Punjab Revenue Growth Under AAP Government sees own tax collection rise to ₹57,919 crore, excise up 86.77%, GST surge 70.50%, and Debt-to-GSDP ratio reduced to 44.47%, says Finance Minister Harpal Singh Cheema.
Punjab has secured a place among the top three states in the country in terms of revenue performance, Finance, Excise and Taxation Minister Harpal Singh Cheema said on Tuesday. Speaking at a press conference at Punjab Bhawan, Cheema credited the progress to fiscal discipline, structural reforms, and administrative transparency implemented under the leadership of the Aam Aadmi Party government.
Highlighting the Punjab Revenue Growth Under AAP Government, Cheema stated that the state’s own tax revenue has witnessed a substantial rise over the past four years. He informed that own tax revenue increased from ₹37,327 crore in 2021-22, which accounted for 6.39 percent of the Gross State Domestic Product (GSDP), to ₹57,919 crore in 2024-25, contributing 7.15 percent of GSDP. According to him, this growth reflects systematic improvements in tax administration and better compliance mechanisms.
The minister emphasized that excise revenue has recorded an 86.77 percent surge in less than four years. During the five-year tenure of the previous SAD-BJP government, total excise collections stood at ₹20,545 crore, while the subsequent Congress government collected ₹27,395 crore over five years. In contrast, the AAP government has already collected ₹37,975 crore up to January 2026, with the annual average nearly doubling compared to earlier administrations. Excise revenue, which was ₹6,157 crore in 2021-22, is projected to reach ₹11,500 crore in the 2025-26 financial year. As a share of GSDP, excise revenue increased from 1.05 percent to 1.28 percent, further strengthening the Punjab Revenue Growth Under AAP Government narrative.
Cheema also pointed to strong performance in GST collections. He said the previous Congress administration relied heavily on GST compensation and did not adequately expand the tax base. Over five years, Congress collected ₹61,286 crore in GST. In comparison, the AAP government has already collected ₹83,739 crore up to January 2026, significantly raising the annual average. State GST revenue, which was ₹15,542 crore in 2021-22, is expected to cross ₹26,500 crore in 2025-26, marking a 70.50 percent growth despite GST 2.0 rationalization.
Revenue from stamp duty and property registrations has also shown marked improvement. During the 2012-17 SAD-BJP tenure, total stamp duty collections were ₹12,387 crore, and the Congress government collected ₹12,469 crore between 2017-22. However, under the current administration, stamp duty revenue has already reached ₹19,515 crore by January 2026. Cheema asserted that this represents nearly 60 percent higher collection in four years than what earlier governments achieved in five-year terms.
Addressing the inherited financial burden, Cheema said the AAP government received a legacy debt of approximately ₹3,00,000 crore. He explained that 35 percent of new borrowings are used to clear old liabilities and 50 percent goes toward servicing interest payments, leaving less than 15 percent available for developmental activities. Despite these constraints, the government managed to reduce the Debt-to-GSDP ratio from 48.25 percent to 44.47 percent, which he described as a major fiscal achievement under challenging circumstances.
The minister further stated that the government has allocated between ₹7,000 and ₹8,000 crore for implementing the Pay Commission and cleared ₹14,191 crore in pending arrears. Additionally, ₹2,566 crore was spent to support financially distressed state institutions, while ₹1,750 crore was paid to clear arrears of central schemes left pending earlier.
On long-term fiscal safeguards, Cheema noted that the Consolidated Sinking Fund has increased from ₹3,027 crore as of March 31, 2022, to ₹10,738 crore by December 2025. The Guarantee Redemption Fund, which previously had no balance, now holds ₹982 crore. Together, the total reserve has grown to ₹11,720 crore, reflecting a 287 percent increase. He said this proactive financial planning strengthens the state’s ability to manage debt and future uncertainties.
Cheema also highlighted that these achievements have come despite a sharp decline in central assistance. Between 2017 and 2022, the Congress government received ₹72,340 crore in Revenue Deficit grants and GST compensation combined. In contrast, the present government has received ₹27,832 crore up to January 2026, amounting to 62 percent less central support. Even with reduced grants, the Punjab Revenue Growth Under AAP Government has remained strong, he asserted.
Concluding the briefing, the minister spoke about digital reforms introduced to enhance transparency. Initiatives such as the Pension Seva Portal and the e-Deposit Management System have streamlined financial operations and minimized fraud risks. The state also received over ₹800 crore as an incentive for successfully digitizing schemes under the SNA-SPARSH initiative.
Cheema maintained that the Punjab Revenue Growth Under AAP Government demonstrates that disciplined governance, transparency, and structural reforms can revive a state’s financial health even in the face of heavy legacy debt and reduced central funding.
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