CHANDIGARH, 2nd February 2026:
Punjab Finance Minister Harpal Singh Cheema on Sunday called out the BJP-led Centre for completely ignoring Punjab’s needs and sacrifices in Union Budget 2026, pointing out that there is no mention of Punjab anywhere in the budget and no reference to the long-pending Rural Development Fund (RDF) of ₹8,500 crore that is legitimately due to the state.
Declaring the budget anti-farmer, anti-education and anti-health, the Punjab Finance Minister said Punjab has once again been pushed to manage on its own despite bearing the burden of national food security, facing the impact of repeated natural calamities and responsibly handling RDF-related obligations, while receiving no relief for common people and no meaningful support from the Centre for the 12th consecutive year.
Addressing a press conference at Punjab Bhawan, Punjab Finance Minister Harpal Singh Cheema said the budget represents a deliberate attempt to derail the growth of Punjab, a state that has made unparalleled sacrifices for the nation. “The mindset of the BJP in power at the Centre has become a big threat to the country’s democracy and especially Punjab. The Union Budget 2026 is anti-education, anti-health and inimical to the farmers, the poor, traders and even the security of Punjab. Through this budget, a nasty attempt has been made to derail the growth of Punjab, which has made great sacrifices for the country,” he said.
The Finance Minister said that Punjab has been completely sidelined for the 12th consecutive year in the budget presented by the BJP-led Central Government. “The memorandum submitted by Punjab to the Union Finance Minister has been blatantly ignored. Punjab has always stood firm in the defence of the country and has not reduced its contribution to the Central food pool. In fact, our contribution has increased every year. Because Punjab has continuously replenished the country’s food reserves, 117 blocks of the state’s groundwater have gone into the dark zone,” he said.
Taking strong objection to the approach of the 16th Finance Commission, the Punjab Finance Minister said the Centre has turned a blind eye towards the states. “The poor financial condition of states has been completely ignored. The vertical devolution, which is the total share of all states in the tax pool, has been kept unchanged at 41 percent. There is no increase at all despite the fiscal stress faced by states. The 16th Finance Commission has not recommended any Revenue Deficit Grants, whereas the 15th Finance Commission had done so. Conditions imposed on the State Disaster Response Fund (SDRF) are overly restrictive and will severely affect states like Punjab in effectively mitigating and managing disasters,” he said.
Minister Harpal Singh Cheema said the Union Government has once again ignored the legitimate concerns of Punjab’s farmers, exposing its hollow claims of being pro-farmer. “There is neither any increase in the Agriculture Infrastructure Fund nor any concrete assistance to strengthen mandi infrastructure. There is absolutely nothing for farmers of Punjab in terms of increased allocation to the Agriculture Infrastructure Fund or for strengthening mandi infrastructure in Union Budget 2026. States will now be forced to do all this from their own funds. The budget talks about high-value crops but has completely left out Punjab,” he said.
The Punjab Finance Minister pointed out that farmers of Punjab feed the nation, yet the Union Government continues to neglect investment in systems that ensure food security. “The selective approach towards high-value crops is deeply discriminatory. The budget mentions crops like coconut, cashew, sandalwood and dry fruits, but there is nothing for farmers in North India who depend on crops suited to their agro-climatic conditions. This budget clearly reflects the Centre’s bias and its continued indifference towards farmers of food grain producing states, especially Punjab. These farmers deserve respect, support and appropriate investment, not empty slogans,” he said.
Criticising the reduction in subsidies and the absence of relief for common citizens, Minister Harpal Singh Cheema said, “Urea subsidy has been reduced from ₹1,26,475 crore last year to ₹1,16,805 crore this year. There is nothing for the common people in this budget. There is zero tax relief at a time when incomes are stagnant and inflation is eating into the savings of common people. Instead, the Government of India has increased the Securities Transaction Tax, which will adversely impact the common man. There is also no relief on Long-Term Capital Gains. It is like squeezing the common man from all sides.”
On defence, the Punjab Finance Minister said expectations have been completely belied. “Given last year’s tensions with Pakistan, we were expecting major announcements to strengthen defence production and a meaningful increase in the defence budget. Nothing of that sort has happened. Defence finds mention only four times in the Union Finance Minister’s speech,” he said.
Referring to the PM-Vishwakarma Scheme, he said, “This scheme was launched last year with much fanfare to provide holistic, end-to-end support to traditional artisans and craftspeople. Instead of strengthening it, the budget allocation has been reduced from ₹5,100 crore to ₹3,861 crore. On one hand, the government claims this is a Yuva-Shakti Budget aimed at developing legacy industries, and on the other hand, it cuts the budget for a scheme meant exactly for that purpose.”
On education, Minister Harpal Singh Cheema termed the budget “deeply uninspiring”. “There is less than 10 percent growth, around 8 percent, in the education budget compared to last year. The allocation for the PM-SHRI scheme remains unchanged at ₹7,500 crore. There is no mention at all of Special Assistance to States for Capital Creation. All states had requested extension and enhancement of this scheme to sustain high levels of capital expenditure, but the Centre has ignored this demand,” he said.
On the health front, he said, “The Ayushman Bharat scheme budget remains unchanged at ₹9,500 crore. The Swachh Bharat Mission budget has been halved to ₹2,500 crore from ₹5,000 crore last year. Allocation under VB-G-RAM-G has been increased to ₹95,692 crore from ₹88,000 crore under MGNREGA, but at the same time, the Border Infrastructure and Management Scheme budget has been reduced from ₹5,597 crore last year to ₹5,577 crore in the current budget,” he added.
Summing up, the Punjab Finance Minister said the Union Budget 2026 reflects the Centre’s apathy towards Punjab and its people. “This budget ignores Punjab’s contribution, overlooks its challenges and undermines its future. It neither strengthens the nation’s security nor supports farmers, workers, youth or states. Punjab and its people deserve far better than this,” said Minister Harpal Singh Cheema.
