Punjab has recorded a historic turnaround in fiscal performance under the leadership of the Aam Aadmi Party (AAP) government, emerging among the top three states in the country for revenue growth, Finance Minister Harpal Singh Cheema announced today. Highlighting the state’s robust own-tax revenue, Cheema said, Punjab’s own tax collection has surged from Rs 37,327 crore in 2021-22 (6.39% of GSDP) to Rs 57,919 crore in 2024-25, accounting for 7.15 per cent of GSDP.
Excise and GST collections have witnessed unprecedented growth. Excise revenue jumped 86.77 per cent, with the AAP government collecting Rs 37,975 crore in just four years—surpassing the five-year totals of both the SAD-BJP and Congress regimes. Cheema added, “Excise revenue, which was Rs 6,157 crore in 2021-22, is projected to reach Rs 11,500 crore in 2025-26.”
Massive jump in Punjab’s GST collection
Minister Cheema said GST revenue of the state also achieved remarkable gains. He said the previous Congress administration collected Rs 61,286 crore over five years, averaging Rs 12,257 crore annually. Under the AAP, Rs 83,739 crore has already been collected up to January 2026, pushing the annual average to Rs 21,845 crore, with state GST projected to surpass Rs 26,500 crore in 2025-26—a 70.50 per cent growth since 2021-22.
Stamp duty collections swells
Stamp duty collections surged similarly, with the AAP government generating Rs 19,515 crore by January 2026, a 60 per cent increase over the previous five-year periods of Congress and SAD-BJP, Cheema said. Annual averages have more than doubled previous benchmarks, indicating continued growth into 2026-27.
Cheema said the Punjab Government managed to reduce the debt-to-GSDP ratio despite inheriting a massive Rs 3,00,000 crore legacy debt.
“We have reduced the debt-to-GSDP ratio from 48.25 per cent to 44.47 per cent while allocating Rs 7,000–Rs 8,000 crore for implementing the Pay Commission and clearing Rs 14,191 crore in pending arrears. Strategic investments in the Consolidated Sinking Fund and Guarantee Redemption Fund have increased reserves from Rs 3,027 crore in 2022 to Rs 11,720 crore by December 2025—a 287 per cent growth in under four years.”
He said the government has also maintained development spending momentum, with capital expenditure set at Rs 31,630 crore—far surpassing previous administrations—and provided Rs 2,566 crore to revive financially distressed state entities like PUNSUP, Land Mortgage Bank, PSIDC, and the Mandi Board.
Cheema claims reduction in central support
Punjab Finance Minister said these achievements come despite a 62 per cent reduction in central support, with Revenue Deficit grants and GST compensation totaling only Rs 27,832 crore under the AAP, compared to Rs 72,340 crore under the Congress regime.
Cheema concluded by underscoring administrative and digital reforms enhancing transparency and efficiency, including the ‘Pension Seva Portal’, ‘e-Deposit Management System’, and incentives exceeding Rs 800 crore through the SNA-SPARSH initiative.
