Punjab finance, excise and taxation minister Harpal Singh Cheema said in Chandigarh on March 3, 2026 that Punjab has emerged among the top three states in the country in revenue growth under the Aam Aadmi Party government, citing an increase in the state’s own tax revenue and higher collections from excise, GST and stamp duty.
Addressing a press conference at Punjab Bhawan, Cheema said the state’s own tax revenue rose from ₹37,327 crore in 2021-22, which he said was 6.39% of the gross state domestic product, to ₹57,919 crore in 2024-25, which he said was 7.15% of GSDP. He said the performance reflected what he described as structural reforms, fiscal discipline and administrative transparency.
On excise, Cheema said the state’s excise revenue had increased by 86.77% in less than four years. He said the Akali Dal BJP government collected ₹20,545 crore in excise revenue over five years, with an annual average of ₹4,109 crore, while the Congress government collected ₹27,395 crore over five years, averaging ₹5,479 crore annually. By contrast, he said, the current government had collected ₹37,975 crore up to January 2026, with an annual average of ₹9,907 crore.
Cheema said excise revenue stood at ₹6,157 crore in 2021-22 and was projected to reach ₹11,500 crore in 2025-26. He also said excise revenue as a share of GSDP rose from 1.05% in 2021-22 to 1.28% in 2024-25.
On GST, Cheema said the previous Congress government relied heavily on GST compensation and did not expand the tax base. He said total GST receipts during 2017-22 were ₹61,286 crore, averaging ₹12,257 crore annually. He said the current government had collected ₹83,739 crore up to January 2026, with an annual average of ₹21,845 crore, and that state GST revenue was projected to cross ₹26,500 crore in 2025-26 from ₹15,542 crore in 2021-22.
Cheema also cited higher stamp duty collections. He said the Akali Dal BJP government collected ₹12,387 crore over five years and the Congress government collected ₹12,469 crore over five years, while the current government collected ₹19,515 crore up to January 2026, which he said translated into an annual average of ₹5,091 crore.
On expenditure, the minister said Punjab had increased capital spending during the current term. He said capital expenditure was ₹14,641 crore during the Akali Dal BJP term and ₹19,356 crore during the Congress term, while the current government was set to spend ₹31,630 crore.
Cheema said the government inherited a debt of about ₹3 lakh crore and claimed 35% of new borrowings were being used to clear past liabilities, while around 50% went towards interest payments, leaving less than 15% for development expenditure. He said the debt to GSDP ratio declined from 48.25% to 44.47% during the current term.
He also cited allocations for implementing the pay commission, clearance of arrears amounting to ₹14,191 crore for the period 2016 to 2021, and support for financially stressed state institutions. He said the government had also increased its reserves in the consolidated sinking fund and guarantee redemption fund held with the Reserve Bank of India.
Cheema said these measures were taken despite what he described as a sharp fall in central support. He said Punjab received ₹72,340 crore during 2017-22 as revenue deficit grants and GST compensation combined, compared with ₹27,832 crore up to January 2026, and that these grants had now stopped.
Opposition leaders have contested the government’s fiscal narrative in recent weeks. Punjab Congress president Amarinder Singh Raja Warring has claimed the state’s debt has crossed ₹4 lakh crore and has asked the government to spell out funding sources for proposed spending commitments.
Cheema also spoke about administrative measures, including digitisation of pension payments and an electronic deposit management system, and said the state received incentives for digitising schemes under the SNA SPARSH initiative.
