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Punjab Budget 2026: AAP fulfills pre-poll guarantee with monthly cash for 97% women

With an outlay of Rs 9,300 crore in Punjab Budget 2026-27, the Mukh Mantri Mawan Dhiyan Satikar Yojana will provide Rs 1,500 to SC women and Rs 1,000 to others, excluding only a tiny fraction of high-income earners and officials.

Punjab Budget CM MannPunjab CM Bhagwant Mann (right) and Finance Minister Harpal Cheema during Punjab Budget session on Sunday. Express photo by Kamleshwar Singh

Nearly four years after it swept to power in Punjab on the promise of direct financial support to women, the Aam Aadmi Party (AAP) government Sunday announced a monthly assistance of Rs 1,000 for women belonging to the general category, and Rs 1,500 for Scheduled Caste (SC) women under the Mukh Mantri Mawan Dhiyan Satikar Yojana, seeking to fulfil one of its key prepoll promises.

Presenting the Punjab Budget 2026-27 in the state Assembly on International Women’s Day, Finance Minister Harpal Singh Cheema said the scheme will cover about 97 per cent of women under the current eligibility criteria. The government has earmarked Rs 9,300 crore for the programme. The announcement was long-awaited since the party’s sweeping victory in the 2022 Assembly elections.

Announcing the Mukh Mantri Mawan Dhian Satikar Yojna, Cheema said the Bhagwant Mann government will transfer Rs 1,000 per month directly to the accounts of all adult women. Moreover, for women belonging to the SC community, the government will transfer Rs 1,500 per month directly to their accounts.

Cheema said this will not just be India’s but the world’s first universal cash transfer scheme for women. “Every woman in Punjab above 18 years of age will be eligible to enrol under this scheme, barring only a few, i.e. existing or past permanent government employees, existing and past MPs/MLAs and income tax payees. Even women enrolled under existing social security pension schemes, e.g. old-age pension, or widow/destitute women pension, or disability pension scheme, will be eligible under this scheme.”

In all, around 97 per cent of all adult women in Punjab will be eligible under this scheme, which is the highest for any state in India, he said, adding this initiative seeks to promote economic independence, strengthen women’s role in household decision-making, improve health and nutritional outcomes, and encourage continued education and higher aspirations among girls.

“It affirms our belief that empowerment must reflect in tangible financial security and greater dignity for women across Punjab,” he said.

Beyond cash transfer

The budget projects the Gross State Domestic Product, GSDP, of Punjab at Rs 9,80,635 crore for 2026- 27, nearly 10 per cent higher than the revised estimate of Rs 8,91,487 crore for 2025- 26. The revenue deficit has been pegged at 2.06 per cent of GSDP and the fiscal deficit at 4.08 per cent, both within the limits prescribed under the Fiscal Responsibility and Budget Management (FRBM) framework.

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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. Besides the monthly assistance scheme, it 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.

Under the Meri Rasoi initiative, the government will distribute quarterly ration kits containing 2 kg sugar, 2 kg chana dal, 1 litre mustard oil, 200 gm turmeric and 1 kg salt free of cost to nearly 40 lakh families covered under the NFSA, Smart Ration Card scheme. A provision of Rs 900 crore has been made for this.

Education and health

The education sector will receive Rs 19,279 crore, about 7 per cent higher than last year. The government claimed that Punjab 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.

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The health sector allocation has been increased to Rs 6,879 crore, a rise of 23 per cent over last year. The government has 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.

In addition, 143 new Aam Aadmi Clinics will be established across the state, and 308 subsidiary health centres will be upgraded to clinics, with an allocation of Rs 351 crore. A modern trauma centre and a dedicated mother-and-child care hospital will also be set up in Sri Anandpur Sahib.

Agriculture, farmers’ welfare

Agriculture and farmers’ welfare have been allocated Rs 15,377 crore, 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.

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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. The government said foreign direct investment inflows into Punjab had doubled over the past three years, with the state improving its national ranking from 15th to 11th.

Sports, tourism

In sports, the government has earmarked Rs 1,791 crore, an increase of 83 per cent, to build 6,000 additional village playgrounds and 5,000 indoor gyms across the state.

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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.

Highlighting its anti-drug drive, the government said that over the past year, 36,686 cases had been registered against 52,331 traffickers under the NDPS Act, leading to the seizure of more than 33,000 kg of narcotics through intelligence-led operations.

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. X (Twitter): @kanchan99 ... Read More

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