3 min readChandigarhUpdated: Mar 9, 2026 07:03 AM IST
Chief Minister Bhagwant Mann leads the way as Punjab unveils its 2026-27 Budget. With the historic launch of monthly financial aid for women on #InternationalWomensDay, the CM declares that every pre-poll promise has now been transformed into a reality. (File)
Buoyed by record collections from excise, the Bhagwant Mann-led Aam Aadmi Party in Punjab has outlined a strategy to strengthen the state’s finances through improved revenue mobilisation and higher capital investment in the financial year 2026–27.
According to the Budget estimates presented in the Assembly by Finance Minister Harpal Singh Cheema, total revenue receipts are projected at Rs 1,26,190 crore for FY 2026–27. Of this, own tax revenue is expected to contribute Rs 70,851 crore, while non-tax revenue has been pegged at Rs 15,687 crore.
Punjab will also benefit from higher transfers from the Centre following recommendations of the 16th Finance Commission.
The state’s share in horizontal devolution has been increased from 1.807% to 1.996%, leading to a rise in its share of central taxes to Rs 30,464 crore in FY 2026–27, compared to Rs 25,171 crore in 2025–26. It translates to an increase of Rs 5,293 crore. In addition, grant-in-aid from the Centre is estimated at Rs 9,188 crore for the coming financial year.
The government said improved governance and tighter systems have led to stronger revenue performance across major sectors. The excise sector has recorded a substantial rise in collections. During the five-year tenure of the AAP government, excise revenue is projected to reach Rs 53,122 crore, significantly higher than Rs 27,934 crore collected during the previous Congress regime and Rs 20,545 crore during the SAD-BJP alliance regime.
Similar improvements have been recorded in the stamps and registration sector. Receipts during the current government’s tenure are projected at Rs 30,367 crore, compared with Rs 12,469 crore under the Congress tenure and Rs 12,387 crore during the SAD–BJP rule. The government has set a rather ambitious target of Rs 9,000 crore for FY 2026–27. Last year, it was Rs 7,000 crore. This year, the government hopes for a substantial increase as it looks at selling property in cities.
To resolve the long-pending tax disputes, the government introduced a One Time Settlement (OTS) policy in 2024, under which 70,311 dealers availed waivers totalling Rs 866 crore, while the state recovered Rs 164 crore. A follow-up OTS–2025, effective from October 1, 2025, has also received a positive response, with over 7,400 applications and more than Rs 100 crore recovered so far.
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The state has also implemented reforms in GST administration by leveraging technology and data analytics. An in house analytical tool has been developed to integrate data from multiple portals and detect potential tax evasion. The government also plans to establish a dedicated anti-evasion wing to strengthen enforcement, Cheema said in his speech.
Over the last 46 months, Punjab has collected Rs 83,739 crore in GST revenue, compared with Rs 61,286 crore during the five-year tenure of the previous government. The state has set an ambitious GST revenue target of Rs 32,000 crore for FY 2026–27 even as it was not able to meet its target of Rs 27,650 crore last fiscal. It was able to collect only Rs 27,000 crore.
As part of fiscal discipline measures, the government has contributed Rs 1,000 crore to the Consolidated Sinking Fund and Rs 1,000 crore to the Guarantee Redemption Fund (GRF) to safeguard against liabilities arising from guarantees extended to boards and corporations. As a result, the combined funds have increased by 287%, from Rs 3,027 crore in March 2022 to Rs 11,720 crore in December 2025.
Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India.
Professional Background
Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state.
Experience: She previously worked with The Tribune and has played a key role in launching various city editions.
Special Projects:
Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship.
Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river.
Recent Notable Articles (Late 2025)
Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government:
1. Legislative & Governance Standoffs
"Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA.
"Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor.
"Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas.
2. Political Analysis & Rural Polls
"Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections.
"AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections.
"Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership.
3. Law Enforcement & Bureaucracy
"Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government.
"Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP.
4. Welfare & Economy
"Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program.
"Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025).
Signature Beat
Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens.
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