Punjab's AAP govt announces ₹1,000 a month for women: Big budget move a year ahead of polls

Announced on Women's Day, scheme to cover 97% of all adult women in Punjab; the highest such coverage in India, says finance minister Harpal Singh Cheema.

With about a year left for elections in the state, Punjab's Aam Aadmi Party (AAP) government on Saturday announced a scheme to fulfil its promise of monthly cash transfer to women. Under this initiative, the Bhagwant Mann-led government will transfer ₹1,000 per month to all adult women; for those from Scheduled Caste community, it's set at ₹1,500.

Punjab finance minister Harpal Singh Cheema being welcomed by women AAP MLAs as he arrives to present the state budget in the Vidhan Sabha on International Women’s Day on Sunday. (Ravi Kumar/HT Photo)

In the budget for the next fiscal, presented on what happened to be International Women’s Day, finance minister Harpal Singh Cheema announced the ₹9,300-crore ‘Mukh Mantri Mawan Dhian Satikar Yojana’ (Chief Minister's Respect for Mother and Daughters Scheme).

The direct benefit transfer scheme is designed to be nearly universal, covering approximately 97% of all adult women in Punjab, the highest such coverage in India.

“Every woman in Punjab above 18 years of age will be eligible to enroll under this scheme barring only few, that is, existing or past permanent government employees, existing and past MPs and MLAs, and income tax payees,” Cheema said.

“Even women enrolled under existing social security pension schemes — such as old-age or widow/destitute women pension, or disability pension scheme — will be eligible under this scheme,” he added.

Punjab budget: ‘Tribute to mothers and daughters’

Overall, minister Cheema proposed a total budget expenditure of ₹2,60,437 crore for the 2026-27 fiscal, framing the proposals as a tribute to the “mothers and daughters” of the state.

The budget apparently aims to balance aggressive welfare spending with fiscal discipline in the run-up to the 2027 assembly elections.

The FM proposed ₹18,304 crore for the social welfare and justice , the highest-ever allocation for the department. This includes ₹360 crore for the Ashirwad Scheme and ₹261 crore for post-matric scholarships.

Notably, the proposed power subsidy has been scaled down to ₹15,550 crore, compared to ₹20,500 crore in the 2025-26 budget estimates, following a recent Punjab State Electricity Regulatory Commission order.

Infrastructure and rural development

To spruce up local infrastructure, the allocation for the Rangla Punjab Vikas Scheme has been doubled to ₹1,170 crore, providing ₹10 crore for each of the 117 assembly constituencies.

In the rural sector, having upgraded 40,103 km of village roads, the government aims to complete the remaining 19,876 km at an estimated cost of ₹7,606 crore.

Agriculture, health and education

Cheema announced ₹15,377 crore for agriculture and allied sectors, including ₹40 crore to promote direct seeded rice (DSR) to conserve groundwater.

In a major healthcare push, the FM allocated ₹2,000 crore for the Mukh Mantri Sehat Yojna, providing ₹10 lakh annual health cover per family.

Another ₹1,220 crore has been earmarked specifically for the medical education and research sector.

To mark the 350th martyrdom anniversary of Guru Tegh Bahadur, the government announced a new university to come up at Sri Anandpur Sahib, alongside a modern trauma centre and a dedicated Mother and Child Care Hospital in the Sikh holy city.

Additionally, 100 more Aam Aadmi Clinics are set to be established.

The education sector received a significant boost with an outlay of ₹19,279 crore, a 7% increase over the previous year.

Debt burden and growth

While the government eyes ambitious growth, the fiscal deficit is estimated at 4.08% of the GSDP, with the effective revenue deficit pegged at 2.06%.

Punjab’s outstanding debt is projected to hit ₹4,47,754.78 crore by March 31, 2027, up from ₹4,07,784.14 crore in the 2025-26 revised estimates.

The GSDP is projected to reach ₹9,80,635 crore in FY 2026-27, marking a 10% growth rate. The FM attributed this momentum to improved agricultural productivity and a resurgent services sector.

“These estimates reaffirm our resolve to combine responsible fiscal management with sustained support for economic growth,” Cheema noted, citing icons like cricketer Harmanpreet Kaur as symbols of the “strength and aspirations” the budget seeks to honour.

Addressing the state’s narcotics challenge, the budget also proposed a comprehensive Drug and Socio-Economic Survey to commence in April 2026.