Punjab finance minister presents Rs5,446 billion ‘tax-free’ budget for 2024-25

Punjab Finance Minister Mujtaba Shuja-ur-Rehman presented Rs5,446 billion ‘tax-free’ budget in the provincial assembly on Thursday amidst a protest by opposition members.

While giving the budget speech, Shuja-ur-Rehman announced the first “tax-free” budget of this government, highlighting that development has started in Punjab.

Focus on Inflation and Economic Development

Shuja-ur-Rehman emphasized that Chief Minister Maryam Nawaz has focused on tackling inflation, and initiating crackdowns on hoarders, adulterers, and profiteers.

He said that the total size of the budget is Rs5,446 billion, with total revenue estimated at Rs4,643.4 billion. Development expenses have been proposed at Rs842 billion, including 77 new mega projects in the annual development plan.

The current revenue target has been set at Rs960 billion, with the province expected to collect this amount from its own sources. The minimum wage is proposed to increase from Rs32,000 to Rs37,000.

Major Initiatives and Allocations

The finance minister announced several key initiatives:

He said that free solar systems will be provided to electricity users consuming up to 100 units.

He said that the biggest farmer-friendly package in the country’s history is being introduced, including model agricultural malls across Punjab at a cost of Rs1.25 billion and livestock cards at a cost of Rs2 billion. Additionally, he said rural farmers will receive loans on easy installments for dairy farming.

Highlights of Punjab Budget 2024-25

Budget Size: Rs5,446 billion

Tax Policy: No new taxes, no increase in existing tax rates.

Revenue Target: Rs960 billion.

Development Budget: Rs842 billion.

Salary and Pension: provincial employees’ salaries to increase by 20-25 per cent and pensions by 15 per cent.

Minimum Wage: Proposed increase from Rs32,000 to Rs37,000.

Education: Undergraduate scholarship programme launched at a cost of Rs2.5 billion.

Textile Industry: Establishment of Garment City at a cost of Rs3 billion.

Transport: Eco-friendly bus service in five major cities of Punjab at a cost of Rs49 billion.

Social Welfare: Launch of the Chief Minister Hamat Card Programme for disabled people at a cost of Rs2 billion and a skill development programme for the transgender community at a cost of Rs1 billion.

Health Services: Launch of Air Ambulance Service at a cost of Rs450 million.

Social Protection: Rs130 billion allocated.

Earlier today, a meeting of the provincial cabinet chaired by Chief Minister Maryam Nawaz approved the budget of Rs5,446 billion. The chief minister subsequently signed the budget document for 2024-25.

According to the documents, no new taxes have been imposed, nor have the rates of existing taxes been increased. Revenue is expected to increase by 53 per cent from financial sources without increasing taxes.

Last year, the revenue target was Rs625 billion, while the current revenue target is set at Rs960 billion, to be collected from provincial sources. The budget also includes allocations of Rs35 billion for the Lahore Redevelopment Authority, Rs5 billion for Murree, and Rs80 billion for the Chief Minister District Development Programme.

In the provincial budget, Rs30 billion have been set aside for the Chief Minister Green Tractor Programme, while Rs2 billion have been allocated for the Livestock Card, and Rs2 billion for the Himmat and Nighaban cards.

Support for Farmers

The Punjab Farmers Programme was a focal point of the budget. Rehman announced an unprecedented farmer-friendly package worth Rs75 billion , which will provide interest-free loans to 500,000 farmers. Additionally, loans for dairy farming will be available on easy installments, further supporting agricultural development, he said.

Business and Technological Advancements

Rehman highlighted the creation of a business-friendly environment within the province. He highlighted significant allocations include the revival of the PM laptop scheme with a budget of Rs10 billion and the establishment of Pakistan’s first IT city in Lahore, aimed at fostering technological innovation.

Social Welfare Initiatives

The budget includes a provision of Rs2 billion for the Nighaban Card, which aims to enhance social security. Furthermore, he said, households consuming up to 100 units of electricity will receive free solar systems, promoting sustainable energy use.

Housing and Infrastructure

He said that a substantial allocation of Rs10 billion has been made to houses for residents, addressing housing needs and improving living standards.

Rehman said that the budget reflects the Punjab government’s commitment to fostering economic growth, enhancing social welfare, and advancing technological infrastructure in the province.