Premium

With dole and free travel for women, Punjab’s freebies bill surpasses revenue deficit

Even as the Punjab Government has saved Rs 6,950 crore on power subsidy, the total bill of freebies has reached Rs 26,300 crore, which is more than the revenue deficit of Rs 21,955 crore.

4 min readChandigarhMar 8, 2026 06:26 PM IST

Punjab Finance Minister Harpal Cheema and Chief Minister Bhagwant Mann during the presentation of the Budget on Sunday. (Express photo by Kamleshwar Singh)

The slashing of electricity prices has paid dividends for the Punjab Government, with its power subsidy bill coming down to Rs 15,550 crore from last year’s budget estimates of Rs 22,500 crore. This will help the government fund its Rs 1,000 monthly financial assistance for women to an extent.

Even as the Government has saved Rs 6,950 crore on power subsidy alone, the total bill for freebies reached Rs 26,300 crore, exceeding the revenue deficit of Rs 21,955 crore. Besides paying Rs 15,500 crore on free power for agriculture and domestic sectors, the Government will spend Rs 9,300 crore on the dole for women and Rs 600 crore on free travel for women, announced in the budget presented on Sunday.

These three freebies will together burden the exchequer by Rs 26,300 crore. The amount is comparable to the revenue deficit, which is pegged at Rs 21,955 crore. The real deficit will be calculated by the end of the 2026-27 fiscal year. Last year, the deficit exceeded the current estimate. In the last fiscal, the Government set aside Rs 23,957 crore for 2025-26. After the revised estimates, it turned out to be Rs 27,007 crore. If the exchequer did not have the burden of freebies, the budget would have been a surplus budget.

The power subsidy bill has been reduced. Rs 9,992 crore was earmarked for free power to the farm sector in 2025-26. In the new budget, the allocation has been reduced to Rs 7,715 crore. Similarly, the subsidy for the domestic sector has come down to Rs 5,771 crore from Rs 7,614 crore. Rs 2,064 crore will go toward paying power subsidies to the industry. Last year, it was Rs 2,894 crore.

The AAP Government is responsible for burning a hole worth Rs 15,071 crore in the exchequer by paying financial assistance to women and free power supply to the domestic sector.

Former chief minister Rajinder Kaur Bhattal started the free power scheme for farmers. It has continued ever since, with Captain Amarinder Singh discontinuing it for less than two years during his 2002-2007 stint as chief minister.

There have been cries to rationalise the farm power subsidy, as big farmers also receive free power for several of their tubewells.

Story continues below this ad

According to revised estimates, the Government spent Rs 19,372 crore on power subsidy in 2025-26. The Government had announced 300 units of free power for domestic consumers in July 2022, three months after coming to power.

Sunday’s budget speech said that 90 per cent of residents availed of the power subsidy.

Earlier, the state used to give free power to farmers only for 14 lakh tubewells in the state, and the bill had never crossed Rs 10,000 crore. However, ever since the AAP came to power, the bill has crossed the Rs 20,000 mark.

Salaries also burn a major hole in the coffers. The Government has set aside Rs 39,115 crore for salaries, up from last year’s estimate of Rs 36,427 crore. The pension bill will be worth Rs 22,465 crore, up from Rs 20,750 crore last year.

No longer bankrupt: Harpal Cheema

Story continues below this ad

Finance Minister Harpal Cheema said that the Government was no longer bankrupt, as it was during Congress rule. “I am a labourer’s son. We work hard. We have intent. We were not born with a silver spoon. That is why we are yielding,” he said.

He said, “We have achieved impressive revenue growth across each major revenue stream. The excise sector stands as clear evidence that governance intent makes a difference. With transparent policy, firm enforcement and zero tolerance towards leakage, revenue realisation has improved substantially. During the Aam Aadmi Party Government’s five-year tenure, excise revenue is projected at Rs 53,122 crore. This is a marked increase compared to Rs 27,934 crore during the previous Congress Government’s five-year period and Rs 20,545 crore during the SAD–BJP Government.”

This revenue augmentation has not been limited to the excise sector alone. Similar improvements are visible in all other areas, the finance minister said.

Kanchan Vasdev

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

Stay updated with the latest - Click here to follow us on Instagram

Loading Recommendations...

Apr 19: Latest News

Live Blog