Punjab announces 10pc salary hike, 5pc pension raise in budget 2025-26
Business
Punjab cabinet approves Rs5,335bn budget for FY2025-26 with focus on development
LAHORE (Dunya News) – The Punjab cabinet, under the leadership of Chief Minister Maryam Nawaz Sharif, has approved a budget worth Rs5,335 billion for the fiscal year 2025–26.
The budget includes a 10% increase in salaries for government employees and a 5% increase in pensions.
A major highlight is the 47.2% boost in development spending, with Rs. 1,240 billion allocated to uplift infrastructure and services across the province.
In the education sector, the cabinet approved a 21.2% increase, taking the total allocation to Rs811.8 billion, while the health sector’s budget was increased by 17%, reaching Rs630.5 billion. Agriculture was also prioritised with a 10.7% increase, assigning Rs129.5 billion to support farmers and boost production.
For foreign-funded projects, Rs171.7 billion has been proposed. Current expenditure has been estimated at Rs2,026.7 billion, while service delivery costs have been cut by 5.8%, down to Rs679.8 billion. Local governments will receive Rs934.2 billion under the new financial plan.
Read also: Punjab budget to be tax-free, says Azma Bokhari
Revenue targets include an FBR target of Rs14,131 billion, with Punjab’s share being Rs4,062.2 billion. The province’s own revenue goal stands at Rs828.1 billion, out of which tax revenue is projected at Rs524.7 billion and non-tax revenue at Rs303.4 billion.
The Punjab Revenue Authority’s collection target has been raised by 13% to Rs 340 billion, while the urban immovable property tax target is set at Rs. 32.5 billion. The Board of Revenue has been tasked with collecting Rs. 105 billion.
The budget outlines an expected surplus of Rs. 740 billion and targeted subsidies worth Rs. 72.3 billion.
