Chandigarh: Punjab Finance Minister Harpal Singh Cheema presented the state Budget for 2025-26 in the assembly on Wednesday, the third budget of the Aam Aadmi Party (AAP) government. The Finance Minister obtained copies of the Budget document prior to tabling signed.
Unveiling a total outlay of ₹2,36,080 crore for the financial year 2025-26, Cheema elaborated that Punjab is on a consistent growth path and the state’s economy has achieved a growth of 9% this year. Gross State Domestic Product (GSDP) of the state stood at ₹8,09,538 crore and is projected to register a 10% growth leap in the next financial year, reaching ₹8,91,301 crore. The revenue deficit is projected to be 2.51% and the fiscal deficit at 3.84%.
Budget Highlights
Drug Census Initiative
The Centre has initiated a first-ever “Drug Census” to gather household-level data on drug use, de-addiction centers, and socio-economic status. ₹150 crore is the budget allocated for this exercise with a view to formulating an effective anti-drug policy.
‘Khed Da Punjab, Badalda Punjab’ Initiative
With a budget of ₹979 crore, the government plans to launch 3,000 indoor gyms to enhance sports and fitness.
Healthcare and Emergency Services
₹125 crore allocated for the purchase of 758 four-wheelers and 916 two-wheelers for emergency duty.
₹268 crore for health and family welfare, such as the expansion of free health insurance to all 65 lakh families, increasing coverage from ₹5 lakh to ₹10 lakh.
₹778 crore for the Sehat Card, ensuring cashless treatment of up to ₹10 lakh in government and private hospitals.
Rural and Urban Development
‘Badalde Pind, Badalda Punjab’ Scheme: ₹3,500 crore for the construction of infrastructure in 12,581 villages, including the revival of ponds, sewage treatment, irrigation channels, playgrounds, and streetlights.
‘Rangla Punjab Vikas Scheme’: ₹585 crore for development schemes across all districts, out of which ₹5 crore per assembly constituency has to be utilized.
Urban Development: ₹5,983 crore for urban infrastructure in 166 cities and towns, of which ₹140 crore is for model streets and ₹115 crore under the Mukhya Mantri Street Light Yojana.
Power Subsidy and Agriculture
₹7,614 crore for giving 300 units of free electricity every month to household consumers.
₹3,426 crore industry subsidy, with total power subsidy for 2025-26 put at ₹25,564 crore, higher than ₹21,910 crore a year ago.
₹14,524 crore for agriculture.
Social Welfare and Transport
₹6,176 crore for social security pensions for the aged, widows, destitute women, children, and differently abled persons.
₹450 crore for free bus travel for women.
₹13,987 crore under the Scheduled Castes Sub Plan.
Education and Judiciary
₹17,975 crore for the education sector.
₹11,560 crore for Home Affairs and Justice, including new court complexes to be established in Dera Bassi, Khanna, and Patran.
This Budget substantiates the government’s vision on welfare, infrastructure, and economic growth along with fiscal responsibility.