CHANDIGARH: Punjab Finance Minister Harpal Cheema today presented the Rs 2.36 lakh crore state’s budget for the financial year 2025-26 without imposing any new taxes.
However, it is the fourth budget of the AAP government, where the pre-election promise of a scheme providing Rs 1000 per month for women was not implemented.
The budget focused on tackling the drug problem with the first-ever "drug census’’ to be carried out across the state and recruiting 5000 home guards who will be deployed along the Border Security Force (BSF) to established a second line of defence at border, promoting sports, enhancing health infrastructure and improving public education.
The total revenue receipts have been projected to be Rs 1,11,740 crore, of these the own tax revenue accounts for Rs 63,250 crore, and the share of central taxes has been pegged at Rs 25,703 crore and grant-in-aid from the Centre at Rs 10,576 crore.
The goods and services tax (GST) target for the next financial year is Rs 27,650 crore. By the end of the next fiscal, the state’s outstanding debt will be Rs 3.96 lakh crore.
The state will raise a loan of Rs 49,900 crore in 2025-26. The budget is being described a “futuristic” budget and setting a clear “Badalda Punjab (Changing Punjab) Roadmap for 2025-26.”
Finance Minister Cheema also announced a 'Rangla Punjab Vikas Scheme' under which funds will be spent on the "most important local everyday developmental needs" of the people of a district.
"The fund will be administered by Deputy Commissioners and will be spent based on the recommendation of MLAs, community organisations, citizen groups and public-spirited people of that district," he said.
While the effective revenue deficit and fiscal deficit are expected to be 2.51 per cent and 3.84 per cent, respectively. Finance Minister Cheema mentioned that these parameters were better than before, indicating that the state has taken steps toward fiscal consolidation.
Talking about the anti-drug campaign `Yudh Nasheyan Virudh’ to check drug scourge, Cheema while giving his budget speech, said the state government has decided to carry out the first-ever drug census in Punjab next year and thus earmarked Rs 150 crore for this purpose.
"It will cover every household of the state and will collect data to understand the prevalence of drugs, usage of de-addiction centres and also collect data on the socio-economic conditions of affected families of the people. This data will be used to chalk out an effective and scientific strategy to eradicate the problem of drugs within the next one to two years,” he said.
He said that for the first time the state government will establish a second line of defence at the border by deploying 5,000 home guards alongside BSF. "These home guards will be selected from the most determined youth of the state who will act as the eagle eyes protecting the future of Punjab. The government will also deploy the most advanced and effective anti-drone systems along the border in the coming year, and for that, Rs 110 crore has been allocated,’’ he said.
Cheema took a dig at rival parties who ruled Punjab in the past, and alleged they have destroyed and looted the state. "The only legacy these parties left in Punjab was that of 'Udta Punjab'.’’
An entire generation of youth is being eaten hollow from within due to drugs, he lamented, adding that the AAP government's resolve is to build a "Rangla Punjab", a Punjab that is inclusive, progressive, and brimming with opportunity for all, said Cheema.
Moreover, a budgetary allocation of Rs 5,598 crore has been provided for the health sector, an increase of ten per cent over the previous year. Cheema said, for the first time in the history of the state, the AAP government has decided to extend the state health insurance scheme in the coming fiscal year to make it universal and cover all the 65 lakh families in the state.
There will be no bar or discrimination-- rural or urban, rich or poor --everyone can participate in this scheme, he said. At present, 45 lakh families are enrolled in government health insurance schemes, of which 16 lakh families are covered under the Centre’s Ayushman Bharat Yojana and the remaining 29 lakh families are covered under the state government’s Mukh Mantri Sarbat Sehat Bima Yojana.
The insurance coverage for the entire family is only Rs 5 lakh per annum in these schemes. "The government has decided to extend the insurance cover for all families across the state to Rs 10 lakh per annum, which will include those enrolled in the central government scheme, also as they will get an additional top-up cover of Rs 5 lakh from the state government. Meanwhile, all families who are covered under the Mukh Mantri Sarbat Sehat Bima Yojana will get a Sehat Card next year through which they can avail cashless treatment of up to Rs 10 lakh in government and private hospitals across the state,’’ he added.
Cheema further said that to ensure that the state police is well-equipped to respond immediately, Rs 125 crore has been allocated to buy new vehicles for the fleet of emergency response vehicles (ERVs), which will thus be strengthened and will be able to respond to calls made on 112.
"Thus, the government has decided to procure 758 four-wheelers and 916 two-wheelers, which will be deployed as ERVs and will increase the fleet size by six times. Besides this will reduce the average response time to emergency calls to eight minutes, which will be the lowest in the country as at present the average response time to distress calls goes up to 30 minutes as there are only 258 dedicated vehicles in this fleet,’’ he said.
He also spoke about the Rs 53 crore allocation towards building the new Dial 112 headquarters. For the agriculture and allied sectors, Rs 14,524 crore has been allocated in the next financial year, which is 5 per cent higher than last year. While Rs 9,992 crore have been allocated as power subsidy for 14.5 lakh agriculture tubewells and Rs 500 crore earmarked to support farmers, cooperatives, and gram panchayats for crop-residue management, to check stubble burning, specifically during paddy harvest.
To incentivise crop diversification, a new scheme covering Bathinda, Kapurthala and Gurdaspur is being introduced for kharif maize crop.
Under the Krishonnati Yojana to support critical activities, including agriculture extension, enhancing food security, promoting horticulture, seed development, boosting edible oil production and digital agriculture, Rs 149 crore has been earmarked.
The government has also decided to waive loans of Rs 4,650 crore of defaulters who had availed loans from the Punjab Scheduled Castes Land Development and Finance Corporation (PSCFC).
For the development of housing and urban local areas, an allocation of Rs 5,983 crore has been made and Rs 300 crore earmarked for the Punjab Municipal Services Improvement Project (PMSIP) to strengthen urban governance.
Cheema announced the Mukh Mantri Street Light Yojana for the installation of 2.5 lakh street lights next year across the state.
Cheema said the cost of availing doorstep delivery of government services is being reduced from Rs 120 to Rs 50. According to the Advance Estimates provided by the Directorate of Economics and Statistics, Punjab's economy is on a strong growth trajectory, registering an impressive 9 per cent growth in the current year, he said.
He said as a result of this growth, Punjab's gross state domestic product (GSDP) at current prices has reached Rs 8,09,538 crore.
Cheema added that this momentum of growth is likely to continue, with the GSDP at current prices being projected to expand by 10 per cent in FY 2025-26, reaching the mark of Rs 8,91,301 crore.