Punjab Department Wise Schemes Update 2026

Policy Update
Saachi Saxena

Background

Punjab is one of India’s major agricultural states and has historically played an important role in national food security. Its economy is supported by agriculture and allied activities, industry, services, infrastructure and a large network of urban and rural settlements. At the same time, the state faces challenges related to agricultural diversification, groundwater and irrigation management, employment generation, infrastructure development, energy subsidies and environmental sustainability.

The Punjab Budget 2026–27, presented on 8 March 2026, outlines the State Government’s spending priorities across major areas of economic and social development. With a total budget outlay of ₹2,60,437 crore, the Budget places emphasis on social welfare, agriculture, education, healthcare, infrastructure, employment, urban development, energy and environmental sustainability.

A notable feature of the Budget is its broad sectoral coverage. The budget compilation identifies 68 schemes, programmes and policy initiatives across 21sectors, covering areas ranging from social protection and agriculture to education, healthcare, infrastructure, industry, sports and governance.

Agriculture remains an important component of the state’s policy priorities, with measures aimed at supporting farmers while encouraging diversification and climate resilience. These include agricultural power subsidies, crop residue management, high-value horticulture, direct seeded rice, crop diversification and dairy support. The Budget provides ₹15,377 crore for agriculture and allied sectors, including ₹600 crore for crop residue management and ₹1,300 crore for climate-resilient horticulture.

The Budget also gives considerable attention to human development. The Education sector receives ₹19,279 crore, supporting Sikhiya Kranti 2.0, school infrastructure, digital transformation and Schools of Eminence, while ₹6,879 crore is allocated to Health, including support for Mukhya Mantri Sehat Yojana, Aam Aadmi Clinics, medical equipment and medical education.

Infrastructure and public services form another major part of the spending strategy. Allocations cover roads and bridges, irrigation and flood control, water supply and sanitation, urban development and power distribution. The Budget also provides ₹5,440 crore for roads, bridges and public buildings, while ₹2,971 crore is provided for water resources and canal networks and ₹7,257 crore for housing and urban development.

Overall, Punjab’s 2026–27 policy approach combines welfare spending with investments in agriculture, human capital, infrastructure, employment and economic activity. The emphasis on crop diversification, environmental programmes, urban services, industrial incentives and digital governance also reflects an attempt to address both immediate public needs and longer-term development challenges.

PUNJAB BUDGET 2026–27 — SCHEMES AND ALLOCATIONS

Social Welfare & Justice / Women & Child Development Department

Scheme: Mukh Mantri Mawan Dheeyan Satkar Yojana (2026; ₹9,300 crore), Social Security and Financial Assistance Pensions (existing; ₹6,150 crore), Scheduled Caste Sub-Plan (existing; ₹17,700 crore), Free Bus Travel for Women (2018; ₹600 crore), Integrated Child Development Services (1975; ₹932 crore), Navi Disha Scheme (2025; ₹65 crore) and Meri Rasoi Scheme (2026; ₹900 crore).
Key Details: The sector focuses on income support, social protection, women’s mobility, food security and child development. The Mukh Mantri Mawan Dhian Satikar Yojana strengthens direct household support for women, while pensions provide continuing financial assistance to women. Free bus travel seeks to improve women’s access to education, employment and public services, while ICDS addresses nutrition and early childhood development. Coverage: Eligible women, SC beneficiaries, pension beneficiaries, children and families across Punjab. Latest Budget: ₹18,304 crore for the Social Welfare & Justice sector. The scale of expenditure reflects the continued importance of welfare transfers and basic social protection in supporting household consumption and reducing vulnerability.

Agriculture & Farmers’ Welfare Department

Scheme: Agricultural Power Subsidy (existing; ₹7,715 crore), Crop Residue Management (2018; ₹600 crore), Climate-Resilient and High-Value Horticulture Project (2026; ₹1,300 crore), Sugarcane Payment Support (existing; ₹270 crore), Direct Seeded Rice Incentive (2020; ₹40 crore), Paddy-to-Kharif-Maize Diversification Pilot (2026; ₹15 crore) and Dairy/Milk Procurement Support (existing; ₹100 crore).
Key Details: The agricultural package combines conventional farmer support with measures aimed at diversification and environmental sustainability. Crop residue management and direct-seeded rice seek to reduce the resource and environmental costs associated with paddy cultivation, while horticulture and maize diversification encourage movement towards alternative crops. Coverage: Farmers and agricultural households across Punjab. Latest Budget: ₹15,377 crore for Agriculture and Allied Sectors. The allocation is particularly significant for Punjab given the state’s dependence on agriculture and the need to address groundwater depletion, crop concentration and climate-related pressures.

