Punjab Finance Minister Harpal Cheema began presenting the ruling Aam Aadmi Party’s fifth and final budget on Sunday, ahead of the upcoming Assembly elections. This marks the first time the state government has presented its annual budget on a holiday (Sunday).
Among the major anticipated highlights is the likely announcement of a Rs 1,000 monthly honorarium for women—a key promise made by the AAP during the previous assembly elections campaign. Observers view the move as a strategic effort to consolidate support among women voters, who constitute nearly 48 per cent of the state’s electorate.
Cheema described the budget as “people-friendly” and one that will fulfil all the guarantees and aspirations of the people of Punjab. The total size of the fiscal budget for 2026-27 has been pegged at Rs 2,60,437 crore.
A day earlier, on Saturday, the Punjab government approved the Industrial and Business Development Policy, 2026—one of the major pre-budget announcements expected to attract massive investments.
The policy is projected to bring in Rs 75,000 crore worth of investment during 2026. The policy was cleared by Chief Minister Bhagwant Mann after extensive consultations with various stakeholders.
Punjab's Industry and Commerce Minister Sanjeev Arora stated on Saturday, "We had received 601 recommendations from industry leaders across different sectors for shaping the policy, and 77 per cent of those suggestions have been incorporated.”
A key feature of both this year’s budget and the new industrial policy is the enhancement of the seed grant for startups, which has been increased from Rs 3 lakh to Rs 5 lakh to further boost the state’s startup ecosystem.
The policy also extends support to emerging sectors such as health tourism, film tourism, and higher education, all of which are expected to receive a significant boost in the 2026-27 budget.
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