Punjab reduces debt to GDP ratio & clears ₹21,860 crore inherited liabilities from previous govts despite heavy debt burden: Harpal Singh Cheema
CHANDIGARH, 11 March 2026: The Punjab Assembly on Wednesday passed the Punjab Budget for the Financial Year 2026–27. It was presented by Finance Minister Harpal Singh Cheema after a comprehensive three day debate. Concluding the discussion in the House, the Finance Minister presented a detailed summary of the Aam Aadmi Party (AAP) government’s work over the past four years and responded to the queries and suggestions raised by various MLAs during the debate.
Punjab Finance Minister Harpal Singh Cheema stated, “Guided by AAP National Convenor Arvind Kejriwal’s anti corruption principles and Chief Minister Bhagwant Mann’s vision, the Punjab government’s zero tolerance policy toward theft has led to record breaking revenue growth. Excise revenue increased from ₹20,000 crore to ₹53,000 crore, while GST collections doubled from ₹61,000 crore to ₹1,21,000 crore. Additionally, stamp registration revenue rose significantly from ₹12,000 crore to ₹30,000 crore. This financial turnaround has been made possible through strict vigilance and honest governance.”
Punjab Budget : 63,000 government jobs to the youth of Punjab
Referring to employment generation and the AAP government’s guarantees, Harpal Singh Cheema said, “When our government took its first Cabinet decision in 2022, we had promised to provide 30,000 government jobs. Today we have far exceeded that promise by delivering more than 63,000 government jobs to the youth of Punjab. This historic recruitment drive has helped curb the state’s brain drain and has created a positive environment for the younger generation.”
Responding to opposition concerns on state debt, he said, “We are using 85% of the state’s current funds to service the massive debt that previous governments left behind.” Despite this burden, our government has successfully reduced the debt to GDP ratio from 48 percent to 45 percent and cleared inherited liabilities worth ₹21,860 crore. At the same time, the state has strictly adhered to the limits set under the Fiscal Responsibility and Budget Management (FRBM) Act and has not resorted to excessive borrowing. Short term cash management has been efficient. It has been achieved through the Sinking Fund and Guarantee Redemption mechanisms. This strategy enables the state to secure lower interest rates.”
outstanding ₹27 crore belongs to a private mill in Phagwara
Speaking about welfare measures, the Finance Minister added, “The government has successfully rolled out the ₹1,500 financial assistance for women. This rollout fulfills all five major guarantees promised to the people of Punjab. Not a single rupee of sugarcane dues owed by the state government is pending. The outstanding ₹27 crore belongs to a private mill in Phagwara. Its properties have already been attached. This ensures farmers receive their rightful payments.”
Harpal Singh Cheema responded to a suggestion from MLA Rana Inder Pratap about a One Time Settlement for farmers. He said, “Chief Minister Bhagwant Mann is taking action. He is actively pursuing the amalgamation of loss making banks with the Reserve Bank of India. This is to facilitate such a settlement.”
He replied to questions raised by MLA Barindermeet Singh Pahra about MLA Local Area Development funds.He announced that the MLA Local Area Development funds have doubled from ₹5 crore to ₹10 crore per MLA.This increase enables elected representatives to bring forward comprehensive development proposals. There are certain guidelines for utilising these funds and MLAs should ensure that these guidelines are followed.”
The Punjab Minister addressed infrastructure demands raised by MLA Nachhattar Pal. He also considered requests from other newly elected members. The Minister added, “The budget has prioritised critical infrastructure projects.” The government has allocated ₹130 crore to construct new bridges and roads across the state. It has also increased the Home Affairs budget by seven percent to ₹11,577 crore. Capital outlay for constructing new police stations and police lines has also increased significantly from ₹297 crore to ₹480 crore.”
earmarked ₹2,000 crore for the Health Insurance Scheme
Harpal Singh Cheema addressed concerns raised by MLA Rana Inder Pratap about funding for the health insurance scheme. He said, “We have earmarked ₹2,000 crore for the Health Insurance Scheme. If needed, we will increase this allocation later in the year.”
He welcomed suggestions from MLA Sukhwinder Sukhi regarding salaries of personal assistants and drivers. He added, “The House committee should forward its recommendations for the review of the Chief Minister.”
The Punjab Finance Minister spoke about employee welfare and pensions. He continued, “The government has cleared 100 percent of pending Dearness Allowance arrears for pensioners above 75. It has cleared arrears for pensioners above 85 years of age. This covers the period from January 2016 to June 2021.“The government has also allocated funds to release the remaining arrears for current employees and pensioners starting from April 1.”
Cheema concluded the discussion on the budget
On the Old Pension Scheme, he said, “An expert committee led by the Chief Secretary is carefully studying the fiscal impact of the Old Pension Scheme. They aim to take a secure long term decision. The committee is also examining the financial challenges faced by states such as Himachal Pradesh.Officials are reviewing similar policies implemented in Rajasthan and Chhattisgarh. The government has allocated ₹100 crore to celebrate the 650th birth anniversary of Guru Ravidas at Khuralgarh Sahib. Authorities have purchased ten acres of land near Dera Ballan to establish the Sri Guru Ravidas Ji Bani Adhyayan Center. Bhagwant Mann will soon lay the foundation stone of this center.
The Punjab Minister added while speaking about future initiatives, “We have also designated funds to establish a new World University.”This university will commemorate the 350th Shaheedi Diwas of Guru Tegh Bahadur. Work on the project will begin on a war footing.”
Finance Minister Harpal Singh Cheema concluded the discussion on the budget. He reiterated the government’s commitment to development. He said, “Chief Minister Bhagwant Mann has promised to deliver water to the last field. The government remains fully committed to taking Punjab to new heights of prosperity ahead of 2027.”
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