Union Budget 2026: Punjab Eyes Special Economic Package Amid Election Year Hopes for Big Gifts

Published on: 01 Feb 2026 at 09:53 AM

Published by: Gill Bikram

Union Budget 2026: Punjab Eyes Special Economic Package Amid Election Year Hopes for Big Gifts

Ludhiana/Chandigarh, February 1, 2026: Finance Minister Nirmala Sitharaman will present the 2026-27 Union Budget today. With Punjab Assembly elections slated for 2027, the state harbors high expectations from this budget. The Punjab government, led by Chief Minister Bhagwant Mann, has demanded a special economic package from the Centre to recover from the “double blow” of natural disasters and border tensions.

Key Demands from Punjab Government
Finance Minister Harpal Singh Cheema outlined these priorities in a memorandum to the Union Finance Ministry:

Compensation for Natural Disasters: In 2025, devastating floods affected 2,300 villages, causing ₹12,905 crore in losses. The state seeks special aid for recovery.
Release of Pending Funds: Immediate disbursement of ₹7,757 crore in Rural Development Fund (RDF) arrears to upgrade rural infrastructure.
Agriculture and Water Conservation: Increase crop diversification incentives (away from paddy) to ₹15,000 per acre.
Police Modernization: ₹1,000 crore package for anti-drone technology to counter cross-border drug and arms smuggling via drones.

What Punjab Got in Last Year’s Budget (2025-26)
The previous budget included key allocations:

₹5,421 crore for railway infrastructure.
Development of 30 railway stations under the Amrit Bharat Station Scheme.
₹203 crore approval for the Mohali-Rajpura rail link project.

Political Significance
With 2027 elections approaching, announcements for Punjab carry major political weight for the BJP-led Centre. The state argues that its financial stability, as a border region, ties directly to national security.