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Debt-to-GDP ratio down from 48% to 45% with fiscal mgmt: Cheema
The Punjab assembly on Wednesday passed the state budget for the 2026-27 fiscal year, presented by finance minister Harpal Singh Cheema, after a three-day debate. Concluding the discussion, Cheema highlighted the Aam Aadmi Party (AAP) government’s achievements over the past four years and addressed concerns raised by MLAs
CHANDIGARH: The Punjab assembly on Wednesday passed the state budget for the 2026-27 fiscal year, presented by finance minister Harpal Singh Cheema, after a three-day debate. Concluding the discussion, Cheema highlighted the Aam Aadmi Party (AAP) government’s achievements over the past four years and addressed concerns raised by MLAs.
Responding to opposition questions on state debt, Cheema said 85% of current funds are being used to service inherited liabilities, yet the government has reduced the debt-to-GDP ratio from 48% to 45% and cleared liabilities worth ₹21,860 crore. He emphasised that the state has adhered to FRBM Act limits and avoided excessive borrowing, managing short-term cash efficiently through the Sinking Fund and Guarantee Redemption mechanisms.
“The government has successfully rolled out the ₹1,500 financial assistance for women, fulfilling all five major guarantees promised to the people of Punjab. Not a single rupee of sugarcane dues owed by the state government is pending. The outstanding ₹27 crore belongs to a private mill in Phagwara and its properties have already been attached to ensure farmers receive their rightful payments,” he added.
“The Punjab government’s zero tolerance policy towards theft has led to a record-breaking revenue growth. Excise revenue increased from ₹20,000 crore to ₹53,000 crore, while GST collections doubled from ₹61,000 crore to ₹1,21,000 crore. Additionally, stamp registration revenue rose from ₹12,000 crore to ₹30,000 crore. This financial turnaround has been made possible through strict vigilance and honest governance,” Cheema said.
Replying to questions raised by MLA Barindermeet Singh Pahra regarding MLA Local Area Development funds, Cheema said: “The MLA Local Area Development funds have been doubled from ₹5 crore to ₹10 crore per MLA, enabling elected representatives to bring forward comprehensive development proposals. There are certain guidelines for utilising these funds and MLAs should ensure that these guidelines are followed.”
The finance minister further said: “ ₹2,000 crore has been earmarked for the health insurance scheme and if required, this allocation can be increased later in the year.”
On the Old Pension Scheme, Cheema said: “An expert committee led by the chief secretary is studying the fiscal impact of the scheme to make a long-term decision. The committee is also examining the financial challenges faced by states such as Himachal Pradesh, Rajasthan and Chhattisgarh after implementing similar policies.”
