The government of Punjab presented a ₹2,60,437 crore Budget for the financial year 2026–27 in the state Assembly, highlighting major welfare initiatives for women, farmers, education and healthcare.
Presenting the fifth Budget of the Aam Aadmi Party government, Finance Minister Harpal Singh Cheema said the administration has delivered on its promises and will continue focusing on welfare and economic development.
The Budget is politically significant as it is the final financial plan of the government led by Chief Minister Bhagwant Mann before the state heads for Assembly elections expected in early 2027.
According to Cheema, Punjab’s economy has shown stability and resilience, with the Gross State Domestic Product projected to reach ₹9,80,635 crore in 2026–27 and an expected growth rate of around 10 percent.
₹1,000 to ₹1,500 Monthly Aid for Women
One of the biggest announcements in the Budget is a welfare scheme aimed at supporting women across the state.
Under the Chief Minister Mawan Dhiyaan Satkar Yojana, the government will transfer ₹1,000 every month directly to the bank accounts of adult women in Punjab, while women belonging to Scheduled Caste communities will receive ₹1,500 per month.
The scheme is designed to provide financial support and strengthen the economic independence of women in the state.
Announcing the initiative on the occasion of International Women’s Day, the Finance Minister said the Budget is dedicated to the mothers and daughters of Punjab.
What Is the ₹1,000 Monthly Aid Scheme for Women in Punjab?
The Chief Minister Mawan Dhiyaan Satkar Yojana will provide direct financial assistance to adult women in Punjab through monthly bank transfers. The scheme aims to empower women financially and support household stability, especially for economically weaker families.
Education Sector Receives Major Boost
The Budget also allocates ₹19,279 crore for the education sector, marking a 7 percent increase compared with the previous year.
Under the Sikhiya Kranti 2.0 initiative, the government plans to invest ₹3,500 crore over the next six years to improve school infrastructure and learning facilities.
Another key announcement is the establishment of a world-class university named after Guru Tegh Bahadur at Sri Anandpur Sahib.
The state also plans to expand skill development by increasing seats in Industrial Training Institutes from 35,000 to 52,000. ITI courses have also been introduced in 11 prisons to provide vocational training and rehabilitation opportunities for inmates.
Healthcare Funding Expanded With New Clinics
The health sector will receive ₹6,879 crore in the upcoming financial year to expand healthcare services across the state.
The government has allocated ₹2,000 crore for the Mukh Mantri Sehat Yojna, which provides cashless treatment of up to ₹10 lakh per family annually and is expected to benefit around 65 lakh families through more than 900 hospitals.
Punjab will also expand its network of Aam Aadmi Clinics. Currently, 881 clinics are operating across the state and have recorded nearly five crore outpatient visits.
Under the new Budget, 143 additional clinics will be opened and 308 health centres will be upgraded, with a long-term plan to establish 1,432 clinics over the next five years.
Farmers and Agriculture Get Major Budget Support
The Budget proposes ₹15,377 crore for agriculture and allied sectors to support farmers and promote sustainable farming.
A major portion of this allocation, ₹7,715 crore, will go towards electricity subsidies for the agricultural sector.
The government will also invest ₹600 crore in crop residue management equipment to address the issue of stubble burning. Farmers will receive a 33 percent subsidy on cotton seeds and ₹1,500 per acre support for direct-seeded rice cultivation.
Additionally, up to 80 percent subsidy will be offered on machinery used for crop residue management.
How Does the Punjab Budget Support Farmers and Healthcare?
The Budget allocates significant funding for agriculture subsidies, crop diversification initiatives and equipment to manage stubble burning. At the same time, healthcare spending will increase through expanded insurance coverage and a larger network of clinics providing affordable treatment.
New Push for Crop Diversification and Horticulture
The government also introduced a new initiative to promote maize cultivation as part of its crop diversification strategy.
A large horticulture project worth ₹1,300 crore has been proposed to expand the area under fruits and vegetables from the current 4.59 lakh hectares to 17.34 lakh hectares by 2035.
Officials say the initiative is aimed at increasing farmers’ incomes while reducing dependence on traditional crops such as wheat and paddy.
What Are the Major Highlights of Punjab Budget 2026?
Key highlights include a ₹1,000 monthly financial assistance scheme for women, increased funding for education and healthcare, expanded Aam Aadmi Clinics, and major support for agriculture and crop diversification.
With a strong focus on welfare programmes and economic growth, the Budget aims to address social development while preparing the state for the upcoming 2027 Assembly elections.
