Punjab Unveils Rs5.3 Trillion Zero-Tax Budget with Record Development Outlay

“This is a historic public service package. Power

is a trust from God; serving people is our mission,”

said CM Maryam during her budget address

Business Reporter

Lahore: Punjab Finance Minister Mujtaba Shuja ur Rehman on Monday presented a Rs5,335 billion budget for fiscal year 2025–26, calling it a “people-friendly” and development-driven plan, in line with the vision of Chief Minister Maryam Nawaz Sharif.

The budget was approved during the 27th provincial cabinet meeting chaired by CM Maryam, who declared the 2025–26 plan a “zero-tax budget” with the largest Annual Development Programme (ADP) in Punjab’s history.

“This is a historic public service package. Power is a trust from God; serving people is our mission,” said CM Maryam during her budget address.

Rs1,240 Billion Development Budget Without New Taxes

The development budget has been increased by 47%, from Rs842 billion to Rs1,240 billion, marking the largest ADP in the province’s history, with no new taxes imposed.

“Every rupee is a public trust,” the chief minister said, stressing the importance of transparency, financial discipline, and good governance.

CM Maryam credited the improved e-tendering process and financial oversight for ensuring that “no financial scandal” had surfaced despite the record allocations.

Focus on Roads, Health, Education, and Digital Reforms

The government announced 100 new development projects, 94 public welfare programmes, and work on 12,000 kilometres of roads, of which 700 are currently under construction.

In the social sector, she vowed to upgrade public schools, provide free medicines in hospitals, and ensure digitalisation of wage systems. The minimum wage has been raised to Rs40,000.

Performance-Based Governance and Fiscal Discipline

Despite IMF constraints, CM Maryam said Punjab achieved a Rs740 billion surplus and reduced local borrowing by 94%. She hinted at launching a performance-based bonus system for civil servants and criticised the Punjab Revenue Authority for underperformance, urging expansion of the tax net rather than rate hikes.

Cabinet Applauded for Strategic Budgeting

Former Prime Minister Nawaz Sharif praised the budget and the cabinet’s efforts. CM Maryam particularly lauded the roles of Senior Minister Marriyum Aurangzeb and Finance Minister Mujtaba Shuja ur Rehman for aligning fiscal priorities with public service reforms.

In a post on X (formerly Twitter), Marriyum Aurangzeb said,

“This budget marks a strategic realignment under fearless leadership. Operational expenses only increased by 3% despite salary and pension rises.”