LAHORE: The Punjab government has decided to present the provincial budget for the fiscal year 2025–26 on June 13.
The decision was made after the federal government finalized its financial targets. Following this, Punjab began giving final shape to its upcoming budget.
Sources indicate that the new budget is expected to avoid introducing any new taxes, with only a minimal increase in existing tax rates under consideration. Additionally, the Punjab Revenue Authority may propose the inclusion of non-taxpaying sectors into the tax net to improve revenue collection.
The budget is also likely to include a 10% salary increase for government employees, in line with anticipated relief measures.
The provincial government aims to strike a balance between fiscal responsibility and economic relief amid ongoing economic challenges.
The Punjab government is set to present its budget for the fiscal year 2025–26 on June 13, with a strong focus on improving public services and infrastructure, according to official sources.
The upcoming budget is expected to allocate significantly higher funds for education, health, law and order, and tourism.
The education sector may receive an increase of Rs110 billion compared to last year’s allocation. The health budget is expected to see an increase of Rs90 billion. There is a potential 600% increase in overall development spending. Multiple new schemes will be introduced across Punjab to improve sanitation and access to clean drinking water.
Additionally, the government has decided to fund the development of model villages. A total of 2,400 villages across Punjab are set to be transformed into high-standard model communities as part of a rural uplift initiative.
As part of its development-focused agenda, the Punjab government plans to allocate substantial funds in the upcoming fiscal budget for the Model Village Project and agricultural support, official sources revealed.
According to sources, the government will provide funding to transform 800 villages into model villages in the next fiscal year. An additional 1,600 villages will be upgraded with financial support from the World Bank, bringing the total to 2,400 villages under the program.
The project aims to cover over 60% of rural Punjab in a phased manner. These model villages will be equipped with essential amenities including: proper street cleaning systems, new water supply lines and installation of street lights
The initiative is intended to improve living conditions in rural communities and bridge the urban-rural development gap.
Additionally, the provincial budget will include increased financial support for farmers, with proposals for subsidies and funds to assist in the purchase of wheat and rice seeds as well as fertilizers. The aim is to boost agricultural productivity and support small-scale farmers across the province.
These rural and agricultural development measures will accompany increased allocations for education, health, sanitation, and tourism, as Punjab prepares to present its FY2025–26 budget on June 13.
