Punjab Budget 2026-27: Industrial policy welcomed, freebies questioned in Budget reactions
Kulwant Singh, a retired principal, has said that only two weeks after the Supreme Court raised serious concerns over the growing culture of freebies in the states for political interests, the Aam Aadmi Party-led state government has paid no heed to the warning.
He cautioned that freebies could hamper economic development and strain finances that are required to create employment opportunities for the unemployed youth of the state. According to him, unemployed youth often end up indulging in drugs and anti-social activities.
At the same time, he pointed out that there has been no move to fill a large number of teaching posts lying vacant in government schools, particularly in rural areas. Similarly, many hospitals in the district are in need of qualified doctors and paramedical staff. Several other government departments, including the PWD, Irrigation Department and Languages Department, are also grappling with staff shortages. On the other hand, thousands of qualified and skilled youth are eagerly waiting for appointments.
Members of the NGO, Amritsar Vikas Manch, lamented that out of the total Budget of Rs 2,60,437 crore, Amritsar has not been granted funds to purchase 30 acres of land for the establishment of a Central Horticulture University, the “Post Graduate Institute of Horticulture Research and Education”, along with the construction of a District Sports Complex and an exhibition and convention centre.
They added that the infrastructure at Heritage Street leading to the Golden Temple requires urgent overhauling, but not a single penny has been allocated for the purpose, even though Amritsar has been declared a holy city.
The members also expressed disappointment that nothing has been announced regarding the resumption of the Metro bus service (BRTS), despite the fact that more than 50,000 locals benefited from the service prior to July 2023.
However, AVM members appreciated the earmarking of Rs 12,597 crore for carrying out road repairs and maintenance for the next five years.
Satya Pal Gupta, a Punjab Government pensioner, said the Budget has disappointed lakhs of pensioners in the state. He pointed out that there was no allocation to pay the remaining 16 per cent of dearness allowance to Punjab Government employees and pensioners.
Gunbir Singh, former chair of CII Punjab, said the nuanced and industry-specific approach of the Budget was innovative and need-based enough to yield results. He added that lowering the caps on employment and investment opens the doors for MSME investments and marks a sharp shift away from the earlier focus on mega projects.
“This is laudable as MSMEs are the backbone of industrious India. An additional 25 per cent incentive for border regions may prove transformative for the stagnating economies along the long Radcliffe Line and addresses a long-standing demand of these regions of Punjab. Overall, it is a thoughtful step towards industrial resurgence,” he said.
Meanwhile, the Shiromani Akali Dal (SAD) vice-president and party’s Khadoor Sahib constituency in-charge, former MLA Ravinder Singh Brahmpura, has launched a legal and economic critique of the Punjab Government’s 2026-27 Budget.
Presenting a legal argument against the government’s announcement of providing Rs 1,000 per month to women and Rs 1,500 to women belonging to the Scheduled Caste category, Brahmpura said this was a “contract” made with the public in 2022.
“The government has violated this contract for four full years. Legally and morally, the government now owes arrears of Rs 48,000 to every woman in Punjab. Implementing it in the final year of its tenure is akin to giving ‘alms’ to the daughters and sisters of Punjab, whereas, in reality, the government has withheld their rightful dues,” he added.
Criticising the Budget allocation of Rs 9,300 crore for the ‘Mukhyamantri Mawan Dhiyan Satkar Yojana’ and Rs 900 crore for free ration under the ‘Meri Rasoi’ scheme, the SAD leader questioned the government’s sources of revenue.
He said that without increasing income, burdening Punjab with an additional debt of Rs 10,000 crore merely to garner votes would amount to an “economic crime” against future generations. Punjab is already reeling under lakhs of crores of debt, and such announcements could push the state towards financial distress, he cautioned.
He concluded by saying that the prudent voters of Punjab understand such political manoeuvres and will give their verdict in the upcoming 2027 elections.
