Punjab's Finance Minister Cheema Highlights Excise Reforms Boosting Public Welfare
Synopsis
On February 23, Punjab's Finance Minister Harpal Cheema announced a projected excise revenue of Rs 12,800 crore for 2026-27, emphasizing how the state's excise reforms are directly funding essential public services such as schools and hospitals.
Key Takeaways
Projected excise revenue for Punjab is Rs 12,800 crore by 2026-27.
Excise reforms are funding public welfare initiatives like schools and hospitals.
Revenue growth from Rs 2,755 crore in 2011-12 to Rs 10,744 crore in 2024-25.
New excise policy includes transparent processes for license renewals.
Punjab to launch its own malt manufacturing units .
Chandigarh, Feb 23 (NationPress) Anticipating an excise revenue of Rs 12,800 crore for the fiscal year 2026-27, Punjab's Finance Minister Harpal Cheema stated on Monday that the state's excise reforms are significantly enhancing public welfare by financing schools, hospitals, and various pro-people initiatives.
During the announcement of the new excise policy, Cheema emphasized that Punjab has decisively shifted from the stagnation seen under the previous Congress and Akali-BJP governments, transforming the excise sector into a transparent, enforcement-driven, and growth-oriented industry that is achieving record collections while cracking down on illicit trade.
He provided a thorough comparative analysis of the state's excise revenue trends, revealing that during the SAD-BJP administration in 2011-12, the excise revenue was a mere Rs 2,755 crore.
In the following decade, the growth trajectory was slow, culminating at only Rs 6,255 crore during the Congress rule in 2021-22.
“However, after the implementation of a more comprehensive policy framework in 2022-23 by the Bhagwant Mann-led administration, the state experienced a dramatic surge to Rs 8,428 crore. This upward momentum has persisted, with revenues reaching Rs 10,744 crore in 2024-25 and the current target of Rs 11,200 crore for 2025-26 now within reach.”
Outlining the key features of the new excise policy, he noted: “The Punjab government has initiated several strategies to optimize operations and assist existing businesses. A main aspect includes the renewal of current retail licenses with a 6.5 percent fee increase over the 2025-26 costs. In cases where groups opt not to renew, allotments will be processed through a transparent e-tendering system.”
“Additionally, the quota for Punjab medium liquor at 50 and 65 degrees has been augmented by three percent, totaling 8.79 crore proof liters to address consumer demand while keeping the market regulated. Moreover, to tackle the issue of illicit alcohol sales, the government will introduce 40-degree PML sub-vends specifically in areas identified as high-crime zones as per the Excise Act.”
The minister also announced that Punjab will now establish its own malt manufacturing units. “This strategic move signifies an advanced evolution in the state’s industrial policy, shifting Punjab from a downstream bottling-focused economy to a high-value manufacturing center,” he added.
Point of View
The insights shared by Finance Minister Harpal Cheema highlight a significant shift in Punjab's fiscal strategies. The emphasis on transparency and public welfare through excise revenue generation illustrates a commitment to enhancing essential services, marking a departure from previous administrations and their approaches.
NationPress
6 May 2026
Frequently Asked Questions
What is the projected excise revenue for Punjab in 2026-27?
Punjab is projecting an excise revenue of Rs 12,800 crore for the fiscal year 2026-27.
How have Punjab's excise reforms impacted public welfare?
The excise reforms are directly funding essential services such as schools and hospitals, thereby strengthening public welfare.
What was the excise revenue during the SAD-BJP regime?
During the SAD-BJP regime in 2011-12, the excise revenue stood at Rs 2,755 crore.
What measures are included in the new excise policy?
Key measures include the renewal of retail licenses with a fee increase and an increase in liquor quotas to meet consumer demand.
What strategic initiative is Punjab introducing in malt production?
Punjab will establish its own malt manufacturing units, transitioning to a high-value manufacturing hub.
