Punjab budget reflects deliberate realignment of fiscal priorities?
LAHORE: The structure of the Punjab budget for FY 2025–26 reflects a deliberate and disciplined realignment of fiscal priorities.
While curtailing non-essential current expenditure, the government has expanded development spending through the largest-ever Annual Development Programme (ADP) in Punjab's history, with 47.3% increase over previous year's ADP.
This expansion has been made possible through robust public financial management reforms, including but not limited to the successful retirement of unsustainable commodity operations debt.
As per budget document, this year's budget reflects a strategic shift from foundational infrastructure to transformative development. While the first year focused on road connectivity and basic service delivery, FY 2025–26 marks the next logical step i.e., empowering communities through integrated urban development and rural uplift. Transport has emerged as a key priority with a focus on expanding eco-friendly public mobility options, including the introduction of electric buses to reduce urban congestion and environmental impact.
The Punjab government has also placed unprecedented emphasis on education—expanding access through scholarships, laptops, school meals, and higher education grants. Health remains a cornerstone, with flagship health initiatives such as Medical City, free medicine, and new centres for cancer and cardiac care. New frontiers in IT, affordable Housing and Climate Action signal the province's ambition to build an inclusive, forward-looking economy, the budget document reveals.
On the other hand, the Punjab government, in view of its rapidly increasing annual pension expense and burgeoning accrued pension liabilities accorded approval of the Defined Contribution Pension Scheme. Under the scheme, employees would be contributing for its pension contrary to the defined benefit scheme where government finances solely to the pension. This would significantly reduce the piling of accrued liability, and this has been enacted for the employees joining the government service on or after January 08, 2024.
Moreover, the Punjab government has implemented the deregulation of commodity operations of wheat which previously was financed through commercial borrowing from the financial institutions. The scheme had accumulated a circular debt of Rs 629 billion outstanding at June 2022 due to unfunded general subsidy expenditure.
The government has eliminated this debt from provincial revenues leading to reduction of commodity debt outstanding down to Rs 13.9 billion at April`25, which is fully backed by the wheat stock leveraging the saving of future debt service in the range of approximately Rs 50 billion per annum.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Punjab budget reflects deliberate realignment of fiscal priorities?
LAHORE: The structure of the Punjab budget for FY 2025–26 reflects a deliberate and disciplined realignment of fiscal priorities. While curtailing non-essential current expenditure, the government has expanded development spending through the largest-ever Annual Development Programme (ADP) in Punjab's history, with 47.3% increase over previous year's ADP. This expansion has been made possible through robust public financial management reforms, including but not limited to the successful retirement of unsustainable commodity operations debt. As per budget document, this year's budget reflects a strategic shift from foundational infrastructure to transformative development. While the first year focused on road connectivity and basic service delivery, FY 2025–26 marks the next logical step i.e., empowering communities through integrated urban development and rural uplift. Transport has emerged as a key priority with a focus on expanding eco-friendly public mobility options, including the introduction of electric buses to reduce urban congestion and environmental impact. The Punjab government has also placed unprecedented emphasis on education—expanding access through scholarships, laptops, school meals, and higher education grants. Health remains a cornerstone, with flagship health initiatives such as Medical City, free medicine, and new centres for cancer and cardiac care. New frontiers in IT, affordable Housing and Climate Action signal the province's ambition to build an inclusive, forward-looking economy, the budget document reveals. On the other hand, the Punjab government, in view of its rapidly increasing annual pension expense and burgeoning accrued pension liabilities accorded approval of the Defined Contribution Pension Scheme. Under the scheme, employees would be contributing for its pension contrary to the defined benefit scheme where government finances solely to the pension. This would significantly reduce the piling of accrued liability, and this has been enacted for the employees joining the government service on or after January 08, 2024. Moreover, the Punjab government has implemented the deregulation of commodity operations of wheat which previously was financed through commercial borrowing from the financial institutions. The scheme had accumulated a circular debt of Rs 629 billion outstanding at June 2022 due to unfunded general subsidy expenditure. The government has eliminated this debt from provincial revenues leading to reduction of commodity debt outstanding down to Rs 13.9 billion at April`25, which is fully backed by the wheat stock leveraging the saving of future debt service in the range of approximately Rs 50 billion per annum. Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
Transfers & postings of judges
LAHORE: The Lahore High Court on Tuesday issued transfer and posting orders of 63 additional district & sessions judges. The registrar of the high court issued a notification, which requires the judicial officials to assume charge at their respective place of posting on or before June 28. Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
Punjab Excise Dept achieves record recovery of Rs53.6bn
LAHORE: The Punjab Excise, Taxation and Narcotics Control Department have demonstrated outstanding performance in the fiscal year 2024-25, achieving a historic revenue recovery of Rs 53.6 billion so far. This represents 98% of the annual target of Rs 55 billion. For the first time in the department's history, revenue collection has exceeded Rs 50 billion, a major milestone in the province's revenue generation efforts. These figures were shared during a high-level Directors Conference chaired by Director General Excise Punjab Muhammad Umar Sher. The performance of all regional offices was reviewed in detail, with Faisalabad, Gujranwala and Lahore identified as the top-performing regions. In the month of June alone, revenue recovery surpassed Rs 2.69 billion. Addressing the conference, DG Muhammad Umar Sher instructed all regional directors to formulate micro-level plans to ensure 100% recovery of dues. He emphasized taking decisive action against unregistered vehicles, heavy machinery and token tax defaulters. Immediate and mandatory registration of all vehicles was stressed as a key priority. The DG further stated that no negligence in tax collection will be tolerated. All regional directors have been directed to strengthen recovery through teamwork, strict monitoring and active field visits. Each division has been instructed to prepare and implement its own micro-plan to ensure full achievement of the remaining targets. Muhammad Umar Sher attributed the department's success to effective teamwork, sound policy-making and practical efforts in the field. He expressed confidence that the same spirit and dedication will continue to drive the department's progress in the future. Copyright Business Recorder, 2025