Forests, Environment & Biodiversity Department

Scheme: Punjab CAMPA/PUNCAMPA Forestry Programme (2016; ₹238 crore) and JICA-supported Biodiversity Conservation Project (2026; ₹760 crore).
Key Details: These initiatives focus on afforestation, ecological restoration, biodiversity conservation and strengthening the state’s environmental resilience. The JICA-supported project expands the focus beyond plantation activities towards broader conservation and natural-resource management. Coverage: Forest areas, biodiversity-rich regions and natural-resource landscapes across Punjab. Latest Budget: ₹238 crore for PUNCAMPA and ₹760 crore for the JICA-supported biodiversity conservation project. The increased attention to ecological programmes is relevant to Punjab’s longer-term development given pressures on land, water and natural ecosystems.

School Education Department

Scheme: Sikhiya Kranti 2.0 (2026; ₹3,500 crore), Samagra Shiksha Abhiyan (2018; ₹1,435 crore), School Infrastructure (existing; ₹690 crore), Digital Transformation of Schools (existing; ₹395 crore) and Schools of Eminence (2023; ₹193 crore).
Key Details: The education package combines improvements in learning outcomes with investments in physical and digital infrastructure. Sikhiya Kranti 2.0 places emphasis on foundational learning, science and commerce education, teacher development, career counselling and school governance, while Schools of Eminence seek to provide higher-quality learning environments. Coverage: Government schools and students across Punjab, including more than 7.35 lakh students receiving career counselling. Latest Budget: ₹19,279 crore for the Education sector. The allocation represents an investment in human capital and is important for improving educational attainment, employability and long-term productivity.

Higher & Technical Education Department

Scheme: Grants-in-Aid to State Universities and Constituent Colleges (existing; ₹1,760 crore) and Technical Education (existing; ₹569 crore).
Key Details: The allocations support higher education institutions, universities, colleges, technical institutions and ITIs. Alongside general higher education, technical education is important for developing job-relevant skills and strengthening the state’s skilled workforce. Coverage: State universities, constituent colleges, technical institutions and ITIs across Punjab. Latest Budget: ₹1,760 crore for grants-in-aid to state universities and constituent colleges and ₹569 crore for technical education. These investments support human-capital formation and can contribute to improving the alignment between education and labour-market requirements.

Health & Family Welfare Department

Scheme: Mukhya Mantri Sehat Yojana (2026; ₹2,000 crore), Aam Aadmi Clinics (2022; ₹351 crore), Medical Equipment (existing; ₹300 crore) and Medical Education & Research (existing; ₹1,220 crore).
Key Details: The health package combines financial protection, primary healthcare and strengthening of medical infrastructure. Mukhya Mantri Sehat Yojana expands access to cashless healthcare, while Aam Aadmi Clinics provide primary healthcare closer to communities. Investments in medical equipment and medical education seek to strengthen the capacity of public hospitals and health institutions. Coverage: Eligible families and residents across Punjab. Latest Budget: ₹6,879 crore for the Health sector. The allocation addresses both immediate healthcare access and longer-term improvements in the state’s health infrastructure and workforce.

Police / Home Affairs / Justice & Jails Department

Scheme: Police Technology and Infrastructure Modernisation (existing; ₹390 crore), AI-based Jail Security and Surveillance (2026; ₹535 crore) and Comprehensive Drug & Socio-Economic Census (2026; ₹100 crore).
Key Details: The sector combines conventional policing and infrastructure expenditure with technology-based approaches to public security. AI-enabled prison surveillance is intended to strengthen monitoring and security within correctional facilities, while the drug and socio-economic census seeks to generate more systematic information for policy intervention. Coverage: Police establishments, prisons and communities across Punjab. Latest Budget: ₹11,577 crore for Home Affairs, Justice & Jails. The emphasis on technology and data also reflects the growing role of digital systems in policing, prison management and evidence-based policy.

