Under the leadership of Chief Minister Maryam Nawaz Sharif, the Punjab government proposed its first annual budget for the fiscal year 2024–2025 on 13 June 2024. In his budget speech, Punjab’s Finance Minister Mujtaba Shuja-ur-Rehman announced a historic budget of Rs5.3 trillion, making it the largest ever for Punjab. Notably, the budget is surplus, signalling a positive shift in the province’s economic landscape. Amid challenging economic conditions, the elimination of the budget deficit has been welcomed as a refreshing change. This budget allows the Punjab government to implement various development and welfare initiatives for the people of the province.
The Punjab government has allocated Rs4,465 billion and a record-setting development budget of Rs842 billion. This historic financial plan aims to balance resources between urban and rural areas, ensuring equitable growth across the province. Special attention has been given to the development of south Punjab, highlighting the government’s commitment to uplifting all regions. By focusing on infrastructure, health, and education, the budget promises to drive significant progress and improve the quality of life for the people of Punjab.
Under Chief Minister Maryam Nawaz Sharif’s leadership, the Punjab government has achieved a milestone by reducing its debt from Rs1708 billion to Rs1685 billion.
This budget increases salaries for employees in grades 1-16 by 25 per cent and for grades 17-22 by 20 per cent. Pensions have been raised by 15 per cent, and the minimum wage increased from Rs32,000 to Rs37,000 per month. Punjab’s budget is softer on taxation, featuring measures like free solar panels for electricity consumers using less than 100 units per month. Additionally, Rs10 billion has been allocated for small housing projects across the province.
Agriculture receives substantial support, with Rs75 billion in interest-free loans available to half a million farmers. The Green Tractor Scheme offers interest-free loans for tractor purchases. Model agriculture malls are planned, costing Rs1.25 billion, and livestock cards worth Rs2 billion will be introduced. Shrimp farming is also a focus, with Rs8 billion earmarked for this purpose, which includes a model shrimp farm in Lahore costing Rs5 billion.
Infrastructure improvements are prioritised, with Rs296 billion allocated to construct 2,380 km of roads and Rs135 billion for repairing existing roads through 482 schemes. In education, Rs2.5 billion have been allocated for undergraduate scholarships and Rs2.97 billion for the Chief Minister’s Skills Development Programme aimed at boosting the textile industry. The government has revived the PML-N’s flagship laptop scheme, with a Rs10 billion allocation.
Health initiatives include a significant Rs56 billion investment in the Nawaz Sharif Institute of Cancer Research in Lahore and Rs8.84 billion for the Institute of Cardiology in Sargodha. Special provisions are made for differently-abled children, transgender individuals, and minorities.
The budget also proposes amendments to the Urban Immovable Property Tax Act, shifting from a rental-based valuation to a capital value system and bringing properties valued above Rs5 million into the tax net. This change affects many previously exempt properties in urban centres such as Lahore, Rawalpindi, Faisalabad, and Multan.
This budget, crafted under the guidance of Chief Minister Maryam Nawaz Sharif, is a comprehensive effort to promote sustainable development, economic growth, and social welfare.
The vehicle registration regime will shift taxation from engine capacity to vehicle value, capturing more revenue from high-value vehicles.
Additional revenue measures include raising court fees and stamp duties, with the Board of Revenue proposing amendments to the Court Fees Act, 1870, and the Stamp Act, 1899. On the recommendation of the Mines and Minerals Department, the government will increase the labour welfare cess on mining extracts, which had remained unchanged since 1979, to support mining industry workers.
Renewable energy projects receive strong backing, with Rs9 billion allocated to connect 7,000 tube wells throughout the province to solar power. Further, Rs7.5 billion has been allocated for renewable energy schemes, including Rs2,880 million for ongoing projects and Rs4,620 million for new ones. Specific allocations include Rs228.837 million for solarising public buildings in Lahore, Rs259.1 million for solarising 100 higher secondary schools, and Rs301.115 million for solarising hospitals and rural healthcare centres. Upcoming projects ‘The Punjab Ujala Programme’ and ‘The Chief Minister’s Roshan Gharana Programme’ also receive significant funding.
It is worth noting that under Chief Minister Maryam Nawaz Sharif’s leadership, the Punjab government has achieved a milestone by reducing its debt from Rs1708 billion to Rs1685 billion. This reduction, even if modest, has been driven by transparent and people-friendly policies and signals a positive direction towards relieving financial burdens. The government’s commitment to fiscal responsibility is set to further lower the debt, promising relief for the people.
This budget, crafted under the guidance of Chief Minister Maryam Nawaz Sharif, is a comprehensive effort to promote sustainable development, economic growth, and social welfare. The emphasis on tax relief, infrastructure, agriculture, and renewable energy is in line with the promises made by the party in its election manifesto.
The writer is a political activist and works in youth development.
