Ahead of 2027 polls, Cheema’s ‘saari Guarantiyan puri karan wala Budget’

Stating that Punjab’s economy has demonstrated steady resilience and structural stability over the past year, Cheema said for 2026-27, the gross state domestic product (GSDP) is projected to reach Rs 9,80,635 crore with an anticipated growth of 10 per cent over the revised estimate of Rs 8,91,487 crore for 2025- 26.

The effective revenue deficit is estimated at 2.06 per cent of GSDP and the fiscal deficit at 4.08 per cent of GSDP, both within the limits prescribed under the Fiscal Responsibility and Budget Management (FRBM) framework.

According to the budget documents, the state’s outstanding debt has been projected at Rs 4,47,754.78 crore for 2026-27 as against Rs 4,07,784.13 crore for 2025-26 (revised estimates).

“The debt-to-GSDP ratio has been reduced from 48.25 per cent to 44.47 per cent,” Cheema said, adding that the government remains committed to strengthening the financial health of Punjab while investing in infrastructure and public welfare

He said the state has injected Rs 1,000 crore into the Guarantee Redemption Fund and doubled capital expenditure to Rs 18,381 crore for asset creation.

The government has proposed a record allocation of Rs 18,304 crore for women empowerment and social welfare schemes — a 96 per cent increase over last year. It includes Rs 9,300 crore for ‘Mukh Mantri Mawan Dhian Satikar Yojana’, under which Rs 1,000 per month will be given to all women except Scheduled Caste women, who will be getting Rs 1,500 per month. It also includes Rs 600 crore for free bus travel for women, Rs 6,150 crore for social security pensions, Rs 932 crore for Integrated Child Development Services (ICDS), and Rs 65 crore for free sanitary pads for adolescent girls under the Navi Disha scheme.

Cheema said the government has introduced the ‘Meri Rasoi’ scheme with a Rs 900 crore allocation to provide free quarterly essential ration kits to nearly 40 lakh families. The kits contain 2 kg sugar, 2 kg chana dal, 1 litre mustard oil, 200 gm turmeric and 1 kg salt.

He also proposed an outlay of Rs 19,279 crore for the education sector, with a nearly 7 per cent hike over last year. Noting that education reforms in Punjab have moved from promise to structural transformation, Cheema said that the state now ranks number one in classroom learning outcomes, surpassing even Kerala.

A new reform programme, Sikhiya Kranti 2.0, will be implemented with an outlay of Rs 3,500 crore over the next six years in collaboration with the World Bank to transform school education. The government has also granted in principle approval for establishing a world-class university in the name of Sri Guru Tegh Bahadur at Sri Anandpur Sahib.

For the health sector, Cheema proposed a budgetary outlay of Rs 6,879 crore in FY27, a rise of 23 per cent over last year. He earmarked Rs 2,000 crore for the Mukh Mantri Sehat Bima Yojana to provide cashless health insurance cover of up to Rs 10 lakh to 65 lakh families. He also announced opening of 143 more Aam Aadmi Clinics in the state next fiscal. A modern trauma centre and a dedicated mother-and-child care hospital will also be set up in Sri Anandpur Sahib.

Cheema has allocated rs 15,377 crore for agriculture and farmers’ welfare, an increase of 6 per cent over last year. Key provisions include Rs 600 crore for crop residue management to curb stubble burning, Rs 7,715 crore for agricultural power subsidy, and a Rs 1,300 crore project with JICA to promote climate-resilient, high-value horticulture across Punjab. The government will also provide Rs 40 crore for direct seeding of ice and incentives to encourage a shift from paddy to kharif maize in six districts, Pathankot, Gurdaspur, Bathinda, Sangrur, Jalandhar and Kapurthala.

On rural infrastructure, 11,901 km of link roads are being upgraded with NABARD assistance at a cost of Rs 2,597 crore. The government also proposes to complete the remaining 19,876 km of rural roads through the Mandi Board and the Public Works Department at an estimated cost of Rs 7,606 crore, including five-year maintenance.

Urban development will also see a major push, with the Municipal Development Fund increased fourfold to Rs 1,000 crore from Rs 225 crore last year. An additional Rs 500 crore has been earmarked for the Punjab Municipal Services Improvement Project to strengthen long-term urban water security in Amritsar and Ludhiana.

The industries and commerce sector has been allocated Rs 2,805 crore, including Rs 500 crore towards fiscal incentives to promote investment and employment generation.

Cheema has proposed Rs 1,791 crore for sports, an increase of 83 per cent overt last year, with plans to build 6,000 additional village playgrounds and 5,000 indoor gyms.

Under tourism and cultural affairs, Rs 100 crore has been allocated to commemorate the 650th birth anniversary of Sri Guru Ravidas as a state-level observance. Another Rs 313 crore has been provided for the Mukh Mantri Tirath Yatra Yojana to facilitate pilgrimages for nearly 7.15 lakh citizens.

The FM also hiked the budget allocation from Rs 585 crore in 2025-26 to Rs 1,170 crore in 2026-27 under the Rangla Punjab Vikas Scheme, aimed to ensure balanced and equitable development across all regions of the state.