Punjab to present Rs5.3 trillion budget for FY 2025-26 tomorrow

The Punjab government is set to unveil its budget for the fiscal year 2025–26 on Monday.

According to official details, the total budget outlay will exceed Rs5.3 trillion. Of this amount, Rs4,060 billion has been allocated for non-development expenditures, while Rs1,240 billion will go to the Annual Development Programme (ADP).

The development budget covers a total of 3,132 schemes. These include Rs535.98 billion earmarked for 1,441 ongoing projects, Rs470.62 billion for 1,663 new initiatives, and Rs233.40 billion for 28 previously approved development projects.

Out of the total ADP allocation of Rs1,240 billion, Rs1,115.70 billion will be financed through local resources, with Rs124.30 billion expected from foreign assistance.

Punjab Finance Minister Mujtaba Shuja-ur-Rehman said the budget would reflect Punjab Chief Minister Maryam Nawaz’s vision. He said no new tax would be introduced in the upcoming budget, but recovery of existing taxes would be ensured. He said that assets of the provincial government would be used effectively to increase the province’s income.

With Punjab now preparing to present its financial plan, Sindh and Khyber Pakhtunkhwa have already announced their provincial budgets following the federal government’s lead.

Separately, the Federal Board of Revenue (FBR) is expected to raise the tax-free cash withdrawal limit for non-filers from Rs50,000 to Rs75,000 per day, under the proposed Finance Bill 2025–26. Previously, non-filers could withdraw up to Rs50,000 daily without incurring advance tax.

During a briefing to the National Assembly Standing Committee on Finance, FBR officials proposed that withdrawals exceeding Rs75,000 would be subject to a 0.8% withholding tax, up from the current 0.6%. The measure aims to improve tax compliance and promote financial documentation.