CHANDIGARH: Almost four years after assuming office and a year before assembly election, the Bhagwant Mann-led AAP govt on Sunday finally fulfilled its most long-awaited pre-poll guarantee in the 2026-27 budget, as finance minister Harpal Singh Cheema unveiled a monthly financial allowance of Rs 1,000 for eligible adult women – Rs 1,500 for those from Scheduled Caste community.
Timed to coincide with International Women's Day, ‘Mukh Mantri Mawan Dhian Satikar Yojna' was the centrepiece of the budget with a total outlay of Rs 2,60,437 crore, signalling a push to cover the state's women electorate, while simultaneously trying to mend the balance sheet with a projected 10% GSDP growth ahead of the 2027 assembly polls. State govt will transfer the stipend directly in bank accounts of beneficiaries.
No fresh taxes were proposed in the budget estimates.
Titled ‘Saari Guarantiyan Puri Karan Wala Budget', this is AAP govt's fifth budget and marks the first time in the history of Punjab Vidhan Sabha that a budget was presented on a Sunday.
While presenting the proposals, Cheema said that the budget was "dedicated to the mothers and daughters of Punjab," adding that every pre-poll promise made to the people of Punjab had been fulfilled.
Punjab chief minister Bhagwant Mann later said that registration for the welfare scheme will begin on Baisakhi, April 13. An allocation of Rs 9,300 crore has been made for the scheme, with the state govt aiming for coverage of 97% women. Those already receiving social security pensions (old-age, widow, or disability) will also be eligible for this additional benefit. However, income-tax payees, existing or past permanent govt employees, and current and former MPs / MLAs are not eligible.
"This will be the world's first universal cash transfer scheme of this scale for women," Cheema said.
Describing it as a major step towards strengthening women's financial independence, Mann said, "AAP govt's ‘Saari Guarantiyan Puri' budget reflects its commitment to delivering on poll promises while expanding welfare measures such as free bus travel, free power and cashless healthcare to empower women and support households across the state."
Taking at a veiled swipe at BJP-ruled Haryana, which runs Deen Dayal Lado Lakshmi Yojna, Cheema said, "Many states have started the ‘jumla' of announcing similar schemes, but they limit it only to a small section of women, ignoring the vast majority of women who are financially dependent on men for their most basic needs. For example, a neighbouring state announced a similar scheme but limited it only to households with annual income under Rs 1 lakh covering only 20% of all adult women."
He added, "But Punjab will not do such ‘jumlas' as Bhagwant Mann is not the chief minister for 20% women of Punjab, but for all women of Punjab. That is why we have decided to become the first state to ensure all adult women are covered under the scheme. So, whether she is a daughter studying in college needing extra books, a daughter preparing for a govt job needing coaching, or a woman wishing to watch a movie in a cinema hall; or a grandma wishing to buy a new toy for her grand-daughter, now, they won't have to ask for money from anyone."
Cheema made the announcement of the scheme to loud thumping of desks by the treasury benches. Many women visitors, including women AAP functionaries and volunteers, were present to watch the proceedings of the House.
Despite the push for growth, Punjab's absolute debt continues to climb. Total outstanding debt is projected to reach Rs 4,47,754 crore by March 31, 2027, up from the revised estimate of Rs 4,07,784 crore for the current year. The effective revenue deficit is projected at 2.06% of GSDP and fiscal deficit at 4.08%.
The proposed power subsidy was scaled down to Rs 15,550 crore, a significant drop from the Rs 20,500 crore estimated previously. This reduction follows a recent tariff cut by the state regulator, easing govt's reimbursement burden while maintaining 300 units of free domestic power and free agricultural electricity (allocated Rs 7,715 crore).
The budget prioritises human capital, led by an allocation for education at Rs 19,279 crore, a 7% rise over the previous year. Similarly, the healthcare sector received a 23% funding hike, totalling Rs 6,879 crore. This includes Rs 2,000 crore for the Mukhya Mantri Sehat Yojna, providing Rs 10 lakh in annual cashless insurance per family, alongside the establishment of 143 new Aam Aadmi Clinics. Furthermore, the govt earmarked Rs 11,577 crore for internal security, which includes a dedicated Rs 100 crore for a first-of-its-kind socio-economic census on drugs.
Cheema highlighted in his budget speech, "Punjab's economy has demonstrated steady resilience and structural stability over the past year. The GSDP for FY 2025–26 is estimated at ₹8,91,487 crore. For FY 2026–27, GSDP is projected to reach Rs 9,80,635 crore with an anticipated growth rate of 10 percent, supported by improved agricultural productivity, expanding services activity and strengthened industrial momentum."
He added, "Our govt inherited a debt-to-GSDP ratio of 48.2% 51 as on March 31, 2022 and it is down to 44.4% as on Jan 31, 2026, which is a significant drop by any measure."
Cheema also claimed that during previous regimes, capital investment had slowed while liabilities mounted. "We have reversed that approach. Our overall capital expenditure is Rs 32,353 crore in the last four years, which is more than double that of the previous government. We have further increased it this year as well."