Punjab Budget: AAP govt announces monthly aid for women, fulfilling poll promise

The AAP government on Sunday (March 8) announced a new scheme under which eligible women will receive Rs 1,000 or Rs 1,500 a month, fulfilling a poll promise nearly four years later. Providing monthly assistance to women was a key poll promise of the ruling party before the 2022 Punjab assembly polls.

The announcement coincided with International Women's Day.

Finance Minister Harpal Singh Cheema claimed that every promise made to the people of Punjab has been fulfilled as he presented the budget with an allocation of Rs 2,60,437 crore.

Financial assistance to women

Around 97 per cent of all adult women in Punjab will be eligible for this scheme and Rs 9,300 crore has been earmarked for it in the budget 2026-27.

Cheema said existing or past permanent government employees, existing and past MPs/MLAs and income tax payees will not be covered under this scheme.

Also read: A year ahead of Assembly polls, Punjab AAP govt slashes power charges

Under the 'Mukh Mantri Mawan Dhian Satikar Yojana', Rs 1,000 per month will be given to all women except Scheduled Caste women, who will be getting Rs 1,500 per month.

Stating that this new scheme will be not just India's but also the world's first universal cash transfer scheme for women, Cheema said every woman in Punjab above 18 years of age will be eligible to enrol under this scheme.

Speaking to reporters later, Chief Minister Bhagwant Mann said registration under this scheme will start from April 13 - Baisakhi day.

State Budget announcement

It was the last budget of the Mann government in Punjab before it goes to polls early 2027.

In his nearly three-hour long budget speech, Cheema also focussed on the health, education, sports, agriculture and other sectors while hiking allocation. However, the FM did not impose fresh taxes.

According to the budget documents, the state's outstanding debt was projected at Rs 4,47,754.78 crore for FY 2026-27 as against Rs 4,07,784.13 crore for 2025-26 revised estimates.

Before the start of the budget session, the Punjab Vidhan Sabha received a bomb threat email. Following a detailed anti-sabotage checks, nothing suspicious was found, officials said.

Welfare for women

Asserting that this budget is dedicated to mothers and daughters of Punjab - a tribute to their strength and a celebration of their invaluable contribution to the society and future, Cheema said the state government's fifth budget marks a defining moment in its journey of governance.

He described the budget as 'Saari Guarantiyan Puri Karan Wala Budget', emphasizing that the government worked to fulfill all "guarantees" made to people.

Also read: Centre denies political clearance to Punjab CM's foreign trip for the third time

On the new scheme for women, Cheema said the government will transfer Rs 1,000 per month directly to the accounts of all women. For women belonging to the SC community, the government will transfer Rs 1,500 per month directly to their accounts.

Even women enrolled under existing social security pension schemes e.g. old-age pension or widow/destitute women pension or disability pension scheme will be eligible under this scheme, he further said.

The FM also hiked the budget allocation from Rs 585 crore in 2025-26 to Rs 1,170 crore in 2026-27 under the Rangla Punjab Vikas Scheme, aimed to ensure balanced and equitable development across all regions of the state.

Many women visitors, including AAP leaders and workers were present in the visitors' gallery of the Punjab Vidhan Sabha during budget presentation.

Allocation for agriculture

On agriculture front, Cheema proposed allocation of Rs 7,715 crore towards power subsidy for the agriculture sector, besides Rs 600 crore for subsidizing stubble management machinery.

An allocation of Rs 15,377 crore has been earmarked for the agriculture and allied sectors in 2026-27 for supporting the targeted interventions in crop diversification, sustainability, market reforms and farmer welfare, said Cheema.

Health sector

On health front, Cheema proposed Rs 2,000 crore for Mukh Mantri Sehat Yojna' which provides for cashless treatment of up to Rs 10 lakh per family annually. He also announced opening of 143 more Aam Aadmi Clinics in the state next fiscal.

For the health sector, Cheema proposed a budgetary outlay of Rs 6,879 crore in FY27.

Cheema also announced establishment of a World-Class University and a modern trauma centre in the name of Sri Guru Tegh Bahadur Ji at Sri Anandpur Sahib.

Also read: Karnataka CM Siddaramaiah defends state budget, rejects BJP’s debt flak

Noting that education reforms in Punjab have moved from promise to structural transformation, Cheema proposed a budgetary outlay of Rs 19,279 crore for the education sector.

Punjab’s economy

Stating that Punjab's economy has demonstrated steady resilience and structural stability over the past year, Cheema said for 2026-27, gross state domestic product (GSDP) is projected to reach Rs 9,80,635 crore with an anticipated growth rate of 10 per cent.

The effective revenue deficit is estimated at 2.06 per cent of GSDP and the fiscal deficit at 4.08 per cent of GSDP.

To reinforce Punjab's industrial momentum, Rs 2,805 crore has been allocated for the Industries and Commerce sector which includes continued support for subsidized power to industry and Rs 500 crore towards fiscal incentives for various industries to promote investment and employment generation.

The FM also said the government will observe the 650th Parkash Utsav of Guru Ravidas with a Rs 100 crore allocation.

Social welfare schemes

On social welfare, Cheema said the government has introduced the 'Meri Rasoi' scheme with a Rs 900 crore allocation to provide free quarterly essential ration kits to nearly 40 lakh families.

He added that new ration card enrolments will be opened for 10 lakh additional beneficiaries. Employment opportunities will also be generated through the allotment of nearly 7,500 fair price shops, he said.

Also read: Punjab seeks Rs 20,000 crore flood relief package ahead of PM Modi's visit

The FM also said the state has injected Rs 1,000 crore into the Guarantee Redemption Fund and doubled capital expenditure to Rs 18,381 crore for asset creation.

"The debt-to-GSDP ratio has been reduced from 48.25 per cent to 44.47 per cent," Cheema said, adding that the government remains committed to strengthening the financial health of Punjab while investing in infrastructure and public welfare.

(With agency inputs)