Rural Development & Panchayats Department

Scheme: Rural Link Roads: The Punjab Budget 2026–27 proposes ₹7,606 crore for the completion and upgradation of 19,876 km of rural link roads, aimed at improving rural connectivity and access to markets, services and economic opportunities. MGNREGA: Existing programme, with ₹1,500 crore proposed allocation. Pradhan Mantri Awas Yojana–Gramin (PMAY-G): Launched in 2016, with ₹800 crore proposed allocation. Rangla Punjab Vikas Scheme: Launched in 2025, with ₹1,170 crore proposed allocation for rural development and local infrastructure.
Key Details: The Budget places emphasis on strengthening rural connectivity through the proposed ₹7,606 crore expenditure for 19,876 km of rural link roads, alongside employment, housing and village-level development programmes.

Roads, Buildings & Transport Department

Scheme: Roads and Bridges (existing; included in ₹5,440 crore), Public Buildings (existing; included in ₹5,440 crore), PMGSY-III (2019; no separate allocation stated) and Central Road & Infrastructure Fund projects (2000; no separate allocation stated).
Key Details: The department focuses on road connectivity, infrastructure modernisation and public transport capacity. Road and bridge investments support movement of agricultural goods, workers and commercial activity, while rural connectivity projects improve access to markets and public services. Coverage: Rural and urban road networks and public infrastructure across Punjab. Latest Budget: ₹5,440 crore for roads, bridges and public buildings. The Budget also provides for the addition of 1,279 new buses, strengthening public transport connectivity.

Water Resources, Irrigation & Flood Control Department

Scheme: Canal Network Modernisation (existing; included in ₹2,971 crore), Ferozepur Feeder Strengthening (existing; included in ₹2,971 crore), Kathgarh Lift Scheme (existing; included in ₹2,971 crore) and Flood Protection Works (existing; included in ₹2,971 crore).
Key Details: The department’s initiatives focus on improving irrigation efficiency, modernising canal infrastructure and protecting communities and agricultural land from flooding. Strengthening water infrastructure is particularly important for Punjab’s agriculture, where irrigation remains central to farm productivity. Coverage: Agricultural, irrigation-dependent and flood-prone areas across Punjab. Latest Budget: ₹2,971 crore for water resources and canal networks. The allocation also has implications for water management and agricultural resilience.

Water Supply & Sanitation Department

Scheme: Water Supply and Sanitation Programmes (existing; ₹1,487 crore) and Nal Jal Mitra (2026; no separate allocation stated).
Key Details: The programmes aim to strengthen drinking-water supply, sanitation infrastructure and local service delivery. Nal Jal Mitra introduces a community-level approach to maintaining and managing rural water-supply systems. Coverage: Gram Panchayats and communities across Punjab. Latest Budget: ₹1,487 crore for water supply and sanitation programmes. Improving reliable water access can reduce service gaps in rural areas while strengthening the sustainability of local water infrastructure.

Housing & Urban Development Department

Scheme: Municipal Development Fund (existing; ₹1,000 crore), Canal-based Surface Water Supply (2026; ₹500 crore), AMRUT 2.0 (2021; ₹665 crore), Punjab Municipal Services Improvement Project (existing; ₹500 crore) and Swachh Bharat Mission–Urban (2014; ₹171 crore).
Key Details: The initiatives address municipal infrastructure, drinking-water supply, sanitation and urban service delivery. The canal-based surface-water project for Ludhiana and Amritsar seeks to diversify urban water sources, while AMRUT 2.0 and municipal improvement programmes support broader urban infrastructure. Coverage: Urban local bodies across Punjab, with the canal-based surface-water project specifically covering Ludhiana and Amritsar. Latest Budget: ₹7,257 crore for Housing and Urban Development. The allocation reflects the growing infrastructure requirements associated with urbanisation and expanding municipal populations.

Industry & Commerce Department

Scheme: Industrial Policy 2026 (2026; no separate allocation stated), Industrial Fiscal Incentives (existing; ₹500 crore) and One Time Settlement Schemes (existing; no separate allocation stated).
Key Details: The initiatives seek to improve the investment environment, support industrial expansion and provide fiscal assistance to businesses. Industrial fiscal incentives can reduce the cost of investment for eligible firms, while settlement schemes seek to address outstanding liabilities and facilitate business continuity. Coverage: Industries, enterprises and investors across Punjab. Latest Budget: ₹2,805 crore for the industry sector, including ₹500 crore for industrial fiscal incentives. The industrial focus is important for reducing dependence on agriculture and strengthening employment opportunities outside the farm sector.

