Punjab unveils Rs5,335bn tax-free budget for 2025-26

Punjab Finance Minister Mujtaba Shuja ur Rehman on Monday presented a Rs5,335 billion budget for fiscal year 2025–26 in the provincial assembly, terming it a “people-friendly” plan aligned with the development vision of Chief Minister Maryam Nawaz Sharif.

The provincial cabinet, led by Punjab Chief Minister Maryam Nawaz Sharif, approved the budget ahead of the session.

CM Maryam addressed the 27th provincial cabinet meeting, announcing zero-tax budget for fiscal year 2025–26.

Chief minister said the budget reflects “every rupee as a public trust” and is guided by “accountability before God.”

In her address, Maryam Nawaz highlighted a 47% increase in the Annual Development Programme (ADP), taking it to Rs1,240 billion, while ensuring no new taxes were introduced. “This is a zero-tax budget and also the largest development budget in Punjab’s history,” she said.

She noted that despite record allocations, “no financial scandal has emerged,” crediting improved financial discipline, e-tendering processes, and a focus on transparency and good governance.

“Instead of raising taxes, we will focus on expanding the tax net,” she said, while expressing dissatisfaction over the Punjab Revenue Authority’s performance, adding that “there is room for improvement.”

CM Maryam Nawaz outlined several achievements and goals, including the launch of 100 innovative development projects, 94 new public programmes, and the construction or expansion of 12,000 kilometres of roads. “700 roads are currently under construction,” she added.

The chief minister reaffirmed her government’s focus on health and education, promising provision of free medicines and infrastructure upgrades in public schools. She also announced that the minimum wage had been set at Rs40,000 and called for the digitalisation of wage systems.

Maryam Nawaz credited her team’s efforts, applauding the senior minister and the chief secretary’s performance, noting that her father, former Prime Minister Nawaz Sharif, also praised the cabinet’s work.

“We declared an emergency in Punjab and delivered. We met IMF conditions and still presented a Rs740 billion budget surplus,” she said.

She also hinted at a possible performance-based bonus system for civil servants and said the province had achieved a 94% reduction in local borrowing.

Calling the 2025–26 budget a “historic public service package,” she concluded, “The work ethic in Punjab has transformed. Power is a trust from God; serving people is our mission.”

Senior Minister for Planning & Development Marriyum Aurangzeb and Finance Minister Mujtaba Shuja ur Rehman gave detailed briefings during the session.

In a post on social platform X, Senior Minister Marriyum Aurangzeb said the Annual Development Programme (ADP) had been increased by 47%—from Rs842 billion to Rs1,240 billion—despite a “compressed” overall fiscal space. Government operational expenses rose by just 3%, even with salary and pension hikes.

Aurangzeb described the budget as a historic and strategic realignment of priorities, calling it a departure from outdated traditions under the chief minister’s “fearless and reformist leadership.”