Reacting sharply to the Union Budget 2026–27, Punjab Finance Minister Harpal Singh Cheema on Sunday said the Union government has once again ignored the legitimate concerns of farmers from Punjab and Haryana, exposing what he termed its hollow claims of being pro-farmer.
Cheema pointed out that there has been no increase in the Agriculture Infrastructure Fund, nor any concrete assistance to strengthen mandi and market infrastructure, leaving agrarian states deeply disappointed.
“The farmer of Punjab feeds the nation, yet the Union government continues to neglect investment in systems that ensure food security,” Cheema said. He criticised the selective promotion of high-value crops, noting that while the Budget mentions coconut, cashew, sandalwood, and dry fruits, it offers nothing for North Indian farmers whose livelihoods depend on crops suited to their agro-climatic conditions.
“This Budget clearly shows the Centre’s bias and its continued indifference towards foodgrain-producing states, especially Punjab. Our farmers deserve respect, support, and appropriate investment—not empty slogans,” he added.
The Finance Minister said there is nothing in the Budget for farmers of Punjab and Haryana in terms of enhanced allocations to the Agriculture Infrastructure Fund or strengthening mandi infrastructure, forcing states to bear the development burden from their own resources. He also noted that while the government spoke of developing high-value crops, Punjab was completely left out.
Cheema further highlighted that the urea subsidy has been reduced from ₹1,26,475 crore last year to ₹1,16,805 crore in the current Budget. He said there was “nothing for the aam aadmi,” with zero tax relief at a time when incomes are stagnating and inflation is eroding household savings. He also criticised the increase in Securities Transaction Tax (STT), saying it would adversely affect ordinary investors, adding that there was no relief on long-term capital gains.
On defence, Cheema said the state was expecting major announcements to boost defence production and a meaningful increase in defence spending in view of last year’s tensions with Pakistan. “Nothing of that sort has happened. Defence was mentioned only four times in the Finance Minister’s speech,” he remarked.
Referring to the PM Vishwakarma Scheme, Cheema said the scheme—launched last year with much fanfare to support traditional artisans and craftspeople—has seen its allocation reduced from ₹5,100 crore to ₹3,861 crore. “On one hand, the government claims this is a Yuva-Shakti and legacy industries Budget, and on the other, it cuts funds for schemes meant precisely for that purpose,” he said.
On the 16th Finance Commission, Cheema noted that the vertical devolution of taxes to states has been retained at 41 per cent, with no increase despite mounting fiscal stress on states. While Punjab’s horizontal devolution has marginally increased to 1.996 per cent from 1.807 per cent under the 15th Finance Commission, he said Punjab will receive no Revenue Deficit Grants, which were recommended earlier. He also criticised restrictive conditions on the State Disaster Response Fund (SDRF), warning that they would hamper Punjab’s ability to manage disasters.
“There was no mention of Punjab in the Budget speech. The Centre seems to have completely forgotten Punjab and Punjabis,” he said.
On education, Cheema termed the Budget “uninspiring,” noting that allocations have grown by less than 10 per cent compared to last year, while funding under the PM-SHRI scheme remains unchanged at ₹7,500 crore.
He also pointed out that the Special Assistance to States for Capital Investment (SASCI) scheme found no mention, despite states seeking its extension and enhancement to sustain capital expenditure.
In the health sector, he said the Ayushman Bharat scheme allocation remains unchanged at ₹9,500 crore, while the Swachh Bharat Mission budget has been halved to ₹2,500 crore from ₹5,000 crore last year. He added that the Border Infrastructure and Management Scheme budget has been reduced from ₹5,597 crore to ₹5,577 crore.