Finance Minister present Rs5.3tn ‘tax-free’ Punjab budget for FY26

Lahore: Punjab Finance Minister Mian Mujtaba Shujaaur Rehman is presenting Rs5.3 trillion ‘tax-free’ annual budget for the fiscal year 2025-26 in the Punjab Assembly. Speaker Punjab Assembly Malik Ahmed is charing the budget session.

The budget speech is continuing amid rumpus as members from opposition benches raised noise to distrupt the budget speech. They tore down the copies of budget in front of the Speaker's dice.

Opening the budget speech, the minister said that he saluted the entrire nation for defeating India. He said that Punjab was making progress under the leadership of Chief Minister Maryan Nawaz Sharif and that the provincial governance is witnesssing because of finnacial discipline.

Rehman added that new schools, colleges and hospitals were being constructed throughout the province.

Mujtaba Shuja-ur-Rehman stated that, like the previous year, the 2025–26 budget is also tax-free. Measures have been taken to address serious issues like climate change, and new IT and industrial cities are being developed. The 2025–26 budget will set new records of development in Punjab and provide relief to the public.

While presenting the budget figures in the Punjab Assembly, the Finance Minister said that Maryam Nawaz is working to eliminate poverty and unemployment from Punjab. She has opened new avenues of progress for the youth. Laptops have been distributed to students across Punjab without discrimination, and developmental work is ongoing around the clock. Under Maryam Nawaz's leadership, Punjab is on the path of progress.

Mujtaba Shuja-ur-Rehman further added that a substantial amount has been allocated for free medicines in Punjab. A Food Nutrition Program has been launched, and a Nawaz Sharif Institute of Cardiology is being established in Sargodha.

He also said: "We salute the entire nation on the victory against India. The Pakistan Army has achieved a historic success. During the war, the Chief Minister played a leading role in Punjab. We strongly condemn Israel’s expansionist ambitions and consider the unjustified attack on Iran to be deplorable."

Unveiling the budgetary proposals, the finance minister announced that no new taxes have been levied, making it a tax-free budget.

A major highlight of the budget is the allocation of 1,240 billion rupees for the Annual Development Programme, marking a significant increase of 47.2 percent compared to the current financial year. 

The finance minister announced a 10 percent increase in the salaries of Punjab government’s employees from Grade 1 to Grade 22.

He also announced an increase in the minimum monthly wage from 37,000 rupees to 40,000 rupees.

He said that a target of 828.145 billion rupees has been set for provincial revenues, including 524.7 billion rupees in tax revenue and 303.4 billion rupees in non-tax revenue.

The Minister further said that the revenue target includes 340 billion rupees for the Punjab Revenue Authority, 9.7 billion rupees for Energy and Transport, 105 billion rupees for the Board of Revenue, and 70 billion rupees for Excise and Taxation.

The Minister said 181 billion rupees has allocated for the health sector, marking a significant investment in improving healthcare infrastructure and services across the province.

The Minister said 336 billion rupees have been allocated for infrastructure development. 

Earlier, Punjab Cabinet, at its meeting chaired by Chief Minister Punjab Maryam Nawaz Sharif in Lahore, approved the budgetary proposals for the next fiscal year.