Presenting the Punjab Budget 2026-27 in the Vidhan Sabha, Finance Minister Harpal Cheema made a bold claim of expanding canal irrigation to nearly seven million acres (70 lakh acres) by the end of next fiscal — a move that would drastically reduce dependence on groundwater and mark one of the biggest shifts in irrigation patterns in decades.
“With great pride, I can make the commitment to the people of Punjab that…the total area under canal irrigation by the end of the year will be close to 7 million acres; or almost 90% of the designed canal irrigated area,” Cheema said as he outlined the government’s commitment to reviving the canal network and increasing its reach across agricultural areas.
If the proposed expansion is realised, nearly 70 per cent of Punjab’s cultivated land could be irrigated through canals, leaving only about 30 per cent dependent on groundwater.
Punjab currently has around 41 lakh hectares (roughly 10 million acres) of land under agricultural and horticultural crops. However, canals have historically played only a limited role in irrigating this vast area.
When the Aam Aadmi Party government assumed office in 2022, canal irrigation covered only about 22.3 lakh acres (over nine lakh hectares), accounting for around 22 per cent of the state’s cultivable land. The remaining farmland relied largely on groundwater pumped through tubewells.
According to official estimates, Punjab has more than 14 lakh electric tubewells, apart from thousands of solar-powered and diesel pumps used by farmers to draw water from underground aquifers. As a result, nearly 78 per cent of farmland in the state currently depends on groundwater irrigation — something that has gradually pushed the water table deeper across large parts of the state.
Punjab’s groundwater crisis has been building for years. Out of 153 agricultural blocks in the state, nearly 75 per cent have already been classified as over-exploited or critical, meaning groundwater extraction far exceeds natural recharge. In many districts, water tables have steadily declined due to widespread cultivation of water-intensive paddy and the availability of free electricity for pumping groundwater.
Experts note that Punjab’s agricultural system has remained deeply dependent on tubewells over the past five decades.
“Farmers rely on tubewells because they provide control and certainty,” said a water management expert from Punjab Irrigation department familiar with irrigation systems in the state. “With canals, water availability depends on rotation schedules and maintenance of the network. Unless the system becomes reliable, farmers may continue to rely on groundwater.”
Farmers too remain cautious about the proposed shift. “In many villages, canal water either does not reach or comes very irregularly,” said Kuldeep Singh, a farmer from Jalandhar district. “Even if canals improve, farmers will still keep their tubewells as backup.”
The government now says it has undertaken a large-scale revival of Punjab’s canal network through desilting, lining and modernization works. According to the budget, from 2.23 million acres in 2022, we will have expanded our reach to 5.3 million acres by April 2026 through the large scale, restoration of canals and water courses. According to the budget, surface water utilisation has seen a 13% jump which means around 2.5 million acres (over 10 lakh hectares) of farmland is under canal irrigation now.
Projects highlighted in the budget include strengthening the Ferozepur Feeder Canal, modernising distributaries and extending canal networks to regions that have historically lacked reliable canal supply. Officials say these efforts are aimed at ensuring that water also reaches tail-end villages, which have often received little or no canal irrigation.
Irrigation experts say the shift from groundwater to canal irrigation will require more than infrastructure repair.
“If canal irrigation expands significantly, it could reduce the pressure on groundwater,” said an irrigation scientist at Punjab Agricultural University. “But the key issue is whether canal water will actually reach farmers consistently.”
Officials acknowledge that infrastructure upgrades alone will not guarantee success.
“Achieving that shift will require not only completing canal restoration projects but also ensuring that water distribution remains efficient, equitable, regular maintenanc, repairs and reliable,” said a senior officer from the Punjab Irrigation department.
“For now, the government’s claim marks an ambitious promise in the state’s budget — one that could either mark a turning point in Punjab’s water crisis or remain another target in a long list of irrigation reforms that struggled to change ground realities,” SAD Bharti Kisan union (Dakaunda) general secretary Jagmohan Singh.
Harpal Cheema highlighted the "success of robust excise policy measures and efficient administrative practices". 
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