Punjab Excise Revenue to Hit ₹12,800 Crore in 2026-27 – Boosting Schools, Hospitals & Welfare Schemes
-From ₹2,755 Crore (SAD-BJP Era) to ₹11,200 Crore in 2025-26 – Excise Reforms Transform Punjab’s Revenue Landscape
-New Excise Policy Emphasizes Transparency, Ease of Doing Business & Strict Crackdown on Illicit Liquor: cheema
-Zero Tolerance on Smuggling: Over 4,400 FIRs, 26,000 Raids Conducted
Chandigarh, February 23, 2026: Punjab Finance, Planning, Excise & Taxation Minister Harpal Singh Cheema on Monday projected excise revenue of ₹12,800 crore for the financial year 2026-27, asserting that the state’s excise reforms have not only rewritten Punjab’s revenue story but are now directly powering public welfare through funding for schools, hospitals, and other citizen-centric schemes.
Unveiling the new Excise Policy at a press conference in Punjab Bhawan (alongside Excise & Taxation Commissioner Jitendra Jorwal), Minister Cheema said the Mann government has decisively moved away from the stagnation seen under previous Congress and SAD-BJP regimes, turning excise into a transparent, enforcement-driven and high-growth sector that delivers record collections while cracking down hard on illicit trade.
Presenting a comparative analysis, he stated: “Under the SAD-BJP government in 2011-12, excise revenue was a modest ₹2,755 crore. Growth remained sluggish, reaching only ₹6,255 crore during the Congress regime in 2021-22. But after the Bhagwant Singh Mann government implemented a robust policy in 2022-23, revenue jumped sharply to ₹8,428 crore. This momentum has continued – ₹10,744 crore in 2024-25 and the current target of ₹11,200 crore for 2025-26.”
Key highlights of the new Excise Policy for 2026-27 include:
- Renewal of existing retail licenses at a modest 6.5% increase over 2025-26 fees.
- Non-renewed groups to be allotted through transparent e-tender process.
- Quota for Punjab Medium Liquor (50° & 65°) increased by 3% to 8.79 crore Proof Litres to meet demand while regulating supply.
- Introduction of 40° PML sub-vends in high-crime zones to combat illicit liquor sales.
- Auto-approval for brand price increases up to 4% under EDP & EBP to reduce bureaucratic delays.
- Extension of operating & dispatch hours for distilleries to improve logistics efficiency.
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In a major step towards industrial self-reliance, Minister Cheema announced that Punjab will now establish its own Malt Manufacturing Units. He explained: “This marks a strategic shift from a bottling-centric economy to a high-value manufacturing hub. By domesticating the full production cycle—from barley processing to premium malt distillation—Punjab will eliminate dependence on external suppliers, produce superior homegrown spirits, create a farm-to-factory ecosystem, generate specialised jobs, retain capital within the state, and strengthen Punjab’s position in high-end industrial distillation.”
On enforcement, he underlined the government’s zero-tolerance policy against liquor smuggling from neighbouring states and Chandigarh: “Law enforcement has been aggressive – 4,406 FIRs registered, 4,324 arrests made, 26,218 raids conducted, and 24,832 checkpoints established. This led to seizure of 455 vehicles, 1,76,552 bottles of liquor, destruction of 3,823,576 litres of Lahan, confiscation of 82,990 litres of Ethanol & ENA, 66,794 litres of illicit liquor, and dismantling of 374 working stills.”
Minister Cheema concluded by reaffirming that the excise reforms are delivering not just record revenue but also tangible public good—directly funding education, healthcare, and welfare schemes that benefit every Punjabi.
