PAPER ID:IJIM/Vol. 10 (VI) October/11-17/3

AUTHOR:  Amandeep Singh ^[i] Dr. Gagandeep Kaur^[ii]

TITLE : FISCAL PATHWAYS AND POLICY PRIORITIES: AN ANALYTICAL STUDY OF THE PUNJAB BUDGET 2025–26

ABSTRACT: The Punjab Budget 2025–26, presented on March 26, 2025, by Finance Minister Harpal Singh Cheema, reflects the state government’s vision of achieving fiscal consolidation, socio-economic development, and welfare-driven governance. The total budget outlay for FY 2025–26 is Rs. 2,36,080 crore, marking a 5 per cent increase over the revised estimates of 2024–25. The fiscal deficit is targeted at Rs. 34,201 crore (3.8 per cent of GSDP), showing an improvement from 4.5 per cent in the previous year, while the revenue deficit is projected at Rs. 23,957 crore (2.7 per cent of GSDP). The Gross State Domestic Product (GSDP) is expected to grow by 10 per cent, reaching Rs. 8,91,301 crore, indicating strong economic momentum driven by key reforms and investment. The budget examines sector-wise allocations, emphasizing education, health, agriculture, and rural development. Moreover, education, sports, arts, and culture receives Rs. 19,110 crore (12 per cent increase), while the agriculture and allied activities sector is allocated Rs. 14,407 crore (2 per cent increase) to support farmers and promote crop diversification. Health and family welfare is strengthened with Rs. 6,660 crore, a 14 per cent rise, ensuring universal coverage under the ‘Mukh Mantri Sarbat Sehat Bima Yojana’. Rural development receives Rs. 1,896 crore (26 per cent increase), highlighting efforts to improve connectivity and livelihood opportunities. Revenue receipts are projected at Rs. 1,11,740  crore, with the state’s own tax revenue contributing Rs. 63,250 crore (9 per cent increase), central taxes Rs. 25,704 crore (11 per cent increase), and grants-in-aid from the Centre totaling Rs. 10,576 crore. State GST collections are expected to rise to Rs. 27,650 crore (10 per cent growth), while state excise and stamp duty are projected at Rs. 11,200 crore (8 per cent growth) and Rs. 7,000 crore (13 per cent growth), respectively. The Punjab budget 2025-26 further examines developmental initiatives such as the allocation of Rs. 500 crore for crop residue management, Rs. 150 crore for Punjab’s first ‘Drug Census’, Rs. 233 crore for police modernization, and Rs. 5,983 crore for housing and urban local area development. These measures reflect the government’s dual focus on economic growth and social welfare. The study highlights the fiscal pathways adopted by the Punjab government and examines the policy priorities embedded in expenditure allocations, revenue mobilization strategies, and sectoral interventions, providing a comprehensive insight into the state’s financial planning and governance objectives for FY 2025–26.

KEYWORDS : –Fiscal Deficit, Punjab Budget, Sectoral Expenditure, Social Welfare, Policy Priorities.

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