Panjab Turns Revenue Surplus; FM Seeks Share From RBI Surplus Transfer

June

2026

In a first in five years, Panjab turned revenue surplus in April 2026 at USD 295M, as collections jumped to USD 111.9B. Though heavy reliance on debt remains a concern. Furthermore, Panjab Finance Minister Harpal Singh Cheema asked the union government to share the Reserve Bank of India’s (RBI) record surplus transfer with states, saying such receipts should be viewed through the principles of cooperative federalism and fiscal fairness. On 23 May, Cheema raised concerns over the transfer of nearly USD 30.2B from the RBI to the union government for the accounting year 2025–26. He said, ‘If the union government is facing economic pressures due to global uncertainties and supply shocks, the states are facing the same challenges. Extraordinary gains of this nature should be shared with the states in the spirit of cooperative federalism and fiscal fairness.’ Cheema said that states were dealing with the fiscal impact of inflation, higher input costs and welfare commitments, and therefore deserved a share in large non-tax receipts. Meanwhile, the union government has withdrawn the draft Sugarcane (Control) Order, 2026, following feedback and suggestions received from state governments and industry stakeholders. The draft Sugarcane (Control) Order, 2026 is a legal framework issued by the government under the Essential Commodities Act, 1955. It would have granted the union government the power to determine the Minimum Selling Price (MSP) of sugar to maintain domestic market stability. Additionally, the Directorate of Enforcement (ED), Jalandhar, arrested Secretary of the Indian Cooperative House Building Society, Ajay Sehgal, in a case of money laundering related to submission of fake consent letters for fraudulently obtaining Change of Land Use (CLU). The ED has initiated investigation on the basis of a First Information Report filed by Panjab police after receiving a complaint from farmers alleging that their consent was forged to obtain the CLU. The investigation has revealed that Sehgal had prepared fake consent letters on 30 acres of land belonging to 15 landowners. ED is now closely examining the role of several senior bureaucrats, including officials in the Housing and Urban Development Department, the Director, Town and Country Planning, the Chief Town Planner and other functionaries linked to the approval process (earlier coverage).