Finance and Economy News

Punjab Budget 2025-26: ₹5,598 Crore for Health, Focus on Combating Drug Menace

₹2.36 Lakh Crore Budget Unveiled with No Fresh Taxes

Chandigarh, March 26: Punjab Finance Minister Harpal Singh Cheema presented a ₹2.36 lakh crore budget for FY 2025-26, emphasizing the fight against drug addiction and a major boost to the healthcare sector.

With a budgetary allocation of ₹5,598 crore for health, marking a 10% increase over the previous year, the Punjab government aims to enhance healthcare access and affordability. Importantly, no fresh taxes have been imposed, ensuring no additional burden on citizens.

However, the budget remained silent on one of AAP’s key election promises—providing ₹1,000 per month to women.

“Drug Problem is the Biggest Threat to Punjab’s Prosperity”

While presenting the budget, Cheema highlighted drug addiction as the most significant challenge to Punjab’s progress. To combat this crisis, the government has planned Punjab’s first-ever “Drug Census” in the upcoming fiscal year.

This household-level survey will collect data on:

  • Drug usage patterns across Punjab

  • Effectiveness of de-addiction centers

  • Socio-economic factors linked to substance abuse

“We have to fight this war not just with force and weapons, but scientifically through data and analysis,” Cheema said. The collected data will be used to frame a comprehensive strategy for drug eradication.

Universal Health Insurance Extended to 65 Lakh Families

All Families to Get ₹10 Lakh Insurance Cover

In a landmark move, the Punjab government has announced universal coverage of its health insurance scheme for all 65 lakh families in the state, eliminating discrimination based on income, location, or social category.

  • Every family will now be covered under a ₹10 lakh per annum health insurance policy.

  • Families already enrolled in central government schemes will receive an additional top-up cover of ₹5 lakh from the Punjab government.

  • Those under Mukh Mantri Sarbat Sehat Bima Yojana will receive “Sehat Cards”, allowing cashless treatment at government and private hospitals.

This initiative marks the first time in Punjab’s history that a state government has extended health coverage to all residents, ensuring affordable and accessible healthcare.

Strengthening Border Security with 5,000 Home Guards

Second Line of Defense to Assist BSF

To enhance security along Punjab’s border regions, 5,000 home guards will be deployed alongside the Border Security Force (BSF).

“This is the first time such a measure is being taken to strengthen border security at the state level,” Cheema stated. The move aims to prevent illegal cross-border activities, including drug smuggling and infiltration.

₹9,992 Crore for Agricultural Power Subsidy and Crop Diversification

New Initiatives to Address Farming Challenges

Punjab’s agriculture sector received ₹9,992 crore in subsidies to support farmers, particularly in power supply for irrigation.

To promote crop diversification, a new scheme for Kharif maize cultivation has been introduced in three districts—Bathinda, Kapurthala, and Gurdaspur.

Additionally, to tackle stubble burning, which has become a national environmental issue, the Punjab government reaffirmed its commitment to finding sustainable solutions.

“We are actively working on measures to curb stubble burning and ensure environmental sustainability,” Cheema said.

Boost to Rural Development with ‘Rangla Punjab Vikas Scheme’

MLAs and Community Groups to Decide Local Projects

A new initiative, ‘Rangla Punjab Vikas Scheme’, has been launched to fund grassroots-level development projects in Punjab’s districts.

  • The scheme will allocate funds for essential infrastructure projects at the local level.

  • Deputy Commissioners will oversee fund distribution based on recommendations from MLAs, community organizations, and local citizen groups.

“The aim is to empower local communities and address their most pressing development needs,” Cheema noted.

Punjab’s Economy on a Strong Growth Trajectory

9% Growth Rate Reported

Punjab’s economy is on a steady growth path, with a 9% growth rate recorded in the current year, according to estimates from the Directorate of Economics and Statistics.

The budget projects:

  • Effective revenue deficit at 2.51%

  • Fiscal deficit at 3.84%

This growth momentum reinforces Punjab’s commitment to economic revival and development-driven governance.

Cost Reduction in Government Service Delivery

Doorstep Services Now Cheaper

In a move to enhance public service accessibility, the cost of doorstep delivery of government services has been slashed from ₹120 to ₹50.

This initiative aims to make essential government services more affordable and efficient for citizens, reducing bureaucratic hurdles and service delays.

Political Undertones: AAP Criticizes Past Governments

Targeting Opponents on Punjab’s Drug Crisis

While unveiling the budget, Cheema took a sharp dig at previous governments, accusing them of plundering the state and failing to tackle Punjab’s drug menace.

“The only legacy these parties left in Punjab was ‘Udta Punjab’,” he said, referring to the drug crisis that has gripped the state for decades.

“We are determined to transform Punjab into ‘Rangla Punjab’—a progressive, inclusive, and opportunity-driven state,” he added, emphasizing AAP’s commitment to change.

The budget’s theme—‘Badalda Punjab’ (Changing Punjab)—reflects the government’s vision for transformation across multiple sectors in FY 2025-26.

Sourabh Sharma

Sourabh loves writing about finance and market news. He has a good understanding of IPOs and enjoys covering the latest updates from the stock market. His goal is to share useful and easy-to-read news that helps readers stay informed.

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Sourabh Sharma

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