CA Sansaar
Punjab’s Own Tax Revenue Climbs to ₹57,919 Crore in FY25; GST, Excise and Stamp Duty Boost Collections
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Punjab has emerged as one of the fastest-growing states in terms of revenue generation, with a sharp rise in its own tax collections during the tenure of the Aam Aadmi Party government. Increased receipts from excise, GST and stamp duty have played a significant role in strengthening the state’s fiscal position, with excise collections alone registering a jump of nearly 86.77%.
Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema said on March 3, 2026 that the state now ranks among the top three in the country for revenue growth. Addressing a press conference in Chandigarh, he credited the improvement to stronger tax administration and higher collections from key sources such as GST, excise duty and stamp duty.
According to Cheema, Punjab’s own tax revenue increased substantially from ₹37,327 crore in 2021–22 to ₹57,919 crore in 2024–25. During the same period, the share of own tax revenue in the Gross State Domestic Product (GSDP) rose from 6.39% to 7.15%, which he attributed to better compliance and administrative reforms.
Excise revenue has been one of the major drivers of the increase. Cheema stated that collections from excise grew by 86.77% within less than four years. Comparing different administrations, he said the Akali Dal–BJP government collected ₹20,545 crore in excise revenue over five years, while the Congress government recorded ₹27,395 crore during its tenure. In contrast, the current government has already collected ₹37,975 crore up to January 2026, reflecting a higher yearly average.
Excise revenue stood at ₹6,157 crore in 2021–22 and is expected to reach around ₹11,500 crore in 2025–26. Its contribution to the GSDP has also improved, rising from 1.05% in 2021–22 to 1.28% in 2024–25.
On GST collections, Cheema highlighted a strong increase during the present government’s term. Punjab collected ₹83,739 crore in GST up to January 2026, compared to ₹61,286 crore during the 2017–22 period. The state GST component is projected to exceed ₹26,500 crore in 2025–26, up from ₹15,542 crore in 2021–22.
Stamp duty receipts have also grown notably. The state collected ₹19,515 crore up to January 2026, compared with about ₹12,400 crore during each of the previous two five-year tenures. The current government’s annual average from stamp duty is estimated at around ₹5,091 crore.
Cheema further said the government has significantly increased capital expenditure to support infrastructure development and economic growth. Capital spending during the Akali Dal–BJP government was ₹14,641 crore, while the Congress administration spent ₹19,356 crore. The current government plans capital expenditure of ₹31,630 crore.
Addressing concerns over debt, Cheema stated that the government inherited liabilities of nearly ₹3 lakh crore and said much of the new borrowing is being used to repay earlier debt and interest commitments. He added that the debt-to-GSDP ratio has declined from 48.25% to 44.47% during the present term.
The minister also highlighted steps taken by the government to implement pay commission recommendations, clear arrears and provide financial support to financially stressed state-run institutions. In addition, Punjab has strengthened its financial buffers by increasing reserves in the consolidated sinking fund and the guarantee redemption fund maintained with the Reserve Bank of India.
Cheema noted that the state’s fiscal management has become more challenging due to reduced central assistance. He said Punjab received ₹72,340 crore between 2017 and 2022 through revenue deficit grants and GST compensation, whereas only ₹27,832 crore was received up to January 2026, after which such grants were discontinued.
However, opposition leaders have raised concerns about the state’s rising liabilities. Punjab Congress president Amarinder Singh Raja Warring claimed that the state’s debt has crossed ₹4 lakh crore and called on the government to explain how it plans to meet future spending obligations.
Cheema also referred to governance initiatives introduced by the government, including the digitisation of pension payments through a dedicated pension services portal and the launch of an e-deposit management system. He added that Punjab received incentives for digitising schemes under the SNA SPARSH programme.
Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema said on March 3, 2026 that the state now ranks among the top three in the country for revenue growth. Addressing a press conference in Chandigarh, he credited the improvement to stronger tax administration and higher collections from key sources such as GST, excise duty and stamp duty.
According to Cheema, Punjab’s own tax revenue increased substantially from ₹37,327 crore in 2021–22 to ₹57,919 crore in 2024–25. During the same period, the share of own tax revenue in the Gross State Domestic Product (GSDP) rose from 6.39% to 7.15%, which he attributed to better compliance and administrative reforms.
Excise revenue has been one of the major drivers of the increase. Cheema stated that collections from excise grew by 86.77% within less than four years. Comparing different administrations, he said the Akali Dal–BJP government collected ₹20,545 crore in excise revenue over five years, while the Congress government recorded ₹27,395 crore during its tenure. In contrast, the current government has already collected ₹37,975 crore up to January 2026, reflecting a higher yearly average.
Excise revenue stood at ₹6,157 crore in 2021–22 and is expected to reach around ₹11,500 crore in 2025–26. Its contribution to the GSDP has also improved, rising from 1.05% in 2021–22 to 1.28% in 2024–25.
On GST collections, Cheema highlighted a strong increase during the present government’s term. Punjab collected ₹83,739 crore in GST up to January 2026, compared to ₹61,286 crore during the 2017–22 period. The state GST component is projected to exceed ₹26,500 crore in 2025–26, up from ₹15,542 crore in 2021–22.
Stamp duty receipts have also grown notably. The state collected ₹19,515 crore up to January 2026, compared with about ₹12,400 crore during each of the previous two five-year tenures. The current government’s annual average from stamp duty is estimated at around ₹5,091 crore.
Cheema further said the government has significantly increased capital expenditure to support infrastructure development and economic growth. Capital spending during the Akali Dal–BJP government was ₹14,641 crore, while the Congress administration spent ₹19,356 crore. The current government plans capital expenditure of ₹31,630 crore.
Addressing concerns over debt, Cheema stated that the government inherited liabilities of nearly ₹3 lakh crore and said much of the new borrowing is being used to repay earlier debt and interest commitments. He added that the debt-to-GSDP ratio has declined from 48.25% to 44.47% during the present term.
The minister also highlighted steps taken by the government to implement pay commission recommendations, clear arrears and provide financial support to financially stressed state-run institutions. In addition, Punjab has strengthened its financial buffers by increasing reserves in the consolidated sinking fund and the guarantee redemption fund maintained with the Reserve Bank of India.
Cheema noted that the state’s fiscal management has become more challenging due to reduced central assistance. He said Punjab received ₹72,340 crore between 2017 and 2022 through revenue deficit grants and GST compensation, whereas only ₹27,832 crore was received up to January 2026, after which such grants were discontinued.
However, opposition leaders have raised concerns about the state’s rising liabilities. Punjab Congress president Amarinder Singh Raja Warring claimed that the state’s debt has crossed ₹4 lakh crore and called on the government to explain how it plans to meet future spending obligations.
Cheema also referred to governance initiatives introduced by the government, including the digitisation of pension payments through a dedicated pension services portal and the launch of an e-deposit management system. He added that Punjab received incentives for digitising schemes under the SNA SPARSH programme.
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