E-Paper
Punjab government ramps up spending in health, education sectors
Health sector allocation up by 23% to ₹6,879 crore, including ₹2,000 crore for the Mukh Mantri Sehat Yojana; education sector outlay raised by 7% to ₹19,279 crore
The Punjab government has placed health and education at the centre of its 2026-27 budget, announcing major increases in allocations for the two sectors along with expanded welfare measures.
Presenting the budget, finance minister Harpal Singh Cheema said the state government has increased the health sector allocation by 23% to ₹6,879 crore, while the education sector outlay has been raised by 7% to ₹19,279 crore, with a focus on flagship programmes of the Aam Aadmi Party (AAP).
Among key healthcare initiatives, ₹2,000 crore has been earmarked for the Mukh Mantri Sehat Yojana, an ambitious health insurance programme providing ₹10 lakh annual health cover per family. The scheme, recently launched by the government, is expected to benefit around 65 lakh families across the state.
Govt to set up 143 more Aam Aadmi Clinics
Another ₹351 crore has been allocated for Aam Aadmi Clinics, a flagship initiative of the state government. The finance minister said 143 more clinics will be set up in the coming financial year. Currently, 881 Aam Aadmi Clinics are operational, offering 107 essential medicines and 47 diagnostic tests free of cost, and have recorded nearly 5 crore OPD visits.
The government also plans to transform 308 subsidiary health centres into Aam Aadmi Clinics, taking the total number of such clinics to 1,432 within five years.
To strengthen emergency healthcare services, a modern trauma centre will be established at Anandpur Sahib.
7 new medical colleges to be set up
In the field of medical education, ₹1,220 crore has been allocated, while the government announced plans to establish seven new medical colleges in Hoshiarpur, Kapurthala, Sangrur, Shaheed Bhagat Singh Nagar, Lehragaga, Malerkotla and Ludhiana. These institutions are expected to add 600 new MBBS seats. For the Malerkotla medical college, 38.5 acres of land has already been purchased at a cost of ₹49 crore.
In education, the government has earmarked ₹3,500 crore for Sikhya Kranti 2.0, aimed at improving school infrastructure with support from the World Bank over the next six years.
World-class university at Anandpur Sahib
The budget also announced the establishment of a world-class university in the name of Guru Tegh Bahadur at Anandpur Sahib.
Education minister Harjot Singh Bains said the budget serves as a blueprint for Punjab’s future. “We are translating our promise of Punjab Sikhiya Kranti into an irreversible reality. Having secured the nation’s top rank in learning outcomes, we are now equipping our students to compete on the world stage,” he said.
The government also highlighted Punjab’s first rank in the Government of India’s PARAKH Rashtriya Sarvekshan, where the state surpassed Kerala in classroom learning outcomes.
School modernisation plan
To further modernise schools, the government said ₹400 crore is being invested to install 38,649 desktop computers and 8,268 interactive flat panels in government schools, ensuring that every secondary and senior secondary school has a modern computer lab. Additionally, 11 Industrial Training Institutes (ITIs) will be upgraded into Centres of Excellence.
Emphasis on women’s welfare
The budget also placed a strong emphasis on women’s welfare and social security. The government has continued the free bus travel scheme for women, allocating ₹600 crore for the initiative. According to the budget proposals, women undertook around 12 crore free journeys last year under the scheme.
Expenditure on providing free sanitary pads to 13.65 lakh women has also been increased from ₹43 crore to ₹64 crore, with nearly 1.2 crore sanitary pads distributed every month across the state.
For social welfare measures, ₹6,150 crore has been earmarked for monthly financial assistance to 36.52 lakh beneficiaries, including the elderly, widows, destitute women, dependent children and persons with disabilities.
Overall, ₹18,304 crore has been allocated to the social welfare and justice sector, the highest-ever allocation in this category.
The budget also includes ₹360 crore for the Ashirwad Scheme, ₹261 crore for the Post Matric Scholarship Scheme, and ₹75 crore for the Adarsh Gram Yojana.
Reaffirming the government’s commitment to disadvantaged sections, the Finance Minister announced that ₹17,700 crore has been earmarked under the Scheduled Caste Sub Plan, which constitutes 35.23 per cent of the state’s total development outlay for 2026–27.
