LAHORE, June 17, 2025
Punjab Unveils Zero-Tax Budget for 2025-26
Punjab’s budget for the upcoming fiscal year, totaling Rs5.335 trillion, prioritizes public welfare and growth under Chief Minister Maryam Nawaz Sharif.
- A zero-tax budget has been introduced.
- The Annual Development Program (ADP) sees a notable 47% increase.
- Focus on health, education, and infrastructure upgrades.
Punjab’s Finance Minister,Mujtaba Shuja ur Rehman,presented a Rs5.335 billion budget for the 2025-26 fiscal year on monday, which Chief Minister Maryam Nawaz Sharif hailed as “people-amiable.” The budget presentation took place in the provincial assembly, reflecting the government’s commitment to development and public service.
The provincial cabinet, led by Chief Minister Maryam Nawaz Sharif, had previously approved the budget. During the 27th provincial cabinet meeting, a zero-tax budget was announced for the upcoming fiscal year.
Chief Minister Maryam Nawaz emphasized that the budget is guided by “accountability before God” and reflects “every rupee as a public trust.” The budget includes a substantial increase in the Annual Development Programme (ADP).
Budget Breakdown: The Rs5.335 trillion budget is allocated across various sectors, including health, education, infrastructure, and social welfare programs. A detailed breakdown of allocations will be released shortly.
In her address, Maryam Nawaz highlighted a 47% increase in the Annual Development Programme (ADP), bringing it to Rs1,240 billion. She also noted that no new taxes would be introduced. “This is a zero-tax budget and also the largest development budget in Punjab’s history,” she stated.
The Chief Minister noted that despite record allocations, “no financial scandal has emerged.” This, she said, was due to improved financial discipline, e-tendering processes, and a strong focus on openness and good governance. Maryam Nawaz expressed dissatisfaction with the performance of the Punjab Revenue Authority, stating that “there is room for improvement,” and announced a shift in focus towards expanding the tax net rather then raising taxes.
E-Tendering Explained: E-tendering promotes transparency by making the bidding process accessible online, reducing opportunities for corruption and ensuring fair competition among contractors.
The government plans to launch 100 innovative development projects and 94 new public programs.The plan includes the construction or expansion of 12,000 kilometers of roads, with 700 roads currently under construction. The government is also focused on health and education, promising free medicines and upgrades to public schools. Moreover, the minimum wage will be set at Rs40,000 and the government plans to digitalize wage systems.
Maryam Nawaz credited her team for their efforts, praising the senior minister and the chief secretary’s performance.She also acknowledged that her father,former Prime Minister Nawaz Sharif,lauded 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. The government is also considering a performance-based bonus system for civil servants, and the province has achieved a 94% reduction in local borrowing.
The 2025-26 budget is termed a “historic public service package.” Maryam Nawaz concluded by saying,”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 provided detailed briefings during the session.
In a post on social platform X, Senior Minister Marriyum Aurangzeb highlighted that the Annual Development Programme (ADP) had 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.
Punjab Budget Highlight
Chief Minister Punjab Maryam Nawaz Sharif has approved Punjab Annual budget.
Despite a comparatively compressed budget, the ADP has increased by 47% from 842 bn to 1240 bn while government operational expenses rose only by 3%, even after salary & pension… pic.twitter.com/dDmKSQIfwF– marriyum Aurangzeb (@Marriyum_A) June 16, 2025
Aurangzeb described the budget as a historic and strategic realignment of priorities, which marks a departure from outdated traditions under the chief minister’s “fearless and reformist leadership.”
Delving Deeper: Strategic Allocations and Future Outlook
Building upon the commitment to public welfare highlighted in the zero-tax budget, let’s explore the strategic allocations and the anticipated impact on Punjab’s citizens. The enterprising 2025-26 budget, spearheaded by Chief Minister Maryam Nawaz Sharif, isn’t just a financial plan; it’s a blueprint for a transformed punjab.
A key focus of the budget is the substantial increase in the Annual Development programme (ADP). This is a clear indication of the government’s dedication to improving infrastructure, education, and healthcare across the province. The significant 47% increase in ADP funding,bringing it to Rs1,240 billion,reflects a proactive strategy for growth and development.
so, where exactly is this funding going? While a detailed sector-by-sector breakdown of the Rs5.335 trillion budget awaits release, we can anticipate significant investments in several key areas.
- Healthcare: The promise of free medicines and expanded healthcare facilities will be a priority.Expect investment in hospitals, clinics, and healthcare professionals. This aligns wiht the government’s stated goal of improving public health.
- Education: Upgrading public schools and potentially expanding educational opportunities are high on the agenda. This could lead to more schools, better resources, and improved teacher training programs.
- Infrastructure: The construction and expansion of 12,000 kilometers of roads signals a massive infrastructure push. This investment aims to improve connectivity across the province, creating new economic opportunities.
- social Welfare: Expect increased funding for programs that support vulnerable populations. This might include initiatives focused on poverty reduction, social safety nets, and skills development.
How does a zero-tax budget work, and what are the potential challenges? The government aims to boost economic activity without introducing new taxes. This approach involves focusing on expanding the existing tax net and improving revenue collection efficiency. The aim to digitalize wage systems and introduce a performance-based bonus for civil servants will greatly assist in managing government spending and improving openness. The zero-tax approach aims to stimulate economic activity and provide relief to citizens, but it requires careful financial management and efficient revenue collection.
What’s Next? A Look Ahead at Key Initiatives
The government’s commitment extends beyond immediate financial allocations. Several forward-looking projects and initiatives are set to reshape Punjab in the coming years. These initiatives reflect a commitment to innovation, efficiency, and long-term sustainability.
here’s a glimpse of what’s on the horizon:
- E-Governance: Further digitalization of government processes is expected, including the expansion of e-tendering. The use of technology to improve transparency and reduce corruption will be significant.
- Skills Development: Programs to upskill and reskill the workforce are highly probable. This emphasis prepares citizens for the evolving needs of the job market and fosters economic growth.
- Public-Private Partnerships (PPPs): Further exploration of PPPs to deliver infrastructure projects more efficiently. This is an exciting area for attracting investments and accelerating development.
What specific measures are being taken to improve financial discipline and transparency? Maryam Nawaz’s government is implementing e-tendering, which promotes openness. The move to expand the tax net and improve revenue collection methods is also intended to boost financial discipline. These efforts aim to build confidence and ensure resources are effectively used.
FAQs
What is the primary goal of the 2025-26 Punjab budget?
The primary goal is to prioritize public welfare and drive economic growth through strategic investments in key sectors like healthcare, education, and infrastructure while maintaining a zero-tax approach.
How will the government ensure effective use of funds despite record allocations?
By implementing improved financial discipline, promoting e-tendering processes, and focusing on transparency and good governance. These measures will help prevent financial scandals.
What is the meaning of the increase in the Annual Development Program (ADP)?
The substantial 47% increase in the ADP, bringing it to Rs1,240 billion, reflects a proactive strategy for development. These funds will drive improvements to public services, infrastructure, and social programs.
What are some of the key challenges the budget might face?
While the zero-tax approach to increase economic activates will greatly help the citizens, the government needs to be careful in managing funds and ensuring efficient revenue collection.
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