Punjab’s “Badlda Punjab” Budget: A New Era of Growth and Transformation
Chandigarh, March 27— The Aam Aadmi Party (AAP)-led Punjab government has unveiled its transformative budget for 2025-26, aptly named the “Badlda Punjab” budget, which highlights the state’s commitment to reform, revenue growth, and social welfare. Addressing the Punjab Vidhan Sabha, Finance Minister Advocate Harpal Singh Cheema shared insights into the government’s progress and future plans, reflecting the vision of Chief Minister Bhagwant Singh Mann to usher in a new era for Punjab.
Financial Achievements Under AAP’s Leadership
In a speech that contrasted the AAP government’s financial performance with that of previous Congress and SAD-BJP administrations, Cheema proudly highlighted the surge in GST revenue and efforts to eliminate corruption and mafias. Under AAP’s leadership, GST revenue has soared to Rs 64,253 crore over the last three years, a significant increase compared to the Rs 21,286 crore collected by the Congress-led government in 2017.
Cheema attributed the rise in revenue to the state’s systematic reforms, including tackling illegal activities like the land, transport, and liquor mafias, which previously siphoned off considerable state income. He criticized past governments for their failure to improve tax collection, which left Punjab financially strained. The Finance Minister also emphasized that the state’s financial health has been greatly strengthened through these efforts.
Fulfillment of AAP’s Five Guarantees
A key part of the Punjab government’s agenda has been fulfilling its promises made to the people. Cheema confirmed that four out of the five guarantees pledged by AAP have already been fulfilled, with the fifth—providing Rs 1,000 per month to women—in the process of being implemented soon.
The guarantees, which are central to AAP’s social welfare policies, have played a crucial role in garnering support among the people of Punjab. The government’s focus on social security and empowerment, particularly for women, signals a commitment to creating a more inclusive society.
Major Fiscal Reforms and Investments
One of the key highlights of the 2025-26 budget is the significant increase in excise duty collections, which have reached Rs 28,000 crore over the last three years, surpassing the figures collected by previous governments. The Finance Minister also noted that the Aam Aadmi Party (AAP) had managed to boost revenue despite the challenges posed by the pandemic and previous mismanagement.
In addition to improving revenue collection, the AAP government has taken a proactive approach to industry development. The budget allocates a record Rs 250 crore to incentivize various industries—the highest allocation in Punjab’s history. This is in stark contrast to the Congress government, which spent only Rs 53 crore over its entire five-year term. The allocation for industries and commerce stands at Rs 3,426 crore, underscoring the government’s focus on creating a favorable business environment.
Cheema also revealed a Rs 8,000 crore investment in the state’s sinking fund to manage short-term loans, providing financial stability. The budget earmarks significant funds for healthcare, education, and sports, with Rs 5,598 crore allocated to health and family welfare and Rs 17,975 crore for education.
Tackling the Challenges of Debt and Tax Evasion
While the state has made impressive strides in improving its financial situation, Cheema acknowledged the challenges posed by the state’s legacy debt, particularly Rs 20,000 crore accumulated from GST compensation loans. He stressed that had previous administrations put in more effort to enhance GST revenue earlier, Punjab might not have needed to take on these loans.
Cheema also addressed the issue of tax evasion, noting that the previous government had not created a tax intelligence unit or implemented necessary reforms to reduce tax fraud. The AAP government, however, introduced the Bill Liyao Inam Pao reward scheme, which has significantly improved compliance and revenue collection.
Empowering Marginalized Communities
A central theme of the Badlda Punjab budget is its commitment to uplifting marginalized communities. The budget allocates Rs 13,987 crore for the Scheduled Caste Sub-Plan (SCSP), accounting for 34% of the state’s total development budget. Additionally, a loan waiver scheme for individuals who defaulted on loans from the Punjab Scheduled Castes Land Development and Finance Corporation (PSCFC) will benefit 4,650 individuals, helping them rebuild their lives and businesses.
In terms of social welfare, the AAP government continues to prioritize programs that support the most vulnerable sections of society, including women, Scheduled Castes, and economically disadvantaged groups.
Enhancing Infrastructure and Capital Expenditure
The Punjab government’s focus on infrastructure development is evident in its capital expenditure allocations. Over the past three years, the AAP-led government has spent Rs 19,810 crore on infrastructure projects, including schools and hospitals. This is a notable increase compared to the Rs 14,641 crore spent under the SAD-BJP government and Rs 19,356 crore spent during the Congress administration.
A significant portion of this investment is being channeled into solar energy subsidies, service centers, and infrastructure development to tackle Punjab’s drug crisis. With Rs 110 crore allocated for anti-drone technology and Rs 150 crore for drug testing, the government is taking proactive measures to address this pressing issue.
Conclusion: A Vision for a Transformed Punjab
Finance Minister Harpal Singh Cheema closed his address by reiterating the AAP-led government’s commitment to a transformed Punjab. Through sound fiscal management, enhanced revenue collection, and targeted welfare programs, the “Badlda Punjab” budget represents a bold vision for the state’s future. The budget not only promises substantial growth but also aims to make Punjab a leader in social and economic transformation.
With a firm focus on empowering citizens, improving infrastructure, and expanding the state’s fiscal health, Punjab is well on its way to achieving sustainable growth and prosperity under the leadership of Chief Minister Bhagwant Singh Mann.