Chandigarh, March 3,
The Aam Aadmi Party (AAP) government in Punjab has achieved significant fiscal improvements, ranking the state among the top three in India for revenue growth. Punjab Finance, Excise, and Taxation Minister Harpal Singh Cheema highlighted these accomplishments during a press conference in Chandigarh on March 3, 2026, attributing the progress to structural reforms, fiscal discipline, and greater transparency.
Key highlights from the minister’s address include:
- Own Tax Revenue Surge: Punjab’s own tax collections rose from ₹37,327 crore (6.39% of GSDP) in 2021-22 to ₹57,919 crore (7.15% of GSDP) in 2024-25, reflecting strong growth in state-generated revenue.
- Excise Revenue Boom: Excise collections under AAP have increased by 86.77% in under four years. The government collected ₹37,975 crore up to January 2026, with an annual average of ₹9,907 crore—nearly double the averages under previous regimes (SAD-BJP: ₹4,109 crore annually over five years; Congress: ₹5,479 crore annually over five years). Excise revenue is projected to reach ₹11,500 crore in 2025-26, up from ₹6,157 crore in 2021-22, and its share of GSDP grew from 1.05% to 1.28%.
- GST Performance: Despite a 62% drop in central grants and GST compensation compared to the Congress era (which received ₹72,340 crore in such support over five years, versus AAP’s ₹27,832 crore up to January 2026), state GST collections reached ₹83,739 crore under AAP (annual average ₹21,845 crore), far exceeding the Congress five-year total of ₹61,286 crore (annual average ₹12,257 crore). State GST is expected to surpass ₹26,500 crore in 2025-26, with a 70.50% growth recorded despite GST rationalization.
- Stamp Duty Gains: Stamp duty collections under AAP totaled ₹19,515 crore by January 2026 (annual average ₹5,091 crore), a 60% increase over the five-year totals of previous governments (SAD-BJP: ₹12,387 crore; Congress: ₹12,469 crore). This pace suggests the AAP era could double the Congress total by 2026-27.
- Debt Management: The government inherited a legacy debt of about ₹3,00,000 crore, with roughly 85% of new borrowings used to service old liabilities and interest (leaving less than 15% for new initiatives). Despite this, the debt-to-GSDP ratio declined from 48.25% to 44.47%.
- Capital Expenditure and Other Measures: AAP is set to spend ₹31,630 crore on capital expenditure, compared to ₹14,641 crore (SAD-BJP) and ₹19,356 crore (Congress) over their respective five-year terms. The government also cleared Pay Commission arrears, bailed out distressed entities (₹2,566 crore), settled central scheme dues (₹1,750 crore), and boosted reserves in the Consolidated Sinking Fund and Guarantee Redemption Fund from ₹3,027 crore to ₹11,720 crore (a 287% increase).
Cheema emphasized digital reforms, such as the Pension Seva Portal and e-Deposit Management System, which enhanced transparency and earned over ₹800 crore in incentives via the SNA-SPARSH initiative.
These figures, as presented by the minister, underscore a turnaround in Punjab’s fiscal health amid reduced central support, with revenues now funding development and welfare priorities more effectively.
