Excise Revenue Surges 86.77% Under AAP Govt, Annual Average Nearly Doubles Compared to Previous Regimes: Harpal Singh Cheema
Debt-to-GSDP Ratio Reduced to 44.47% Even While Servicing ₹3,00,000 Crore Legacy Debt: Harpal Singh Cheema
AAP Govt’s Excise Collection of ₹37,975 Crore in Four Years Surpasses Five-Year Totals of Congress and SAD-BJP: Harpal Singh Cheema
Stamp Duty & GST Revenues Under AAP Outpace Congress and SAD-BJP Eras Despite 62% Drop in Central Grants & Compensation: Harpal Singh Cheema
CHANDIGARH, 3rd March 2026:
Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema on Tuesday said that under the leadership of the Aam Aadmi Party (AAP) government, Punjab has emerged among the top three states in the country for remarkable achievements in revenue growth, asserting that the state’s financial performance over the past four years reflects structural reform, fiscal discipline and administrative transparency. Addressing a press conference at Punjab Bhawan, Harpal Singh Cheema presented detailed data to underline what he described as a decisive turnaround in Punjab’s fiscal health.
Addressing a press conference, Finance Minister Harpal Singh Cheema said, “Punjab’s own tax revenue has surged significantly, rising from ₹37,327 crore, which was 6.39% of the Gross State Domestic Product in 2021-22, to an impressive ₹57,919 crore, accounting for 7.15% of the Gross State Domestic Product in 2024-25.”
Presenting figures on excise collections, the Excise and Taxation Minister noted that excise revenue has increased by 86.77% in less than four years. He said, “During the five-year tenure of the SAD-BJP government, total excise collection was ₹20,545 crore with an annual average of ₹4,109 crore. The subsequent Congress government collected ₹27,395 crore over five years, averaging ₹5,479 crore annually. In stark contrast, the AAP government has already amassed ₹37,975 crore up to January 2026, achieving a staggering annual average of ₹9,907 crore. Furthermore, excise revenue in 2021-22 under the Congress regime was ₹6,157 crore, whereas it is expected to reach ₹11,500 crore in the financial year 2025-26. As a percentage of the state’s Gross State Domestic Product, excise revenue has grown from 1.05% in 2021-22 to 1.28% in 2024-25.”
Highlighting performance under the GST (Goods and Services Tax) regime, Minister Harpal Singh Cheema said similar success has been recorded in GST collections. He said, “The previous Congress administration relied heavily on GST compensation and failed to take concrete steps to broaden the tax base. Their five-year total stood at ₹61,286 crore, averaging ₹12,257 crore annually.”
He further stated, “The AAP government, however, has collected ₹83,739 crore up to January 2026, pushing the annual average to ₹21,845 crore. State GST revenue, which was ₹15,542 crore in 2021-22, is projected to surpass ₹26,500 crore in 2025-26. Despite the rationalization under GST 2.0, the state recorded a massive 70.50% growth in its GST revenue.”
Turning to land and property registrations, Minister Harpal Singh Cheema said revenue from stamp duty has also witnessed a historic rise. He said, “During the Congress tenure 2017-22, stamp duty collections saw an increase of less than 1 percent compared to the preceding Akali Dal government 2012-17. The SAD-BJP government collected a total of ₹12,387 crore averaging ₹2,477 crore annually, while the Congress managed only ₹12,469 crore averaging ₹2,494 crore annually.”
He added, “Conversely, the AAP administration has generated ₹19,515 crore by January 2026, with an annual average of ₹5,091 crore. This indicates that in just four years, the AAP government collected 60 percent more stamp duty than the five-year terms of previous governments. At this accelerated pace, the revenue is expected to double the Congress era’s total by the 2026-27 financial year.”
Emphasizing the government’s commitment to development, Harpal Singh Cheema said Punjab has recorded a historic boost in capital expenditure. He said, “Over five years, the SAD-BJP government spent ₹14,641 crore, and the Congress government spent ₹19,356 crore on capital expenditure. The AAP government is going to spend ₹31,630 crore.”
Addressing the inherited debt burden, Minister Harpal Singh Cheema asserted, “The AAP government received a legacy debt of approximately ₹3,00,000 crore. Because of this massive historical burden, 35 percent of all new loans taken are utilized simply to clear the liabilities left by previous governments. Another 50 percent of the debt goes toward paying interest on older loans. Consequently, less than 15 percent of the borrowed funds are actually available for the AAP government to use for the state.”
Despite these constraints, he said the government has reduced the Debt-to-Gross State Domestic Product ratio from 48.25% to 44.47%. Harpal Singh Cheema said, “The AAP government has allocated ₹7,000 to ₹8,000 crore for implementing the Pay Commission and clearing ₹14,191 crore in Pay Commission arrears pending from 2016 to 2021. Furthermore, ₹2,566 crore was spent to bail out financially distressed state entities like PUNSUP, Land Mortgage Bank, PSIDC, and the Mandi Board.”
He further said that the government has paid ₹1,750 crore to clear arrears of central schemes left unpaid by the Congress administration.
Outlining long-term fiscal safeguards, Minister Harpal Singh Cheema said, “The AAP government has made substantial investments in the Consolidated Sinking Fund and Guarantee Redemption Fund maintained with the RBI. As of March 31, 2022, the state had only ₹3,027 crore in the Consolidated Sinking Fund and nothing in the Guarantee Redemption Fund. By December 2025, these reserves have swelled to ₹10,738 crore in the Consolidated Sinking Fund and ₹982 crore in the Guarantee Redemption Fund, bringing the total to ₹11,720 crore.”
He added, “This represents an overall increase of ₹8,693 crore, a staggering 287% growth in less than four years. This proactive investment acts as a buffer against any sudden financial crises and aids in systematically retiring state debt.”
Minister Harpal Singh Cheema stated these improvements were achieved despite a sharp decline in central support. He said, “Between 2017 and 2022, the Congress government received ₹17,740 crore in Revenue Deficit grants and ₹54,600 crore in GST compensation, totaling ₹72,340 crore. In contrast, the current government has received only ₹15,887 crore in Revenue Deficit grants and ₹11,945 crore in GST compensation totaling ₹27,832 crore up to January 2026.”
He added that the present government received 62% less in Revenue Deficit grants and GST compensation compared to the previous government, and these grants have now been completely halted.
Concluding the press conference, Minister Harpal Singh Cheema highlighted digital and administrative reforms aimed at enhancing transparency and efficiency in treasury operations. He said the Finance Department launched the ‘Pension Seva Portal’ to digitize the entire pension distribution system and implemented an ‘e-Deposit Management System’ to tackle banking fraud and enhance transparency. He said, “Additionally, the state achieved a major milestone by receiving over ₹800 crore as an incentive for effectively digitizing schemes through the SNA-SPARSH initiative.”
