Punjab’s Finance Minister Mujtaba Shujaur Rehman is set to present the province’s budget for fiscal year (FY) 2025-26. According to reports, the budget was approved during a cabinet meeting chaired by Chief Minister (CM) Maryam Nawaz and will be presented before the Punjab Assembly on June 16.

 

This follows the recent release of Sindh and Khyber Pakhtunkhwa’s provincial budgets

 

Punjab’s Finance Minister has revealed that the budget will showcase the vision of CM Punjab and will be easy on the general public. Reports indicate that the new budget will not introduce new taxes as the provincial government intends to boost tax collection levels by increasing compliance with existing taxes.

 

Punjab’s strategy to boost collections by boosting compliance is in line with the federal government’s framework. Recent reports suggest that the Federal Board of Revenue’s (FBR) Chairman, Rashid Mahmood Langrial, announced crackdowns on non-compliant businesses to increase revenue inflows. Punjab could witness a similar boost in revenues in the upcoming fiscal year if it increases compliance as well.

 

The finance minister has indicated that the provincial government will leverage its assets to boost revenues. Notable expenditures include funding for social, health, and education initiatives. Moreover, reports suggest that the provincial government is set to aid businesses by disbursing monetary and technical assistance to small and medium-sized enterprises.

 

Details from reports suggest that Punjab’s outlay for FY 2025-26 will sit at Rs5.3 trillion. 23.39 per cent of the budget will be set aside for the  Annual Development Programme (ADP), while approximately 76.6 percent of the budget will cover non-development expenditures.

 

Reports reveal that the development budget will fund a staggering 3,132 schemes, with 1,663 initiatives being new. Punjab will reportedly acquire Rs124.3 billion from foreign sources to fund development initiatives.

 

In other similar developments, Balochistan is expected to announce its budget on June 17. Reports indicate that Balochistan could announce a hike in salaries and other monetary benefits for government employees. This belief holds weight as protests have reportedly broken out recently over the issue of the poor pay public officials receive.

 

According to reports, Balochistan’s outlay for FY 2025-26 will cross Rs1 trillion, which pales in comparison to Punjab’s and Sindh’s budget of Rs5.3 trillion and Rs3.45 trillion, respectively.

 

However, unlike Sindh, Balochistan’s budget will likely feature a surplus. Reports have outlined Balochistan’s commitment to maintaining fiscal discipline, as a surplus for FY 2025-26 will mark the second consecutive surplus for the province.