Punjab Budget 2025: No New Taxes, Big Push for Health & War Against Drugs

Punjab Budget 2025: Punjab Finance Minister Harpal Singh Cheema unveiled a ₹2.36 lakh crore budget for the financial year 2025-26 on Wednesday, with a sharp focus on tackling the state’s drug menace, boosting healthcare, and strengthening fiscal discipline. The budget, presented in the Punjab Assembly, promises no new taxes but remains silent on the Aam Aadmi Party’s (AAP) pre-election promise of a ₹1,000 monthly honorarium for women.

Punjab Budget 2025: War Against Drugs

One of the most ambitious announcements was the first-ever “Drug Census“, a ground-level survey to assess drug prevalence, usage of de-addiction centres, and the socio-economic impact of substance abuse in Punjab. The data will be used to formulate a scientific and result-oriented strategy to combat drug addiction.

“Our government is committed to fighting this battle against drugs. The ‘Yudh Nasheyan Virudh’ campaign will intensify, and the drug census will ensure no household is left out in our fight against this menace,” said Cheema.

Big Boost to Healthcare

Punjab Budget 2025 earmarked ₹5,598 crore for the health sector, with a significant announcement—Sehat Cards for all Punjab residents. These will enable cashless treatment of up to ₹10 lakh at both government and private hospitals. The initiative expands the previous health insurance coverage, which only benefited 45 lakh families, to all 65 lakh families in Punjab.

To further strengthen emergency response services, the government will procure 758 four-wheelers and 916 two-wheelers for swift medical and disaster response.

Financial Snapshot: Revenue, Debt & Expenditure

• Revenue Receipts: Projected at ₹1,11,740 crore
• ₹63,250 crore from own tax revenue
• ₹25,703 crore as share from central taxes
• ₹10,576 crore as grant-in-aid from Centre
• Debt Management: Punjab will raise a fresh loan of ₹49,900 crore, pushing the state’s total outstanding debt to ₹3.96 lakh crore by next fiscal.
• Key Expenditures:
• ₹36,427.90 crore for salaries
• ₹20,750.11 crore for pensions
• ₹24,995.49 crore for interest on loans

Education & Social Welfare: Key Priorities

Education received a ₹17,975 crore allocation—12% of the total budget—focusing on school infrastructure, teacher training, and installing solar panels in schools to promote sustainability.

For social security, the government earmarked ₹6,176 crore for pensions to the elderly, widows, differently-abled, and destitute women and children. Additionally, ₹450 crore has been set aside to continue free bus travel for women.

Industry, Agriculture & Rural Development

With the share of industry in Punjab’s economy rising to 27%, the budget introduced new financial incentives worth ₹250 crore. The state will also set up Technology Extension Centres in Amritsar, Hoshiarpur, Jalandhar, Moga, Patiala, and Mohali to boost industrial growth.

In agriculture, ₹14,524 crore was allocated, with ₹9,992 crore going towards free power to farmers. Additionally, ₹500 crore was set aside for Crop Residue Management to curb stubble burning.

The ‘Badalde Pind Badalda Punjab’ initiative received ₹3,500 crore to upgrade rural infrastructure, including village ponds, sewerage treatment plants, irrigation channels, playgrounds, and streetlights.

Urban Development & Tourism

For urban areas, ₹5,983 crore has been allocated for cleanliness, sewage, water supply, and roads across 166 towns and cities. A Unity Mall is set to be built in Amritsar for artisans across the country, with ₹80 crore allocated for the project.

Meanwhile, ₹10 crore has been allocated to upgrade Nangal as a tourism hub, and ₹54 crore will be used to develop a heritage street and auditorium in Nawanshahr.

A Budget of Promises, But Questions Remain

While the budget offers significant allocations in health, education, and social welfare, the missing ₹1,000 monthly grant for women—a key AAP election promise—has drawn criticism. The government’s increasing debt burden also raises concerns about long-term financial sustainability.

As Punjab moves into the next fiscal year, all eyes will be on how effectively these budget allocations translate into real change on the ground. Will the “war against drugs” yield results? Can Punjab sustain its fiscal health while delivering on welfare promises? The coming months will provide answers.