The Punjab government has presented a tax-free budget for the next financial year, proposing a 25% increase in government employees’ salaries and a 15% increase in pensions. Ur Rehman delivered the budget speech for 5446 billion rupees, beginning with tributes to Nawaz Sharif, Maryam Nawaz, and Shehbaz Sharif. He emphasized the positive impact of Prime Minister Shahbaz Sharif’s central policies and Chief Minister Maryam Nawaz Sharif’s provincial initiatives, highlighting a record remittance of 3.2 billion dollars from overseas Pakistanis. The current inflation rate is recorded at 11.8%, the lowest in the last 30 months.
The provincial minister emphasized reforms in the government system, enhanced transparency, deficit reduction, and significant cuts in government expenses. He noted a 150 basis points reduction in the interest rate, record agricultural production, historic stock exchange highs, and restored relations with friendly countries, fostering a favorable business environment. The minister assured that the budget aims to provide relief to people and accelerate development, making it the largest development budget in Punjab’s history, with 100% cash cover.
The budget plans to reduce the size and expenditure of the government while increasing provincial revenues without burdening poor citizens. The inclusive budget considers the needs and interests of all societal segments, including urban and rural residents, factory owners, laborers, farmers, daily wage earners, salaried individuals, businessmen, students, skilled workers, housewives, professionals, doctors, patients, and special persons.
The provincial finance minister highlighted the budget’s total volume of 5446 billion rupees, with estimated revenues of 4643.4 billion rupees and 3683.1 billion rupees expected from the NFC. Provincial revenues are projected to increase by 54% to 960.3 billion rupees. The Punjab Revenue Authority is expected to collect 300 billion rupees (a 25% increase), the Board of Revenue 105 billion rupees (a 6% increase), and the Excise Department 57 billion rupees (a 25% increase). Non-tax revenue is estimated to rise by 111% to 488.4 billion rupees.
For the next fiscal year, 603.1 billion rupees are allocated for salaries, 451.4 billion rupees for pensions, and 857.4 billion rupees for local governments. Additionally, 9.5 billion rupees are allocated for the Chief Minister’s Roshan Gharana Program to provide electricity bill relief and free solar installations for the public.
