Punjab Assembly approves Rs 5.3 trillion budget for FY 2025–26 with no new taxes

Lahore: The Punjab Assembly has approved the Rs 5,300 billion provincial budget for fiscal year 2025–26 by a majority vote. All cut motions proposed by the opposition were rejected.

The budget introduces no new taxes, retaining the existing tax structure. The minimum monthly wage has been increased to Rs 40,000, while government salaries will rise by 10% and pensions by 5%.

Key allocations include:

Education: Rs 137 billion

Health: Rs 258 billion

Police: Rs 200 billion

Pensions: Rs 462 billion

Development projects: Rs 910 billion

Roads and bridges: Rs 120 billion

Government buildings: Rs 161 billion

Demands for grants were approved across 41 departments, including agriculture, fisheries, veterinary services, prisons, museums, justice, excise, and local government.

A new “Negative List” for service taxation has been introduced to broaden the tax base and improve revenue collection.