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Punjab Finance Minister Harpal Cheema on Wednesday presented the state budget for the financial year 2025-26, emphasising key sectors such as combating drug addiction, enhancing public education, improving health infrastructure, and promoting sports. 

With a total allocation of Rs 2.36 lakh crore, the budget has been described as a "futuristic" financial plan under the "Badalda Punjab Roadmap for 2025-26."

This marks the fourth budget of the Aam Aadmi Party (AAP) government, which has made tackling the drug menace a priority through its 'Yudh Nasheyan Virudh' (War Against Drugs) campaign. 

A significant initiative under this programme is the launch of Punjab’s first-ever "drug census," which will survey every household to gather data on drug use, the role of de-addiction centers, and the socio-economic impact on affected families. This data will help the government formulate an effective strategy to eradicate drug addiction.

The state’s fiscal consolidation efforts were also highlighted, with projections that the revenue deficit and fiscal deficit will be reduced to 2.51% and 3.84%, respectively, by the end of the financial year 2025-26. Notably, no new taxes have been imposed in the budget.

Key revenue and expenditure allocations include an estimated Rs 27,650 crore from GST, Rs 7,000 crore from stamp duty and registration deeds, and Rs 10,302 crore for capital asset creation. 

Revenue receipts for 2025-26 are projected at Rs 1,11,740 crore, comprising Rs 63,250 crore from the state’s own tax revenue, Rs 25,703 crore as Punjab’s share from central taxes, and Rs 10,576 crore in grants from the Centre.

 

 

In the Home Affairs and Justice sector, Rs 11,560 crore has been allocated, with new court complexes planned for Dera Bassi, Khanna, and Patran. The tourism sector will see an upgrade of Nangal as a tourism hub at a cost of Rs 10 crore, while Rs 54 crore has been allocated for the development of a heritage street and an auditorium in Nawanshahr.

A major investment in medical education includes Rs 1,336 crore for a medical college in Nawanshahr. Higher education institutions, including Punjab Agricultural University (PAU), Panjab University (PU), Guru Angad Dev Veterinary and Animal Sciences University (GADVASU), Punjabi University, and Guru Nanak Dev University (GNDU), will receive a combined grant-in-aid of Rs 1,650 crore.

The education sector has been allocated Rs 17,975 crore, accounting for 12% of the total budget. Schools will see the installation of solar panels as part of a green initiative. Additionally, a new project will focus on reclaiming waterlogged land in Fazilka, while a shrimp processing unit will be established in the state.

A significant allocation of Rs 25,564 crore has been made for power subsidies, with Rs 14,524 crore earmarked for agricultural consumers, Rs 7,614 crore for domestic consumers, and Rs 3,426 crore for industrial consumers. 

This marks an increase of Rs 3,654 crore from the previous year’s subsidy of Rs 21,910 crore.

To support sustainable agriculture, Rs 500 crore has been allocated for Crop Residue Management, with funds dedicated to purchasing CRM machines. The agriculture sector overall will receive Rs 14,524 crore, of which Rs 9,992 crore will be used to provide free power to farmers.

Under the Scheduled Castes Sub Plan, Rs 13,987 crore has been allocated, representing 34% of the state’s total development budget. 

Additionally, Rs 450 crore has been earmarked to fund free bus travel for women, and Rs 6,176 crore has been designated for social security pensions benefiting the elderly, widows, destitute women, children, and differently-abled individuals.

A new loan waiver scheme has been introduced for Scheduled Caste individuals who defaulted on loans from the Punjab Scheduled Castes Land Development and Finance Corporation before March 31, 2020, benefiting 4,640 people. 

Furthermore, the fee for doorstep delivery of government services has been reduced from Rs 120 to Rs 50, with the state government absorbing the remaining Rs 70.

The industry sector’s share in Punjab’s economy has now reached 27%. To boost further growth, the government has allocated Rs 3,426 crore in power subsidies for the industrial sector in 2025-26, along with Rs 250 crore in additional financial incentives. 

Technology Extension Centres will be established in Amritsar, Hoshiarpur, Jalandhar, Moga, Patiala, and Mohali to support industry development. Additionally, a Unity Mall will be built in Amritsar, where artisans from across India will showcase their products, with Rs 80 crore allocated for the project.

The budget also includes Rs 7,614 crore for providing 300 units of free electricity per month to domestic consumers. In an unusual turn during the budget presentation, MLA Budh Ram interrupted Finance Minister Cheema’s speech to praise the proposals.

In urban development, Rs 5,983 crore has been allocated for improving cleanliness, water supply, sewage systems, roads, and streetlights in 166 towns and cities. 

Rs 140 crore will be spent on developing “model streets” in major cities, while Rs 585 crore has been set aside for the 'Rangla Punjab Vikas Scheme,' with Rs 5 crore allocated for development work in each of the state’s 117 constituencies.

Another Rs 3,500 crore has been earmarked for the 'Badalde Pind, Badalda Punjab' scheme, aimed at upgrading infrastructure in all 12,581 villages. This includes rejuvenating village ponds, setting up sewage treatment plants, restoring irrigation channels, constructing playgrounds, and installing streetlights. Rs 2,873 crore has been allocated for repairing broken link roads in villages.

In the healthcare sector, the government has launched a 'Sehat Card' initiative, which will provide free health insurance coverage of up to Rs 10 lakh per family in both government and private hospitals. 

Rs 778 crore has been allocated for this program. Health and Family Welfare will receive Rs 268 crore, and the number of families benefiting from government health insurance will increase from 45 lakh to 65 lakh. The insurance coverage amount has also been raised from Rs 5 lakh to Rs 10 lakh per family.

To improve emergency response services, the government will procure 758 four-wheelers and 916 two-wheelers for emergency vehicles, with Rs 125 crore allocated for this initiative.

Sports development is another major focus of the budget, with Rs 979 crore allocated under the 'Khed da Punjab Badalda Punjab' initiative. 

Plans include setting up 3,000 indoor gyms and ensuring every village has a playground and indoor sports facilities. On a pilot basis, 87 playgrounds have already been developed in Tarn Taran. 

The government aims to use sports engagement as a means to keep youth away from drugs.

The budget reinforces the Punjab government’s commitment to economic growth, social welfare, and fiscal responsibility, with a strong focus on tackling drug addiction, improving infrastructure, and enhancing public services. 

The financial roadmap aims to balance fiscal consolidation while prioritising investments in critical sectors to drive the state's development.

 

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