Punjab Budget 2025–26: Salaries, Development Spending See Major Hike

The Punjab government has announced key financial allocations for the fiscal year 2025–26, including a 10% increase in salaries for government employees and a 5% rise in pensions for retired personnel.

A significant highlight of the budget is the 47.2% increase in the development budget, with an allocation of Rs. 1,240 billion. Additionally, Rs. 171.7 billion has been earmarked for foreign-funded projects.

READ MORE:

PSX 100-Index Inches Up by 82 Points Amid Range-Bound Trading

The province’s ongoing expenditure has also seen a modest rise of 5.9%, totaling Rs. 2,026.7 billion. However, service delivery expenditure witnessed a 5.8% reduction, now set at Rs. 679.8 billion.

In a major push towards education, the Punjab government increased the sector’s budget by 21.2%, allocating Rs. 811.8 billion, making it one of the largest investments in the current fiscal plan.

These measures reflect Punjab’s efforts to boost public sector support, infrastructure development, and human capital investment, while aiming for fiscal discipline.