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.
The Finance Bill 2025 also introduces a negative list mechanism for services taxation, aimed at broadening the tax base and enhancing provincial revenue collection.
A total of Rs4,329 billion in demands for grants were approved, covering 41 sectors. Notably:
Other key allocations include:
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.
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.
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.
