Punjab Unveils Rs5.35 Trillion ‘Tax-Free’ Budget for 2025–26
CM Maryam Nawaz calls it a ‘historic public service package’; record Rs1.24 trillion allocated for development
Punjab Finance Minister Mujtaba Shuja ur Rehman on Monday presented a Rs5,335 billion budget for fiscal year 2025–26, calling it a “people-friendly” and “tax-free” plan that aligns with the reformist vision of Chief Minister Maryam Nawaz Sharif. The provincial cabinet, chaired by CM Maryam, approved the budget prior to its formal presentation in the assembly.
Speaking at the 27th provincial cabinet meeting, CM Maryam described the budget as a reflection of “every rupee as a public trust” and said it is anchored in transparency, accountability, and responsible governance.
“This is a zero-tax budget and also the largest development budget in Punjab’s history,” the chief minister announced.
Major Highlights:
- No new taxes introduced
- Annual Development Programme (ADP) increased by 47% to Rs1,240 billion
- Minimum wage set at Rs40,000
- 94% reduction in local borrowing
- Rs740 billion budget surplus despite IMF conditionalities
Maryam Nawaz emphasized that the government had prioritized expanding the tax base over raising tax rates. While acknowledging gaps in the performance of the Punjab Revenue Authority, she committed to reforms and improved fiscal oversight.
She underscored the use of digital tools like e-tendering, and strict financial controls to ensure that no financial irregularities emerged, despite record spending. “The era of scandals is over. Discipline, transparency, and delivery now define governance in Punjab,” she said.
Development & Welfare Priorities:
The chief minister detailed a robust development agenda, including:
- 100 innovative development initiatives
- 94 new public programs
- 12,000 km of road construction and upgrades, with 700 roads currently under development
- Provision of free medicines in hospitals
- Modernisation of public schools and digitalisation of wage systems
She hinted at a performance-based incentive system for civil servants and highlighted the government’s ability to maintain a budget surplus while meeting IMF benchmarks.
“We declared an emergency in Punjab and delivered. This budget is proof of our performance,” Maryam remarked, adding that her leadership is grounded in the philosophy that “power is a trust from God, and public service is our mission.”
Strategic Reorientation of Budget Priorities
Senior Minister for Planning & Development Marriyum Aurangzeb and Finance Minister Mujtaba Shuja ur Rehman provided detailed briefings during the session.
In a post on X, Marriyum Aurangzeb revealed that ADP spending had jumped from Rs842 billion to Rs1,240 billion, even as the overall fiscal space remained compressed. Government operational expenses, she noted, were limited to a 3% increase, despite salary and pension enhancements.
She described the budget as a strategic shift in provincial priorities, lauding the “fearless and reformist leadership” of CM Maryam Nawaz for moving beyond outdated governance norms.
