rs40,000. According to provincial Finance Minister Mian Mujtaba Shuja-ur-Rehman, the government focused on providing relief to the public by avoiding any additional tax burdens.

Key legislation and tax reforms

• Punjab Autism School and Resource Centre Bill 2025
• Urban Immovable Property Tax Amendment Bill 2025
• Essential Commodities Price Control Amendment Bill 2025
• Punjab Labour Courts Bill 2025

The Finance Bill 2025 also introduces a negative list mechanism for services taxation, aimed at broadening the tax base and enhancing provincial revenue collection.

Major allocations

A total of Rs4,329 billion in demands for grants were approved, covering 41 sectors. Notably:

• Rs462 billion allocated for pensions
• Rs258 billion for healthcare services
• Rs137 billion for education
• Rs200 billion for police
• Rs910 billion for development projects
• Rs120 billion for roads and bridges
• Rs161 billion for public buildings

Other key allocations include:

• Rs26.5 billion for agriculture
• Rs19 billion for veterinary services
• Rs1.6 billion for fisheries
• Rs66.2 billion for agricultural loans
• Rs37.9 billion for irrigation
• Rs18.2 billion for industrial development
• Rs1.32 billion for civil defence

Salary and pension increases

The provincial government also approved a 10% increase in salaries for government employees and a 5% hike in pensions. This comes alongside the formal approval of setting the minimum monthly wage at Rs 40,000.

NFC award and fiscal breakdown

Punjab expects to receive Rs 4,060 billion from the federal divisible pool under the NFC Award. The province’s own revenue collection target is set at Rs 828 billion.

• Current expenditures are estimated at Rs 2,706 billion
• Capital expenditures are projected at Rs 590 billion

Opposition’s motions rejected

All cut motions presented by the opposition on eight departments were rejected by the house. The assembly proceedings saw smooth passage of the budget items with a strong government majority.