CHANDIGARH, 11 March 2026:
The Punjab Assembly on Wednesday passed the State Budget for the Financial Year 2026–27 presented by Finance Minister Harpal Singh Cheema after a comprehensive three day debate. Concluding the discussion in the House, the Finance Minister presented a detailed summary of the Aam Aadmi Party (AAP) government’s work over the past four years and responded to the queries and suggestions raised by various MLAs during the debate.
Punjab Finance Minister Harpal Singh Cheema stated, “Guided by AAP National Convenor Arvind Kejriwal’s anti corruption principles and Chief Minister Bhagwant Mann’s vision, the Punjab government’s zero tolerance policy toward theft has led to record breaking revenue growth. Excise revenue increased from ₹20,000 crore to ₹53,000 crore, while GST collections doubled from ₹61,000 crore to ₹1,21,000 crore. Additionally, stamp registration revenue rose significantly from ₹12,000 crore to ₹30,000 crore. This financial turnaround has been made possible through strict vigilance and honest governance.”
Referring to employment generation and the AAP government’s guarantees, Harpal Singh Cheema said, “When our government took its first Cabinet decision in 2022, we had promised to provide 30,000 government jobs. Today we have far exceeded that promise by delivering more than 63,000 government jobs to the youth of Punjab. This historic recruitment drive has helped curb the state’s brain drain and has created a positive environment for the younger generation.”
Responding to opposition concerns on state debt, he continued, “Eighty five percent of the state’s current funds are being utilised to service the massive debt inherited from previous governments. Despite this burden, our government has successfully reduced the debt to GDP ratio from 48 percent to 45 percent and cleared inherited liabilities worth ₹21,860 crore. At the same time, the state has strictly adhered to the limits set under the Fiscal Responsibility and Budget Management (FRBM) Act and has not resorted to excessive borrowing. Short term cash management has been handled efficiently through the Sinking Fund and Guarantee Redemption mechanisms, enabling the state to secure lower interest rates.”
Speaking about welfare measures, the Finance Minister added, “The government has successfully rolled out the ₹1,500 financial assistance for women, fulfilling all five major guarantees promised to the people of Punjab. Not a single rupee of sugarcane dues owed by the state government is pending. The outstanding ₹27 crore belongs to a private mill in Phagwara and its properties have already been attached to ensure farmers receive their rightful payments.”
Responding to a suggestion from MLA Rana Inder Pratap regarding a One Time Settlement for farmers, Harpal Singh Cheema said, “Chief Minister Bhagwant Mann is actively pursuing the amalgamation of loss making banks with the Reserve Bank of India to facilitate such a settlement.”
Replying to questions raised by MLA Barindermeet Singh Pahra regarding MLA Local Area Development funds, he stated, “The MLA Local Area Development funds have been doubled from ₹5 crore to ₹10 crore per MLA, enabling elected representatives to bring forward comprehensive development proposals. There are certain guidelines for utilising these funds and MLAs should ensure that these guidelines are followed.”
Addressing infrastructure demands raised by MLA Nachhattar Pal and other newly elected members, the Punjab Minister added, “The budget has prioritised critical infrastructure projects. An allocation of ₹130 crore has been made for the construction of new bridges and roads across the state. The Home Affairs budget has been increased by seven percent to ₹11,577 crore. Capital outlay for constructing new police stations and police lines has also increased significantly from ₹297 crore to ₹480 crore.”
Addressing concerns raised by MLA Rana Inder Pratap regarding funding for the health insurance scheme, Harpal Singh Cheema said, “₹2,000 crore has been earmarked for the Health Insurance Scheme and if required this allocation can be increased later in the year.”
Welcoming suggestions from MLA Sukhwinder Sukhi regarding salaries of personal assistants and drivers, he added, “The House committee should forward its recommendations for the review of the Chief Minister.”
Speaking about employee welfare and pensions, the Punjab Finance Minister continued, “The government has cleared 100 percent of pending Dearness Allowance arrears for pensioners above 75 and 85 years of age for the period from January 2016 to June 2021. Funds have also been allocated to release the remaining arrears for current employees and pensioners starting from April 1.”
On the Old Pension Scheme, he said, “An expert committee led by the Chief Secretary is carefully studying the fiscal impact of the Old Pension Scheme to take a secure long term decision. The committee is also examining the financial challenges faced by states such as Himachal Pradesh, Rajasthan and Chhattisgarh after implementing similar policies. ₹100 crore has been allocated to celebrate the 650th birth anniversary of Guru Ravidas at Khuralgarh. Ten acres of land have also been purchased near Dera Ballan for establishing the Sri Guru Ravidas Ji Bani Adhyayan Center and its foundation will soon be laid by Chief Minister Bhagwant Mann.”
Speaking about future initiatives, the Punjab Minister added, “Funds have also been designated for establishing a new World University to commemorate the 350th Shaheedi Diwas of Guru Tegh Bahadur and work on the project will begin on a war footing.”
Concluding the discussion on the budget, Finance Minister Harpal Singh Cheema reiterated the government’s commitment to development and said, “Chief Minister Bhagwant Mann has promised to deliver water to the last field and the government remains fully committed to taking Punjab to new heights of prosperity ahead of 2027.”
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