The Punjab government, led by the PML-N, will present its third provincial budget on June 16, with no new taxes proposed, Provincial Finance Minister Mujtaba Shuja-ur-Rehman announced on Monday while addressing a pre-budget roundtable conference in Lahore.
Budget Focus on Public Welfare and Employment
The minister said the budget for the next fiscal year was being prepared on the directions of Chief Minister Maryam Nawaz Sharif, keeping public needs and welfare at its core. He emphasized that employment generation remained the government's top priority and that significant investments would be made in industrial infrastructure and economic zones to promote economic growth and create jobs.
Consultative Budget-Making Process
Addressing representatives of international donor agencies, chambers of commerce and industry, academia, the Institute of Chartered Accountants, agricultural and textile associations, media organizations, and civil society, the finance minister said Punjab was witnessing a first-of-its-kind consultative budget-making process. “For the first time in Punjab's history, stakeholders from all sectors are being given an opportunity before the budget to present their problems and recommendations. The objective is to formulate a truly public-oriented budget,” he said.
Government Performance and Flagship Programmes
Mujtaba Shuja-ur-Rehman informed participants about the Punjab government's performance over the past two years, claiming that unlike previous administrations, the current government had initiated work on all projects it announced and had already completed a number of them. He described the “Apni Chhat, Apna Ghar”, “Suthra Punjab”, “Kisan Card”, and “Ramazan Nigehban Package” initiatives as the government's flagship programmes.
According to the minister, 133,990 housing loans have so far been issued under the Apni Chhat, Apna Ghar programme. He added that the scope of the Suthra Punjab programme had been expanded from district and tehsil headquarters to rural areas and villages across the province. He said Rs106 billion had been allocated for the cleanliness programme last year, while Rs99.41 billion had been released during the current fiscal year. The successful sanitation arrangements made during Eidul Azha, he added, reflected the effective utilization of these funds.
Challenges and Austerity Measures
The finance minister acknowledged that the outgoing fiscal year had been challenging for both the federal and provincial governments. He pointed out that Punjab had faced one of the worst floods of the century, affecting 27 districts. He claimed that under the leadership of Chief Minister Maryam Nawaz Sharif, Punjab became the first provincial government in the country's history to undertake rehabilitation and compensation efforts from its own resources without seeking federal assistance. Nearly Rs50 billion was distributed among flood-affected families, he said.
Referring to economic pressures arising from regional tensions, including the impact of conflict-related financial challenges linked to tensions between the United States and Iran, the minister said the provincial government had adopted austerity measures, reducing official fuel expenditures by up to 50 percent. He said the chief minister, provincial ministers, and parliamentary secretaries voluntarily forwent two months' salaries, while salaries of other members of the provincial assembly were reduced by 25 percent. The minister further stated that Rs750 million had been spent on providing free public transport facilities to citizens. Despite financial constraints, he said, the government had successfully implemented more than 100 major initiatives.
No New Taxes, Focus on Broadening Tax Net
Mujtaba Shuja-ur-Rehman emphasized that the pre-budget conference was not merely a symbolic exercise and assured participants that recommendations received from stakeholders would be incorporated into the budget wherever feasible. “At a time when the needs of Punjab's population of around 130 million far exceed available resources, the government is still not willing to impose any new taxes on the people,” he said. Instead, the government was focusing on broadening the tax net, promoting industrialization, and improving the ease of doing business to increase revenues and stimulate economic activity.
Future Pre-Budget Consultations
The finance minister announced that the upcoming budget would prioritize the development of economic zones and industrial infrastructure, alongside concrete measures aimed at supporting all sectors of industry. Participants from chambers of commerce, academia, media, and civil society welcomed the consultative process and offered a range of proposals for consideration in the provincial budget. The minister also announced that future pre-budget roundtable conferences would be held in May each year to ensure that stakeholder recommendations could be incorporated into the budget process in a timely manner.
