Punjab Finance Minister Harpal Singh Cheema on Wednesday presented the state Budget in the assembly. Ahead of the presentation of the state Budget 2025-26, he also signed the copies of it. This year’s budget will be the Aam Aadmi Party (AAP) government’s third budget after coming to power in 2022.

This year, Cheema presents the Budget of Rs 2,36,080 crore in the state assembly. “I propose a total budget expenditure of Rs 2,36,080 crore for the financial year 2025-26,” said the Minister. The state government estimated the effective revenue deficit at 2.51% and fiscal deficit at 3.84%.

The Minister said that the Punjab’s economy is on a robust growth trajectory, registering an impressive 9% growth in the current year. He said that the state’s Gross State Domestic Product (GSDP) has reached Rs 8,09,538 crore at current prices. He estimated GSDP at current prices to grow by 10% in FY 2025-26, reaching Rs 8,91,301 crore.

For 2025-26, Cheema proposed “Badalta Punjab” roadmap to be implemented in various sectors in the coming financial year 2025-26.

Punjab Budget: Key Highlights

First-Ever Drug Census: The Budget proposes to conduct a “Drug Census”. This census will cover every household in Punjab and collect data to understand the prevalence of drugs, use of de-addiction centres, etc., besides the socio-economic status of the people of Punjab. The government will use this data to formulate an effective and scientific strategy to eliminate the problem of drugs in the next 1–2 years. The government proposed a budget of Rs 150 crore on this initiative in the financial year 2025-26.

‘Khed Da Punjab Badalda Punjab’ Initiative: The state government allocated Rs 979 crore for ‘Khed da Punjab Badalda Punjab’ initiative. The minister said that the government will establish 3,000 indoor gyms.

Emergency Response Vehicles: The government allocated Rs 125 crore to procure Emergency Response Vehicles, which includes 758 four wheelers and 916 two-wheelers.

Health And Family Welfare: The government allocates Rs 268 crore for Health and Family Welfare. The Minister said that, so far, 45 lakh families get government health insurance. Under this Budget, all 65 lakh families to get free health insurance. The insurance cover for the families has been increased from Rs 5 lakh to Rs 10 lakh.

Sehat Card: The government proposed to issue Sehat card to all, which will allow availing cashless treatment of up to Rs 10 lakh in government and private hospitals of state. The government allocated Rs 778 crore for this initiative.

More Details

‘Badalde Pind, Badalda Punjab’ Scheme: The government allocated Rs 3500 crore for this scheme. The scheme aims to improve infrastructure in all 12,581 villages of the state. These include rejuvenation of village ponds, setting up sewerage treatment plant, restoring the irrigation channels to provide canal water, construction of playgrounds in villages and installing streetlights.

Rangla Punjab Vikas Scheme: The government has allocated Rs 585 crore for ‘Rangla Punjab Vikas Scheme’. The scheme will be started in each district for carrying development works. The government will spend Rs 5 crore in each of 117 constituencies.

Urban Development: The Minister announced the budget of Rs 5,983 crore for urban development sector. The government will focus on cleanliness, water supply, sewage, roads and street lights in 166 towns and cities. Moreover, Rs 140 crore to be spent for creating “model streets” in major cities.

Mukhya Mantri Street Light Yojana: The government has allocated Rs 115 crore under ‘Mukhya Mantri Street Light Yojana’ for installing street lights in villages and towns.

Free Electricity: The government allocated Rs 7,614 crore for power subsidy to provide 300 units of free electricity each month to domestic consumers. The government has also allocated Rs 3,426 crore is power subsidy for industry in 2025-26.

Loan Waiver Scheme For Scheduled Castes: The government introduced this scheme. This will benefit 4,640 individuals who defaulted on repaying loans taken from the Punjab Scheduled Castes Land Development and Finance Corporation up to March 31, 2020.

Other Major Announcements In Punjab Budget

Social Security Pensions: The government has allocated Rs 6,176 crore for social security pensions to elderly, widows, destitute women, children and differently abled.

Free Bus Travel To Women: The government has allocated Rs 450 crore for free bus travel to women.

Scheduled Castes Sub Plan: The government has allocated Rs 13,987 crore under the Scheduled Castes Sub Plan.

Agriculture: The Minister announced the budget of Rs 14,524 crore for Agriculture.

Education Sector: The state government allocated Rs 17,975 crore for the education sector.

Home Affairs And Justice: The government allocated Rs 11,560 crore for Home Affairs and Justice. Moreover, the government will establish new court complexes in Dera Bassi, Khanna and Patran.

Total Power Subsidy: The government has estimated a total power subsidy of Rs 25,564 crore in the Budget 2025-26. Last year, the total power subsidy was Rs 21,910 crore.

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