Chandigarh:
Punjab’s Finance, Excise and Taxation Minister Harpal Singh Cheema said that the state has achieved major financial progress under the Aam Aadmi Party (AAP) government). According to him, Punjab has emerged among the top three states in India in revenue growth due to structural reforms, better financial discipline, and improved transparency in governance.
Speaking at a press conference at Punjab Bhawan, Cheema presented detailed figures showing significant improvements in the state’s financial performance over the past four years.
Strong Growth in State Tax Revenue
The minister said Punjab’s own tax revenue has increased significantly. It rose from ₹37,327 crore in 2021–22, which was 6.39% of the state’s Gross State Domestic Product (GSDP), to ₹57,919 crore in 2024–25, or 7.15% of GSDP.
Excise Revenue Up 86.77% in Less Than Four Years
Cheema highlighted that excise revenue has grown by 86.77% in less than four years.
- During the Akali-BJP government’s five-year tenure, total excise revenue was ₹20,545 crore, averaging ₹4,109 crore per year.
- Under the Congress government, the total over five years was ₹27,395 crore, with an annual average of ₹5,479 crore.
In contrast, the AAP government has already collected ₹37,975 crore in excise revenue by January 2026, with an annual average of ₹9,907 crore.
Excise revenue was ₹6,157 crore in 2021–22 during the Congress government and is expected to reach ₹11,500 crore in the 2025–26 financial year. As a share of GSDP, excise revenue has increased from 1.05% in 2021–22 to 1.28% in 2024–25.
GST Revenue Also Sees Big Jump
Cheema said the state has also seen strong growth in GST collections. He criticized the previous Congress government for depending heavily on GST compensation from the central government instead of expanding the tax base.
- During the Congress government, total GST collection was ₹61,286 crore over five years, averaging ₹12,257 crore annually.
- Under the AAP government, ₹83,739 crore has been collected by January 2026, with the annual average rising to ₹21,845 crore.
State GST revenue increased from ₹15,542 crore in 2021–22 and is expected to cross ₹26,500 crore in 2025–26, marking a 70.5% increase.
Stamp Duty Revenue Surges
Revenue from stamp duty and property registrations has also grown sharply.
- The Akali-BJP government (2012–17) collected ₹12,387 crore, averaging ₹2,477 crore per year.
- The Congress government (2017–22) collected ₹12,469 crore, with an annual average of ₹2,494 crore.
In comparison, the AAP government has already collected ₹19,515 crore by January 2026, averaging ₹5,091 crore per year. This is about 60% higher than what previous governments collected during their five-year terms.
Higher Capital Spending
Cheema also highlighted increased spending on infrastructure and development.
- Akali-BJP government: ₹14,641 crore capital expenditure in five years
- Congress government: ₹19,356 crore
- AAP government: expected to spend ₹31,630 crore
Debt Burden Still a Challenge
The minister said the AAP government inherited a debt of nearly ₹3 lakh crore. Because of this:
- 35% of new loans are used to repay past liabilities.
- 50% goes toward paying interest on previous debt.
This leaves less than 15% of borrowed funds available for development work.
Despite these challenges, the government claims it has reduced the debt-to-GSDP ratio from 48.25% to 44.47%.
Financial Support and Reforms
The government has also:
- Allocated ₹7,000–8,000 crore for implementing the Pay Commission.
- Cleared ₹14,191 crore in pending salary arrears (2016–2021).
- Provided ₹2,566 crore to support struggling state institutions such as PUNSUP, Land Mortgage Bank, PSIDC, and Mandi Board.
- Paid ₹1,750 crore in pending dues for central schemes left unpaid by the previous government.
Building Financial Reserves
Punjab has increased its financial reserves significantly. By December 2025:
- Consolidated Sinking Fund grew from ₹3,027 crore to ₹10,738 crore.
- Guarantee Redemption Fund increased to ₹982 crore.
Together, these funds now total ₹11,720 crore, marking a 287% increase in less than four years.
Growth Despite Reduced Central Assistance
Cheema said these improvements came despite a sharp fall in central financial support.
Between 2017 and 2022, the Congress government received ₹72,340 crore in revenue deficit grants and GST compensation from the Centre. In comparison, the current government has received ₹27,832 crore by January 2026, which is 62% less.
Digital Reforms in Finance Department
The minister also announced several digital reforms to improve transparency and efficiency, including:
- Launch of a Pension Seva Portal to digitize pension distribution.
- Introduction of an e-Deposit Management System to prevent banking fraud and improve transparency.
- Over ₹800 crore in incentives received for digitizing government schemes under the SNA-Sparsh initiative.
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