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Punjab Unveils Transformative Budget for FY 2025-26: Rs 2,36,080 crore allocated with Key Priorities on Social reform, infrastructure development, and public welfare

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March 26, 2025
in Chandigarh, Punjab
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Chandigarh, March 26

The Punjab Government, under the leadership of Chief Minister Bhagwant Singh Mann, unveiled its transformative budget for the financial year 2025-26, marking a historic milestone in Punjab’s progress. With an unprecedented allocation of Rs 2,36,080 crore, the “Badlda Punjab” budget reflects the state’s commitment to social reform, infrastructure development, and public welfare. Presented by Finance Minister Advocate Harpal Singh Cheema in the Punjab Assembly today, this budget highlights a multifaceted approach towards addressing critical issues and fostering inclusive growth.

Among the budget’s pivotal priorities is the Yudh Nashian Virudh campaign, a robust initiative aimed at combating drug abuse and smuggling, particularly from across the border. The government has demonstrated its zero-tolerance policy towards drug smuggling with groundbreaking measures such as establishing a second line of defense at the border by deploying 5,000 home guards alongside the BSF.—an unparalleled move in India to fortify national security. Punjab also leads the way in modern anti-drone technology, installing state-of-the-art systems to thwart drug and arms trafficking. A budget of Rs 110 crore has been allocated towards these initiatives for FY 2025-26.

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 Furthermore, the introduction of the country’s first drug census with proposal to spend Rs 150 crore on this initiative in FY 2025-26, signifies an innovative step towards understanding the extent of drug addiction, collecting data from every household to devise targeted rehabilitation strategies. This revolutionary initiative underscores the government’s commitment to not only law enforcement but also societal transformation.

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Rolling out a Mega Sports Initiative never seen before in the history of the state called “Khed-da Punjab, Badalda Punjab”, Finance Minister proposed a budget estimate of Rs. 979 crore for FY 2025-26 an increase of 355 percent in comparison to revised budget estimates of FY 2024-25. This amount is greater than the amount that the Akali-BJP and Congress governments jointly spent on Sports in 10 years from 2012 to 2022. The “Khed-Da Punjab, Badalda Punjab” campaign is poised to revolutionize the sports culture, with plans to establish 3000 world-class indoor gyms across the state. The Punjab Government will also upgrade and modernize the 13 existing Centers of Excellence. Additionally, international-level sports facilities and targeted schemes will provide players with unparalleled resources, promoting a thriving sports ecosystem besides channelizing the energy of Punjab’s youth away from drugs.

Safety and security of citizens remain paramount in this budget, as evidenced by allocation of Rs. 11,560 crore for Home Affairs, Jails, Law and Justice. Punjab’s 112 emergency response service will now boast the fastest response time in India, reduced from 30 minutes to an impressive 8 minutes. Modern equipment, high-tech control rooms, and new vehicles are set to strengthen the police system, ensuring quick action on even minor incidents and guaranteeing safety to every resident. The Finance Minister announced an allocation of Rs. 125 crore towards buying new Emergency Response Vehicles and an allocation of Rs 53 crore towards building the new ‘Dial 112’ headquarters in FY 2025-26.

Highlighting the initiatives taken in the healthcare sector, the another priority sector of the Bhagwant Singh Mann led Punjab Government, Finance Minister Harpal Singh Cheema proposed a budget estimate of Rs. 5,598 for Health and Family Welfare with an increase of 10 percent in comparison to revised budget estimates of FY 2024-25. He mentioned huge progress towards universalizing access to primary health care by setting up 881 Aam Aadmi Clinics which provide free doctor consultation, free medicines and free tests to every person, Finance Minister proposed a budgetary allocation of Rs 268 crore in FY 2025-26 for this purpose.

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The Finance Minister also announced that the Bhagwant Singh Mann led Punjab government has decided to extend the state health insurance scheme in the coming year to make it universal and cover all the 65 lakh families of Punjab. The second big decision is to extend the insurance cover to Rs. 10 lakh per annum from Rs 5 Lakh per annum. Rs. 778 croren allocated in the budget for initiative designed to alleviate the burden of healthcare costs and provide every resident access to superior medical care.

Rural development has taken center stage, with a comprehensive “Badalde Pind, Badalda Punjab” plan to rejuvenate villages across Punjab. A large-scale revival of ponds will emphasize clean water and conservation by cleaning and rejuvenation of village ponds, setting up sewage treatment systems, restoring Nehri Khaals to provide canal water, and construction of village playgrounds while the Chief Minister Street Light Scheme aims to illuminate every village. To turn this vision to reality, a total of Rs 3,500 crore will be spent under this initiative next fiscal year.

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Besides this, Punjab is poised to witness the largest improvement in road networks, including the reconstruction of 18,944 kilometers of rural link roads—a plan unmatched in the state’s history. In FY 2025-26, Rs 2,873 crore will be spent towards the programme of construction and upgradation of rural link roads by the Punjab Mandi Board.

Urban development, too, receives a significant boost with the construction of world-class roads and European-standard infrastructure in major cities. The government’s ambitious vision seeks to introduce a pilot project worth Rs 140 crore to construct European-standard roads over a 50-kilometer stretch in four cities: Ludhiana, Amritsar, Jalandhar, and S.A.S. Nagar (Mohali).

Enhanced water supply, sewerage, street lighting, and sanitation systems in 166 cities will further elevate the quality of urban living, paving the way for a smart city model that prioritizes environmental protection and cleanliness through solid waste management and efficient cleaning systems. Rs 225 crore has been allocated under the Punjab Municipal Development Fund towards this initiative.

The Mann government’s “Badlda Punjab” budget not only sets a benchmark for innovative governance but also reflects an unwavering dedication to the development and well-being of its citizens. With visionary initiatives spanning drug reform, public safety, health, sports, and infrastructure, this budget embodies the promise of a prosperous and progressive Punjab.

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