In first Punjab budget, AAP govt announces free power from July 1
The government also announced setting up of 117 mohalla clinics across the state in the first year and 16 new medical colleges over the next five years.
The Aam Aadmi Party (AAP)-led Punjab government on Monday presented its maiden budget of ₹155,859.78 crore for 2022-2023 with no additional taxes, and announced providing 300 units of free electricity to every household from July 1.

The government also announced setting up of 117 mohalla clinics across the state in the first year and 16 new medical colleges over the next five years.
Distribution of 300 units of free electricity and opening up of mohalla clinics were among several poll promises the AAP had made in the run up to the February assembly elections. The party scored a landslide victory in the polls.
Finance minister Harpal Singh Cheema, who presented a paperless budget in the state assembly, said the state’s outstanding debt would rise from the current ₹283,756.82 crore to ₹305,361.44 crore in 2022-2023.
In the first year, the government will focus on deteriorating fiscal health, deliver on promises of good governance and concentrate on health, agriculture and education, Cheema said.
“Our focus in the first year will be threefold. To restore deteriorating fiscal health, deliver on the promises of good governance by ensuring effective use of public funds and concentrate on health and education,” he said.
The finance minister proposed a budgetary allocation of ₹11,560 crore for the agriculture sector and ₹ ₹6,947 crore for free power to tube wells used for agriculture.
An allocation of ₹4,731 crore for the health sector is an increase of 23.80% from the last financial year, Cheema said.
The AAP government proposes to establish mohalla/pind (village) clinics to decentralise public health services to the lowest level. It plans to set up 117 mohalla clinics for which an initial allocation of ₹77 crore has been proposed, he said.
Seventy-five of these mohalla clinics will be operational by August 15, he added.
A sum of ₹1,033 crore has been allocated for medical education, which is an increase of 56.60% over financial year 2021-22, the minister said.
Sixteen new medical colleges will be set up in Punjab over the next five years, taking the total number of such colleges to 25. The government will set up two super-specialty hospitals in Patiala and Faridkot in two years. Three more super specialty hospitals will be opened by 2027, Cheema said.
The Punjab Institute of Liver and Biliary Sciences will be set up in Mohali, he added.
An amount of ₹450 crore will be given in the form of incentives to paddy growers who adopt non-conventional methods of direct seeding rice, which helps in saving ground water by at least 20%, the state government said.
The minister also announced setting up of new godowns by Markfed – Punjab’s body for marketing of processed food that functions under the state’s cooperative department – at 13 locations under the Nabard-assisted new project for storage of central pool wheat stocks. It also proposed allocation of ₹56 crore for Markfed for trouble-free procurement of moong.
Besides these, the AAP government in Punjab will set up a model of good governance, Cheema said. “Our government has zero-tolerance towards corruption. Our party’s birth started from the anti-corruption movement,” he said, adding the government is committed to acting against those found indulging in corrupt practices.
A total of 28 corruptions have been registered so far, the minister said, while making a mention of the recent action taken by chief minister Bhagwant Mann against former health minister Vijay Singla in a graft case.
Chief minister field offices will be set up in each district and a tax intelligence unit will be formed to check revenue leakage, Cheema announced.
The government also proposed an allocation of ₹30 crore for scholarships for students belonging to low income groups, especially in the general category, who are studying in government colleges. These scholarships will be granted on the basis of the marks obtained by the student, Cheema said.
The ‘janta’s’ (people) budget was prepared on the basis of 20,384 suggestions received on a government portal and through emails, the finance minister said.
Chief minister Mann described the government’s first budget as balanced, development-oriented and pro-people, and called it a roadmap for a “new Punjab”.
“I congratulate finance minister Harpal Cheema for presenting a historic budget which was made in consultation with the common man,” he said.
AAP national convenor and Delhi chief Minister Arvind Kejriwal said the Punjab government’s budget will take the state towards a “golden future”.
“Previous governments looted and emptied the treasury of Punjab. Our honest government eliminated many mafia after coming to power. Today’s budget will take Punjab towards a golden future,” he tweeted.
Shiromani Akali Dal legislature Manpreet Singh Ayali hit out at the government, saying: “PSPCL is running in losses and the government has not come out with a way to compensate it for running the free power plan.”

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