Punjab Finance Minister Harpal Singh Cheema presented the state’s budget for the financial year 2025-26 on Wednesday, outlining an expenditure plan of ₹2.36 lakh crore. He highlighted Punjab’s robust economic growth, fiscal targets, and key initiatives to combat drug-related issues.
Economic Growth and Fiscal Outlook
According to Cheema, Punjab’s economy is on a strong upward trajectory, recording a 9% growth rate this year. He cited data from the Directorate of Statistics, stating that the Gross State Domestic Product (GSDP) at current prices has risen to ₹8,09,538 crore. The momentum is expected to continue into the next financial year, with GSDP projected to grow by 10% to ₹8,91,301 crore.
The state has set its fiscal targets with an expected effective revenue deficit of 2.51% and a fiscal deficit of 3.84%. Additionally, Punjab aims to generate ₹27,650 crore in Goods and Services Tax (GST) revenue for the upcoming year.
First-Ever Drug Census and Strengthening Border Security
A major highlight of the budget is Punjab’s first-ever drug census, which aims to assess the extent of drug usage and the effectiveness of de-addiction centers. This comprehensive survey will collect household-level data, including socio-economic indicators, to formulate an evidence-based strategy for tackling the drug menace. The government has allocated ₹150 crore for this initiative, with a goal to eliminate the problem within the next one to two years.
In response to concerns over cross-border drug smuggling, Punjab is introducing new security measures. Cheema emphasized that although the Border Security Force (BSF) oversees a 50km stretch along the border, the state government is stepping up its efforts by deploying 5,000 home guards to work alongside the BSF. “For the first time in Punjab’s history, the state government will establish a second line of defence at the border by deploying 5,000 home guards alongside the BSF. These home guards will be selected from the most determined Punjabi youth, who will act as the eagle eyes protecting the future of Punjab,” he stated.
The government is also investing in cutting-edge anti-drone technology to neutralize sophisticated drones used for smuggling contraband. A pilot program is already underway, and a budget of ₹110 crore has been earmarked to implement these security measures next year.
With a focus on economic resilience, fiscal discipline, and public safety, Punjab’s 2025-26 budget reflects a strategic approach to governance, aiming for long-term growth and social stability.
