The Punjab government is set to present a Rs 6.5 trillion budget for the fiscal year 2025-26 on Monday, with over Rs 1.2 trillion allocated for the Annual Development Programme (ADP). The budget session, scheduled for 11:00 am, will prioritise communication infrastructure development.
The proposed budget will be approved by the Punjab cabinet, chaired by Chief Minister Maryam Nawaz Sharif, before being presented to the Punjab Assembly.
As per sources, there will be no new taxes in the budget. Instead, the government plans to expand the scope of existing taxes by removing some exemptions for selected segments, implementing an agriculture income tax, and eliminating the negative list of services under Punjab’s sales tax to bring nearly all services into the provincial tax net.
The budget is expected to generate more than Rs 4 trillion from the federal divisible pool, with an additional Rs 1 trillion expected from provincial tax and non-tax revenue sources.
The Punjab Revenue Authority is tasked with collecting over Rs 300 billion in the next fiscal year, while the Excise and Taxation Department is expected to generate over Rs 63 billion. The total tax collection target is set at Rs 510 billion, with a non-tax revenue target of Rs 540 billion.
The ADP for the upcoming fiscal year is projected at Rs 1,205 billion, with key allocations for various sectors. The road sector will receive Rs 120 billion, while Rs 90 billion will be allocated to health, Rs 100 billion to school education, and Rs 25 billion for higher education.
Other notable allocations include Rs 80 billion for agriculture, Rs 70 billion each for specialized healthcare and transport, Rs 40 billion each for governance, IT, and irrigation, and Rs 30 billion for tourism.
Additionally, the budget includes Rs 7.5 billion for the energy sector, Rs 6 billion for water supply and sanitation, and Rs 5 billion each for forestry and livestock. Mega projects for public transport, including environmentally friendly initiatives, will also be a key focus. These include Rs 80 billion for the Yellow Line project, Rs 60 billion for 600 electric buses and bus depots, and Rs 120 billion to start a metro bus service in Faisalabad.