Employment & Skill Development Department

Scheme: Employment Generation Initiatives (existing; ₹287 crore), Punjab Skill Development Mission (2015; included in employment/skill allocation) and Placement and Employment Initiatives (existing; included in employment allocation).
Key Details: The sector focuses on employment creation, vocational training, skill development and connecting job seekers with employment opportunities. The Budget reports that 63,943 candidates had been recruited in government departments since 2022. Coverage: Youth, skilled workers and job seekers across Punjab. Latest Budget: ₹287 crore for employment generation initiatives. Strengthening employability and job matching is particularly relevant to addressing the transition of Punjab’s workforce towards non-agricultural employment.

Sports & Youth Affairs Department

Scheme: Sports Infrastructure Development (existing; included in ₹1,791 crore), Village Playgrounds (existing; included in ₹1,791 crore), Indoor Gyms (existing; included in ₹1,791 crore) and Adventure Sports Camps (existing; included in ₹1,791 crore).
Key Details: The initiatives expand access to sports infrastructure at both village and community levels. The planned development of 6,000 new village playgrounds and 5,000 indoor gyms is intended to increase opportunities for sports participation and physical activity. Coverage: Youth and communities across Punjab. Latest Budget: ₹1,791 crore for sports infrastructure. Beyond recreation, investment in sports infrastructure can support youth engagement, talent development and community participation.

Power / Energy Department

Scheme: Mission Roshan Punjab (2026; ₹5,000 crore), Agricultural Power Subsidy (existing; ₹7,715 crore), Free Power to Domestic Consumers (existing; ₹5,771 crore) and Industrial Power Subsidy (existing; ₹2,064 crore).
Key Details: The sector combines large-scale electricity subsidies with investment in distribution infrastructure. Mission Roshan Punjab focuses on modernising the electricity distribution network, while subsidies support agricultural, domestic and industrial consumers. Coverage: Agricultural, domestic and industrial electricity consumers across Punjab. Latest Budget: ₹15,550 crore in total power subsidies, comprising ₹7,715 crore for agricultural power, ₹5,771 crore for free power to domestic consumers and ₹2,064 crore for industrial power subsidy. Mission Roshan Punjab receives ₹5,000 crore. The combination of subsidies and infrastructure investment reflects the challenge of balancing affordability with the financial and operational sustainability of the power sector.

Food & Civil Supplies Department

Scheme: Meri Rasoi (2026; ₹900 crore).
Key Details: Meri Rasoi provides quarterly essential ration kits to eligible households and seeks to expand food-security coverage. The initiative is expected to cover approximately 40 lakh families, with provision for 10 lakh additional beneficiaries and nearly 7,500 Fair Price Shops. Coverage: Low-income and eligible households across Punjab. Latest Budget: ₹900 crore. The programme strengthens the state’s food-security framework by providing direct assistance to households facing higher costs of essential consumption.

Tourism, Religious Affairs & Cultural Affairs Department

Scheme: Mukh Mantri Tirath Yatra Yojana (2016; ₹312 crore) and 650th Birth Anniversary / Prakash Diwas of Guru Ravidas Ji (2026; ₹100 crore).
Key Details: The initiatives support pilgrimage, religious tourism and cultural commemorations. The Mukh Mantri Tirath Yatra Yojana facilitates pilgrimage for citizens, while the Guru Ravidas Ji commemoration provides resources for the 650th Prakash Diwas. Coverage: Approximately 7.15 lakh citizens under the pilgrimage programme and communities participating in cultural and religious events. Latest Budget: ₹312 crore for Mukh Mantri Tirath Yatra Yojana and ₹100 crore for the 650th Prakash Diwas of Guru Ravidas Ji. These initiatives also contribute to religious tourism and preservation of Punjab’s cultural heritage.

Mining & Geology Department

Scheme: Mining Administration and Reform Initiatives (existing; no separate allocation stated).
Key Details: The initiatives focus on scientific mining, regulatory administration, monitoring and revenue generation from mineral resources. Punjab ranked first among Category C states in the State Mining Readiness Index (SMRI) 2025, which evaluates state performance in non-coal mineral mining, including auction performance, early mine operationalisation, exploration and sustainable mining. Coverage: Mining areas and mineral-resource operations across Punjab. Latest Budget: No separate scheme allocation is stated in the provided Budget compilation. The emphasis on scientific and regulated mining is relevant to improving resource governance while ensuring that mineral extraction contributes to state revenues.

