Education, health get big boost
Punjab Finance Minister Mian Mujtaba Shujaur Rehman on Monday presented a Rs5,335 billion surplus budget for financial year 2025-26 in the provincial assembly amid strong protest by the opposition.
In the next fiscal year, the government estimated Rs4,062.2 billion federal transfers from the Federal Divisible Pool, while Rs828.2 billion would be generated from the province's own resources under the head of provincial revenue.
The government allocated Rs2,706.5 billion for the non-development expenditures – a 6% increase over expenditures in the outgoing fiscal year – which included salaries, pensions, PFC transfers and service delivery. The current capital expenditures was estimated at Rs590.2 billion.
"I am glad to inform that the Punjab government is going to present a record development budget of Rs1,240 billion which is 23% of the total budget and 47% higher than the current year's development outlay," the finance minister said in his speech.
He added that it was a matter of satisfaction that the proposed expenditures under Account-II (Food) had come to Rs58.3 billiona decline of 88% compared to fiscal 2024-25.
"And its prime reason is the reduction in financial burden from national exchequer through payment of the circular debts accumulated over several decades which is glaring evidence of our government's best economic planning and that also caused 94% decrease in payments of the internal debts."
Empowering the local governments, the minister told the house, the provincial government allocated Rs764.2 billion under the head of the PFC Award. Rs150 billion were earmarked for waste management and municipal corporations.
Education
The provincial government has allocated Rs661 billion for education which is 24.4% of the total non-development expenditures. While Rs148 billion has been allocated under the head of development in coming fiscal year for the education sector which is 127% higher than 2024-25.
The government had awarded laptops to 40,000 students of universities and colleges through the Chief Minister Punjab Laptop Scheme initiated with Rs27 billion and Rs10 billion, respectively. To promote digital education, the government also earmarked Rs15.1 billion for this purpose through which 112,000 students will be given laptops in the coming year.
An amount of Rs15 billion was allocated for the Honahar Scholarship Programme wherein efficient and deserving students will be given opportunities of the best education.
For the first time, the government has allocated Rs40 billion for renovation of the dilapidated buildings, missing facilities, IT Labs, extra class rooms in government schools through the school management councils under the Punjab Education Initiative Management Authority (PEIMA).
Rs35 billion has been earmarked for the provision of education through private participation under Punjab Education Foundation (PEF). With Rs3 billion, a project of establishing the Nawaz Sharif Centre of Excellence for early childhood education is being started in 10 divisions. Eight new government-affiliated colleges for girls are being established in the province with Rs2 billion.
For the first time in Punjab's history, that provincial government earmarked Rs25 billion for universities for the promotion of higher education. Rs2billion has been allocated for Mian Nawaz Sharif Engineering and Technology University.
Health
The government earmarked Rs181 billion for health sector under the head of development in the next fiscal year, which is 131% higher than the current fiscal year. Under the non-development head, the government allocated Rs450 billion for next fiscal year which is 16% of the total non-development expenditures.
The government earmarked Rs109 billion for for establishment of Nawaz Sharif Medical District and Land Acquisition. Under this medical district, Rs54billion will be spent on seven new projects being initiated in Lahore City.
The new projects include Children Hospital-II and Institute of Genetic Blood Diseases; Institute of Surgical Orthopaedic and Medical Rehabilitation; Specialised Medical Hospital and Medical College; 1,000-bedded Cardiac Institute; Medical University; State-of-the-art diagnostic lab; and Centre of Excellence for Nursing Education.
The government allocates Rs16 billion for establishing medical colleges in Narowal, Okara and Layyah. The project of establishing burn units in Bahawalpur and Rahimyar-Khan at a cost of Rs4 billion has also been made part of this budget.
Rs79.5 billion has been allocated for free medicines at government hospitals. In 2024-25, Rs56 billion was earmarked for this purpose, through which over 20 million patients were benefitted with free medicines worth Rs11.1billion.
The provision of quality medical treatment with Rs25 billion under the Universal Health Insurance Programme is also included in the priorities of this budget.
Rs3.2billion has been earmarked for the Chief Minister's Paediatric Heart Surgery Programme, Rs3.6billion for the Chief Minister's Special Initiative for Transport Programme, Rs8.7billion for the Chief Minister's Dialysis Programme, Rs3billion for Cath Labs, Rs9 billion for the Maryam Nawaz Health Clinics Programme and Rs12.6 billion for the Maryam Nawaz Community Health Programme through the community health inspectors.
Two projects of worth Rs20billion has been made part of this budget aimed at upgradation of the BHUs across Punjab. The government earmarked Rs2billion for provision of fire services in 39 tehsils and Rs2billion for establishing the rescue stations in 33 new tehsils and towns.
Agriculture
The government earmarked Rs123 billion under the development head and Rs56.2 billion under the non-development head in the coming fiscal year for agriculture, livestock, irrigation and water.
The government allocated Rs80 billion for agriculture sector, which is 24% higher than the current fiscal year. Green Tractor Scheme's Phase-II will be initiated with Rs5.5 billion and a new project under the banner of High-Power Tractor Programme will be initiated with Rs10 billion.
For the Kisan Card, the government earmarked Rs6.3 billion, while Rs8.7 billion for solarisation of agriculture tube-wells schemes.
The government earmarked Rs8 billion for Chief Minister's Water Efficient Agriculture (2025-27) – a project which is being initiated for the construction, conservation and efficient utilisation of water resources for agriculture purposes to help line the watercourses.
Rs25 billion has been earmarked for three projects – establishment of water reservoirs; water conservation and water use efficiency; and the water infrastructure development and establishment of water storage.
The government estimated Rs9 billion to meet the water's deficiency at Kasur with a project titled the New Ravi Syphon. A dam will also be constructed at Rawalpindi with Rs4.2 billion for watering 2,280 acres of agriculture land.
Climate resilience
To implement the Climate Resilient Punjab Vision, different projects have been made part of the climate budget, tagging a framework of Rs795 billion which is 64% of the total development budget. Out of which Rs277.4 billion is allocated for climate adaption, Rs371.7 billion for climate mitigation, Rs146 billion for environment protection.
Rs40 billion under the development head and Rs12.9 billion under the non- development head have been earmarked for environment protection, forest and wildlife. To deal with environment dangers like smog, the government earmarked Rs5.7 billion for the Punjab Clean Air Programme.
Governance and law, order
The government allocated Rs35 billion under the development head and Rs4 billion under the non-development head for governance and IT sectors. The government earmarked Rs10 billion under the development and Rs290 billion under non-development head.
To enhance efficiency of the police department, the government allocated Rs200 billion under non-development head. A new 'Crime Control Department' is being established with Rs3.3 billion under non-development head, while Rs3.24 billion under the development head to stop heinous nature crimes.
Other allocations
The government allocated Rs336 billion to infrastructure development sector, which is 27% of the total development budget. Rs4 billion is earmarked for the energy sector; Rs31.4 billion under development and Rs107.3 billion under non-development head for the social protection and welfare.
The government allocated Rs19.2 billion for 62 development schemes for the welfare of the women. The government allocated Rs28 billion under the development head and Rs1.3 billion under the non-development head to the tourism, archaeology and museums.
Opposition protest
As the budget speech started, the opposition lawmakers assembled near the chair of the speaker. They tore up the budget books and chanted slogans against the budget, terming it anti-poor people.
Chief Minister Maryam Nawaz was present in the House. The Opposition tried its best to disrupt the finance minister's speech through their noisy protest but all in vain as Rehman continued his speech.
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