CHANDIGARH, Mar 3: Punjab Finance, Excise, and Taxation Minister Harpal Singh Cheema announced today that the state has secured a position among the top three states in India for revenue growth under the Aam Aadmi Party (AAP) government. Addressing a press conference at Punjab Bhawan, Cheema highlighted that the state’s fiscal health has undergone a decisive transformation characterised by structural reforms, financial discipline, and administrative transparency.
He noted that Punjab’s own tax revenue has seen a significant jump from Rs 37,327 crore (6.39 per cent of GSDP) in 2021-22 to Rs 57,919 crore (7.15 per cent of GSDP) in 2024-25.
Detailing the excise sector’s performance, the Minister revealed a staggering 86.77 per cent growth in revenue in less than four years. Cheema pointed out that while the previous Akali-BJP and Congress regimes collected Rs 20,545 crore and Rs 27,395 crore respectively over their five-year terms, the current government has already amassed Rs 37,975 crore by January 2026.
He projected that excise collections for the 2025-26 fiscal year would reach Rs 11,500 crore, nearly doubling the annual average of previous administrations. Similarly, Goods and Services Tax (GST) collections have surged by 70.50 per cent, with the annual average rising to Rs 21,845 crore compared to the Rs 12,257 crore average during the Congress tenure.
The Finance Minister also drew attention to record-breaking collections in stamp duty and capital expenditure. He stated that the AAP government collected Rs 19,515 crore in stamp duty by January 2026, outperforming the five-year totals of both previous governments by 60 per cent. Furthermore, capital expenditure is set to reach Rs 31,630 crore under the current term, significantly higher than the Rs 14,641 crore spent by the Akali-BJP and Rs 19,356 crore by the Congress.
Cheema emphasised that these milestones were achieved despite a 62 per cent decline in central grants and the cessation of GST compensation.
Addressing the state’s debt, Cheema clarified that despite inheriting a legacy debt of Rs 3,00,000 crore, the government has successfully reduced the debt-to-GSDP ratio from 48.25 per cent to 44.47 per cent. He explained that 85 per cent of new borrowings are currently consumed by interest payments and liabilities left by previous governments, leaving less than 15 per cent for fresh development. Despite these constraints, the government has cleared Rs14,191 crore in Pay Commission arrears and provided Rs 2,566 crore to bail out distressed state entities like PUNSUP and the Mandi Board.
To safeguard against future financial crises, the Minister highlighted a 287 per cent increase in reserve funds kept with the Reserve Bank of India. The Consolidated Sinking Fund and Guarantee Redemption Fund have grown from Rs 3,027 crore in 2022 to Rs 11,720 crore by December 2025.
Cheema credited these successes to digital reforms such as the ‘Pension Seva Portal’ and the ‘e-Deposit Management System,’ which have enhanced transparency and efficiency in the state’s treasury operations. (UNI)
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