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Punjab's ₹2.60 Lakh Cr Budget FY27 Focuses on Women Welfare & Debt Reduction; GSDP Growth at 10%

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
09 Mar 2026
~2 min
Source: Indian Express
Key Data:₹2,60,437 crore₹9,80,635 crore GSDP10% GSDP growth44.47% debt-to-GSDP4.08% fiscal deficit2.06% revenue deficit
Bodies:World BankJICANABARD
Practice MCQs from today's news ▸
What This Article Covers

1.Punjab's FY27 budget is its last before state polls, featuring no new taxes, a ₹2.60 lakh crore outlay, and a projected 10% GSDP growth.

2.The budget prioritizes women's welfare with a 96% increased allocation to ₹18,304 Cr, including a new 'Mukh Mantri Mawan Dhian Satikar Yojana' offering direct cash transfers.

3.Fiscal health is a focus, with debt-to-GSDP ratio reduced to 44.47% and fiscal deficit (4.08%) within FRBM limits, alongside increased capital expenditure for asset creation.

The Big Picture
Prelims · HighMains · Medium

Punjab's final full budget before the 2027 assembly elections presents a ₹2.60 lakh crore outlay focused on women-centric welfare schemes and fiscal consolidation. Key highlights include a record ₹18,304 Cr for social welfare, a 10% GSDP growth projection, and a reduction in the debt-to-GSDP ratio from 48.25% to 44.47%.

Exam Lens

Quick Exam Facts From News

Budget Outlay FY27₹2,60,437 crore
GSDP Projection FY27₹9,80,635 crore (10% growth)
Debt-to-GSDP Ratio44.47% (down from 48.25%)
Women Welfare Allocation₹18,304 crore (96% increase)
Fiscal Deficit (% of GSDP)4.08%
Capital Expenditure₹18,381 crore (doubled)

1-Minute Revision

  • ›Budget Outlay FY27: ₹2,60,437 crore
  • ›GSDP Projection FY27: ₹9,80,635 crore (10% growth)
  • ›Target this Data: Punjab's FY27 budget outlay of ₹2,60,437 crore and GSDP projection of ₹9,80,635 crore.
  • ›Target this Nodal Body: Punjab Finance Ministry presenting the state budget.
  • ›Target this Legal Point: Fiscal deficit (4.08%) and revenue deficit (2.06%) being within limits prescribed by the Fiscal Responsibility and Budget Management (FRBM) framework.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Punjab state budget for 2026-27 was presented by the Finance Minister. At the Union level, which constitutional article mandates the presentation of the Annual Financial Statement (Budget)?

Q2Statement-basedHard

Consider the following statements regarding Punjab's Budget for 2026-27:

1. The budget has an outlay of over ₹2.6 lakh crore and imposes no new taxes.

2. The debt-to-GSDP ratio is projected to increase from 44.47% in 2025-26 to 48.25% in 2026-27.

3. A new scheme 'Meri Rasoi' with a ₹900 crore allocation will provide free quarterly ration kits.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to Punjab's Budget 2026-27, what is the projected Gross State Domestic Product (GSDP) for the fiscal year?

Q4Application/ImpactMedium

What is the primary fiscal objective highlighted by the Punjab government's reduction of the debt-to-GSDP ratio from 48.25% to 44.47%?

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