Punjab Budget 2026-2027

March 10, 2026

Abhishek Vij

On Sunday, March 8, on the occasion of International Women’s Day, Finance Minister Harpal Singh Cheema presented a budget of Rs 260,437 crore for the financial year 2026-27 in the Punjab Assembly. Before presenting the budget, the Finance Minister sought his mother’s blessings, paid homage to Baba Saheb Bhimrao Ambedkar and Shaheed-e-Azam Bhagat Singh, and also met Chief Minister Bhagwant Mann.

The Finance Minister dedicated this year’s budget to mothers and daughters, calling it a budget that fulfills all guarantees. The most significant feature of the budget was the announcement of a monthly allowance of Rs 1,000 for women in the state on the occasion of Women’s Day. This amount will be given to women belonging to the Scheduled Caste category, Rs 1,500 per month.

This amount will be provided to all women above 18 years of age, except taxpayers and pensioners. The second most significant development is that a budget of Rs 19,279 crore has been allocated for education in the year 2026-27, which is 7 percent more than last year. This means that the Punjab government has reiterated its commitment to making the state a leader in education. A ‘Sikhya Kranti 2.0’ campaign will be launched to revolutionize the education system. A total of Rs 3,500 crore will be spent on this initiative over the next six years.

Economic experts will continue to analyze the budget in the coming days. But among the key budget announcements, the Punjab government has given in-principle approval to establish a world-class university in the name of Sri Guru Tegh Bahadur Ji in Sri Anandpur Sahib. Under the PM Setu scheme, some ITIs are being developed as Centers of Excellence through a hub-and-spoke model. Rs.569 crore will be spent on technical education in 2026-27. Under the Punjab government’s largest health plan, a budget of Rs.2,000 crore has been proposed for the year 2026-27 to provide free treatment up to Rs 10 lakh to all 6.5 million families in the state.

100 new Aam Aadmi Clinics are being opened this year, while 143 more clinics will be opened throughout the year. 308 health centers will be upgraded, with a budget of Rs 351 crore proposed for this. Overall, Rs 6,879 crore will be spent this fiscal year to strengthen Punjab’s health infrastructure. 38.50 acres of land has been purchased for Rs 49 crore to build a new medical college in Malerkotla. A budget of Rsa 12,597 crore has been allocated for the repair and upgrade of 40,103 kilometers of damaged rural link roads in Punjab. The Punjab government has a special focus on the agricultural sector. To continue providing free and subsidized electricity to farmers, a provision of Rs 7,715 crore has been made for agricultural electricity subsidies.

A budget of Rs 2,805 crore has been allocated for the development of the industry and commerce sector. A new industrial policy has also been implemented in the state. This policy will provide investors and producers with the opportunity to start their operations in a seamless manner, instead of dealing with lengthy paperwork. A provision of Rs 1,170 crore has been made for the Rangla Punjab Vikas Yojana (Rangla Punjab Vikas Yojana). It is noteworthy that under this scheme, funds are provided to each assembly constituency for development projects. To connect youth with employment, a budget of Rs 287 crore has been allocated for employment and skill development schemes in 2026-27.

Under the “Khedda Punjab Badla Punjab” campaign, more than 3,000 model villages, playgrounds, and 1,000 rural indoor gyms are being built. A budget of Rs 1,791 crore has been proposed for sports infrastructure and athletes under this campaign. A budget of Rs 11,577 crore has been allocated for the Home, Justice, and Prisons Departments for the fiscal year 2026-27. Specifically, Rs 535 crore will be spent on improving prison security and infrastructure. These were the key budget announcements, which will impact every section of society. While all parties will continue to analyze this budget, criticizing or praising it in their own ways, the 2026 Budget can be considered welcome, considering the new schemes and initiatives taken in this budget for the upliftment of all sections of Punjab.