Punjab Finance Minister Harpal Singh Cheema presented a Rs 2.36 lakh crore budget for the financial year 2025-26, with a strong focus on combating the state’s drug problem and boosting healthcare. Notably, no fresh taxes were introduced, though the budget remained silent on the Aam Aadmi Party‘s (AAP) poll promise of providing Rs 1,000 monthly to women.
Here are the key allocations under various heads:
Total Budget Expenditure: Rs 2,36,080 crore
Health Sector: Rs 5,598 crore (including Rs 778 crore for universal health insurance and Rs 268 crore for Aam Aadmi Clinics)
Education Sector: Rs 17,975 crore (with Rs 1,240 crore for Samagra Shiksha Abhiyan and Rs 466 crore for PM Poshan Scheme)
Rural Development: Rs 3,500 crore under the “Badalde Pind, Badalda Punjab” initiative
Rangla Punjab Vikas Scheme: Rs 585 crore (Rs 5 crore per constituency)
Urban Development: Rs 5,983 crore (including Rs 300 crore for Punjab Municipal Services Improvement Project and Rs 225 crore for Punjab Municipal Development Fund)
Power Sector: Rs 7,614 crore (with Rs 40 crore for free power to domestic consumers and Rs 9,992 crore for free power to farmers)
Industries & Commerce: Rs 3,426 crore (including Rs 250 crore for industrial incentives and Rs 80 crore for Unity Mall in Amritsar)
Agriculture & Farmers’ Welfare: Rs 14,524 crore (with Rs 115 crore for crop diversification and Rs 500 crore for crop residue management)
Animal Husbandry, Dairy & Fisheries: Rs 704 crore
Cooperation: Rs 250 crore (including payments to sugarcane farmers)
Forestry & Wildlife: Rs 281 crore
Technical Education: Rs 579 crore (Rs 33 crore for new ITIs)
Medical Education & Research: Rs 1,336 crore (including a new medical college at Barnala Kalan)
Employment Generation & Training: Rs 230 crore
Tourism & Cultural Affairs: Rs 204 crore (with Rs 10 crore for Nangal tourism hub)
Home Affairs, Justice & Jails: Rs 11,560 crore (Rs 233 crore for police infrastructure and Rs 100 crore for jail renovation)
Roads & Bridges: Rs 1,800 crore (Rs 855 crore for road network and Rs 600 crore for PMGSY-III rural roads)
Water Supply & Sanitation: Rs 1,614 crore
Water Resources: Rs 3,246 crore (with Rs 723 crore for new projects and Rs 1,343 crore for ongoing projects)
Mining: Expansion of public mining sites with technology-driven monitoring
Revenue Augmentation: Projected revenue of Rs 1,11,740 crore (Rs 63,250 crore from own tax revenue)
Capital Expenditure: Rs 10,302 crore
‘Drug census’ in Punjab
Highlighting the drug problem as the biggest threat to Punjab’s prosperity, Cheema announced the first-ever ‘drug census’ to be conducted next fiscal year. This comprehensive survey will cover every household in Punjab to collect data on drug prevalence, de-addiction center usage, and the socio-economic status of the population. The findings will help devise an effective, data-driven strategy to eradicate the drug menace.
‘Sehat Card’ for cashless treatment
With a record allocation of Rs 5,598 crore, the healthcare sector saw a 10% increase over the previous year. Cheema revealed plans to extend the state health insurance scheme universally to cover all 65 lakh families in Punjab, offering up to Rs 10 lakh annual coverage. This includes an additional top-up cover of Rs 5 lakh for those enrolled in central government schemes. Beneficiaries under the Mukh Mantri Sarbat Sehat Bima Yojana will receive a ‘Sehat Card’ for cashless treatment in government and private hospitals.
Border security and agriculture
In an effort to bolster border security, the Punjab government will deploy 5,000 home guards alongside the BSF, creating a second line of defence. The budget also incentivises crop diversification with a new scheme promoting Kharif maize in Bathinda, Kapurthala, and Gurdaspur. Additionally, Rs 9,992 crore was allocated for power subsidies in the agriculture sector, while a state-of-the-art shrimp processing unit is proposed for waterlogged areas.
Governance and local development
The cost of doorstep delivery of government services will be reduced from Rs 120 to Rs 50, aiming to make services more accessible. The ‘Rangla Punjab Vikas Scheme’ was introduced to fund local developmental needs, managed by Deputy Commissioners based on recommendations from MLAs and community organizations.
‘Badalda Punjab’
Cheema emphasised the government’s commitment to transforming Punjab into a progressive and inclusive state. He attributed the state’s recent progress to Chief Minister Bhagwant Mann’s leadership. Addressing past administrations, Cheema accused rival parties of leaving behind a legacy of drug abuse. The government’s resolve is to build a ‘Rangla Punjab’ — a vibrant, opportunity-rich state.
According to the Directorate of Economics and Statistics, Punjab’s economy is on a growth trajectory with a 9% growth rate this year, underscoring the state’s economic resilience.
(With agency inputs)
