Punjab: State budget on March 8, government may announce Rs 1,000 stipend for women
Punjab: Chief Minister Bhagwant Mann announced on Saturday that his government will present the state budget on March 8—International Women’s Day. Mann, who was on a visit to Ahmedabad, Gujarat, said his government would not impose any new taxes. This is the first time the state budget will be presented on a Sunday, with the Assembly session beginning on March 6. Sources indicate that increased spending is expected on health, education, and rural development, as this will also be the current Mann government’s last budget. Elections are due in the state early next year. He stated that the total budget expenditure is expected to increase by at least 5% as the ruling AAP will try to woo different sections of society. The AAP government presented a budget of ₹2.36 lakh crore for 2025-26. Since capital expenditure has been low in the past four years, the state government is expected to increase spending on infrastructure development. Additionally, despite the 16th Finance Commission’s advice to curb funding, the AAP government is expected to pat itself on the back for continuing free electricity for agriculture and introducing universal health cover last month. Official sources in the state finance department said that unlike Himachal Pradesh, the commission’s decision to not provide revenue deficit grants would have little impact on Punjab. They said this was because the state was receiving a larger share of horizontal devolution (the distribution of central taxes among states, which would yield an additional ₹5,000 crore annually between 2026 and 2031). A senior official said, “If the state government loses ₹25,968 crore as revenue deficit grant, the horizontal distribution has increased from 1.807% to 1.996%. With the increase in the tax pool, Punjab will receive ₹25,000 crore over the next five years.” “The Special Central Grant for Local Bodies and Disaster Management (Rs 19,623 crore) will help the state compensate for these losses,” the official added.
