Panjab Gets USD 28B Budget, Marks Funds for Women

Panjab Finance Minister Harpal Cheema claimed the Aam Aadmi Party (AAP)-led government has brought down the Debt-to-Gross State Domestic Product (GSDP) ratio by 4% in the last 4 years. He said, 'By servicing that debt, we have returned 35% of the principal amount and 50% of interest. Of the borrowings we took, 85% was spent on servicing the old debt.' Panjab's effective outstanding debt for 2026–27 stands at USD 48B, up from the revised estimate of USD 43B in 2025–26; the effective outstanding Debt-to-GSDP ratio for 2026–27 is estimated at 45.1%. During the Budget Session in the state Legislative Assembly, on 8 Mar, Cheema presented the budget with a total outlay of USD 28B. He further announced the fulfilment of a key electoral promise providing USD 10.8 per month to all women and USD 16 per month to Scheduled Caste women. He stated that the amount will be transferred to the bank accounts of all women under a new scheme titled Mukh Mantri Mawan Dhian Satikar Yojana (Chief Minister's scheme for adult women). To which state Leader of the Opposition Partap Singh Bajwa remarked, 'After four years of silence, they suddenly remembered their promise to women. This is not governance. This is election season politics.' Shiromani Akali Dal president Sukhbir Singh Badal asked, 'Why only USD 1.1B were earmarked for the scheme when the outlay for women should have been more than USD 5.5B? The AAP government has defrauded women on International Women’s Day.' According to the Economic Survey of Punjab 2025–26 tabled in the Legislative Assembly, the state's growth rate has remained below the national average since 2013–14. From 2013–23, services accounted for an average annual share of 46% of the state's Gross State Value Added (GVSA), agriculture and allied activities continue to hold 22.8% of GSVA. The industrial sector is expected to account for 29% of GSVA. A major worry for the Panjab government is the rising burden on the state exchequer on account of salaries, interest payments, and pensions, and retirement benefits. These committed liabilities are estimated to consume approximately 72% of its revenue receipts (earlier coverage).