The Punjab government is set to unveil a Rs1202 billion development budget for the fiscal year 2025–26, with significant allocations aimed at enhancing education, healthcare, infrastructure, and governance. However, experts caution that long-term sustainability concerns appear to be largely overlooked.
The Punjab Assembly will convene on June 16 to present the provincial budget, as finalized by the Planning and Development (P&D) Department. The proposed development outlay is considered one of the largest in the province’s history, reflecting an ambitious investment agenda.
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Sector-Wise Allocations:
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Urban Development: Rs145 billion
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Local Government: Rs142 billion
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Road Sector: Rs120 billion
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Health and Population Welfare: Rs90 billion
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Agriculture: Rs80 billion
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Transport & Specialized Healthcare: Rs70 billion each
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School Education: Rs100 billion
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Planning & Development and Governance & IT: Rs40 billion each
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Irrigation: Rs40 billion
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Public Buildings: Rs25 billion
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Higher Education: Rs25 billion
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Industries: Rs12 billion
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Tourism: Rs30 billion
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Wildlife & Fisheries: Rs10 billion each
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Environment: Rs15 billion
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Skill Development: Rs12 billion
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Sports: Rs7.6 billion
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Energy: Rs7.5 billion
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Water Supply & Sanitation: Rs6 billion
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Price Control & Commodities Management: Rs5.51 billion
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Forestry & Livestock: Rs5 billion each
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Human Rights, Minority Affairs, Literacy: Rs4 billion each
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Social Welfare: Rs3 billion
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Special Education: Rs2 billion
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Information and Culture: Rs5 billion
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The proposed budget includes Rs892.78 billion in local funding, Rs184.49 billion from foreign sources, and an additional Rs124.73 billion allocated for other development initiatives.
The budget signals Punjab’s strategic priorities, with education and healthcare receiving considerable boosts. The School Education Department is allocated Rs100 billion, and the Specialized Healthcare sector is allotted Rs70 billion, reflecting the province’s aim to improve social services.
Meanwhile, urban development, roads, and local government will also see heavy investments, underlining Punjab’s emphasis on infrastructure expansion and municipal strengthening.
While the expansive budget marks a bold developmental vision, critics argue that there is little mention of long-term fiscal sustainability, climate resilience, or reforms in resource mobilization.
The development outlay aligns with the federal budget’s broader framework, which allocated Rs8.2 trillion to provinces under the National Finance Commission (NFC) Award. Punjab’s Rs1202 billion plan represents its share of this fiscal decentralization.
As the province heads into the budget session, all eyes will be on how the government balances development ambitions with economic realities and fiscal prudence.
