With about a year to go until elections in the state, the Aam Aadmi Party government in Punjab on Saturday announced a plan to fulfill its promise to provide monthly cash transfers to women. Under this initiative, the Bhagwant Mann-led government will transition $1000 per month for all adult women; For those in the Casted Caste community, it’s set to $1500.
In the budget for the next financial year, which was presented on what happened to be International Women’s Day, Finance Minister Harpal Singh Cheema announced… $Rs 9,300 crore ‘Mukh Mantri Mawan Dhyan Satikar Yojana’ (Prime Minister’s Respect Scheme for Mother and Daughters).
The direct benefit transfer system is designed to be nearly universal, covering about 97% of all adult women in Punjab, the highest coverage of its kind in India. “Every woman in Punjab above the age of 18 will be eligible to enroll under this scheme except only a few, i.e. current or former permanent government employees, current and former Members of Parliament, and income tax payers,” Cheema said.
“Even women registered under existing social security pension schemes – such as old age pension, widow/destitute pension, or disability pension scheme – will be eligible under this scheme,” he added.
Punjab Budget: ‘Salute to mothers and daughters’
Overall, Minister Cheema proposed a total budget expenditure of $2,60,437 crore for the financial year 2026-27, with the proposals framed as a tribute to the ‘mothers and daughters’ of the state.
The budget appears aimed at balancing social welfare spending with fiscal discipline in the run-up to the 2027 House of Representatives elections.
The Minister of Foreign Affairs suggested $18,304 crore for social welfare and justice, the highest ever allocation to the ministry. This includes $360 Crore for Ashirwad Scheme $Rs 261 crore for post-graduation scholarships.
It is worth noting that the proposed energy subsidy has been reduced to $15,550 Crores, compared to $20,500 crore in the 2025-26 budget estimates, following a recent order by the Punjab State Electricity Regulatory Commission.
Infrastructure and rural development
To improve local infrastructure, allocations for the Rangela Punjab Vikas Program have been doubled to $Saving 1,170 Crores $Rs 10 crore for each of the 117 constituencies.
In the rural sector, after upgrading 40,103 km of rural roads, the government aims to complete the remaining 19,876 km at an estimated cost. $7,606 crores.
Agriculture, health and education
Shima announced $15,377 crore for agriculture and allied sectors, incl $Rs 40 crore to promote Direct Seeded Rice (DSR) for groundwater conservation.
In a major boost to health care, Secretary of State $Provision of Rs 2,000 crore for Mukh Mantri Sehat Yojna $10 thousand annual health coverage for each family.
last $Rs 1,220 crore has been allocated specifically for the medical education and research sector.
To commemorate the 350th martyrdom anniversary of Guru Teg Bahadur, the government announced the establishment of a new university at Sri Anandpur Sahib, along with a state-of-the-art trauma center and a hospital dedicated to mother and child care in the holy Sikh city.
In addition, 100 more Aam Aadmi clinics are scheduled to be established.
The education sector received a major boost with spending $19,279 crore, an increase of 7% over the previous year.
Debt burden and growth
While the government is looking to achieve ambitious growth, the fiscal deficit is estimated at 4.08% of GDP, with the actual revenue deficit pegged at 2.06%.
Punjab’s outstanding debts are expected to reach $4,47,754.78 Crores by March 31, 2027, up from $4,07,784.14 crore in the revised estimates for 2025-26.
The GSDP is expected to reach $9,80,635 crore in FY 2026-27, with a growth rate of 10%. The Foreign Minister attributed this momentum to improved agricultural productivity and the recovery of the services sector.
“These estimates reaffirm our resolve to combine responsible fiscal management with sustained support for economic growth,” Cheema noted, citing icons such as cricketer Harmanpreet Kaur as symbols of “strength and aspirations” that the Budget seeks to honour.
Addressing the drug challenge facing the state, the budget also proposed a comprehensive drug and socio-economic survey to begin in April 2026.
