Following the announcement of the federal budget, provinces now have to provide their financial outlay for the coming year. Punjab is up first, with an 18 percent increase in total since last year.

Importantly, the province has followed the centre in mandating a 10 percent increase in public employee salaries and bringing up the minimum wage to Rs20,000 in the country, but this was expected, as the ruling party’s majority in both the federal and Punjab government makes this alignment a forgone conclusion.

Out of the Rs2.56 trillion budget, the province has earmarked Rs200 billion for the development of health and education. Depending on the breakdown of this figure, it remains to be seen how effective this injection will be in two crucial sectors, but more might be needed considering how far we are in both these spheres.

South Punjab will get a substantial sum for development as well. However, this time the government looks to be committed towards ensuring that these funds set aside are only used in South Punjab and nowhere else.

Another key aspect for a province like Punjab is focus on agriculture in any budget outlay. With Rs31 million to be released for the agricultural development projects, it is clear that the government is looking to bring itself back into competition in the production and yield of food and other crops. This will be important; in order for Pakistan to maintain its competitive edge, it must not lose out on its staple commodities as it looks to diversify. Innovation and investment in the primary sector is hence crucial.

Overall, there are some promising indicators in this budget. The fact that it has sailed through parliament is a win for the government, but this does not mean the provincial setup can now rest. This is an instrumental financial year; the Punjab government must show that it can deliver in this year of expected growth.