Governance / Administrative Reforms Department

Scheme: Doorstep Delivery of Government Services (2019; no separate allocation stated), Easy Jamabandi (existing; no separate allocation stated), Easy Registry (existing; no separate allocation stated) and Digitised Flood-Relief Disbursement (2022; no separate allocation stated).
Key Details: These initiatives seek to simplify administrative procedures, digitise government services and reduce the time and transaction costs faced by citizens. Doorstep delivery brings selected public services closer to citizens, while digital land and registry services aim to make property-related transactions more accessible and transparent. Coverage: Citizens across Punjab, particularly users of public, land and revenue services. Latest Budget: No separate allocation is stated in the provided Budget compilation. The focus on digital governance can improve administrative efficiency and reduce dependence on physical government offices.

Civil Aviation Department

Scheme: Adampur Airport Operationalisation (existing; no separate allocation stated) and Halwara Airport Operationalisation (2026; no separate allocation stated).
Key Details: The initiatives focus on strengthening air connectivity and making airport infrastructure operational for passenger and regional connectivity. Improved air links can support business travel, tourism, investment and movement of skilled workers. Coverage: Residents, businesses and travellers across Punjab, particularly areas served by Adampur and Halwara airports. Latest Budget: No separate allocation is stated in the provided Budget compilation. Strengthening regional aviation can complement road and rail infrastructure by improving Punjab’s integration with major domestic economic centres.

Conclusion

Punjab’s Budget 2026–27 presents a broad-based spending strategy, with a total outlay of ₹2,60,437 crore and initiatives spread across 21 departments/sectors. The Budget places significant emphasis on social protection, agriculture, education, healthcare, infrastructure, urban development and energy. Large allocations to social welfare, education and agriculture indicate continued attention to household support and rural livelihoods, while spending on roads, water resources, urban services and power distribution supports the state’s infrastructure needs.

The agricultural measures are particularly important for Punjab’s longer-term development. Support for crop residue management, climate-resilient horticulture, direct seeded rice and diversification attempts to balance farmer support with emerging environmental and resource pressures. Similarly, investments in education, healthcare and employment seek to strengthen human capital and improve access to public services.

Among the identified sectors, the Education sector receives the highest allocation of ₹19,279 crore, followed by Social Welfare & Justice at ₹18,304 crore and Power at ₹15,550 crore. The Employment & Skill Development sector has the lowest stated allocation at ₹287 crore.

The Budget also signals an emphasis on modernising the state economy through industrial fiscal incentives, technology-enabled governance, infrastructure development and power-distribution modernisation. Mission Roshan Punjab receives ₹5,000 crore, while industrial fiscal incentives receive ₹500 crore.

At the same time, some areas in the provided budget compilation do not have separately stated scheme-level allocations, particularly mining, governance and administrative reforms, and civil aviation. This highlights the importance of greater department-wise transparency and more detailed reporting of scheme-level expenditure in future budget documents.

Overall, Punjab’s 2026–27 Budget seeks to combine welfare, agricultural support, human-capital development and infrastructure investment with measures for economic diversification and administrative modernisation. The effectiveness of this approach will ultimately depend on how efficiently these allocations are implemented and whether they translate into improved productivity, employment, public services and sustainable growth across the state.

References

Government of Punjab, Department of Finance. (2026). Budget speech 2026–27. Government of Punjab.

d7212a72-2d72-4506-9a47-064ff8f76b7c_Budget_Speech_English 2026-27.pdf

PRS Legislative Research. (2026). Punjab budget analysis 2026–27. PRS Legislative Research.

Punjab Budget Analysis 2026-27

About the Contributor

Saachi Saxena is an undergraduate student pursuing B.A. (Hons.) Economics at Gargi College, University of Delhi. Her research interests include climate economics, public policy, sustainable development, healthcare economics, and development policy. She has actively contributed to policy research and social impact initiatives and is passionate about evidence-based policymaking for inclusive and resilient development.

Acknowledgment

The author is grateful to IMPRI – Impact and Policy Research Institute for providing the opportunity to prepare this piece. The author sincerely acknowledges the guidance, valuable feedback, and constructive suggestions received by Arya Gupta and Gayathry Sanjay Balaram during the review process, which significantly strengthened the quality and analytical depth of this article.

Disclaimer

The views and opinions expressed in this policy update are those of the author and do not necessarily reflect the official position of IMPRI or any affiliated institution. While every effort has been made to ensure the accuracy of the information and data presented, readers are encouraged to verify facts independently before relying on them for any decision-making purpose.