Union Budget once again betrays Punjab and Haryana farmers: Harpal Cheema

Chandigarh:In response to the Union Budget, Punjab Finance Minister Harpal Singh Cheema stated that the Union government has once more overlooked the valid concerns of Punjab and Haryana farmers. This action highlights its empty claims of being pro-farmer. Cheema noted that there has been no increase in the Agriculture Infrastructure Fund and no real support to boost market infrastructure. This leaves the agrarian states in disbelief.

He emphasized that the farmers of Punjab feed the nation. However, the Union government continues to neglect investment in the systems that ensure food security. The Finance Minister criticized the selective approach to promoting high-value crops. While the budget mentions crops like coconut, cashew, sandalwood, and dry fruits, it offers nothing for farmers in North India who rely on crops suited to their agro-climatic conditions. Cheema said this budget clearly indicates the Centre's bias and its ongoing disregard for the farmers in foodgrain-producing states, especially Punjab. These farmers deserve respect, support, and proper investment, not empty slogans.

Harpal Singh Cheema expressed that this Union Budget for 2026 provides nothing for the farmers of Punjab and Haryana regarding increased funding for the Agriculture Infrastructure Fund or strengthening mandi infrastructure. He added that states will need to fund these developments themselves. The emphasis on high-value crops completely leaves out Punjab.

He said the Urea Subsidy was reduced from 1,26,475 Crore last year to 1,16,805 Crore. There is nothing for the "Aam Aadmi" in this budget. There is zero tax relief at a time when incomes are stagnant and inflation is eroding the savings of ordinary people. In fact, the Government of India has increased the Securities Transaction Tax (STT), which will negatively affect the common person. There is no relief on Long-Term Capital Gains since STT has increased. It feels like the government is squeezing the common man from all sides.

Regarding Defence, he stated that they hoped the Union Finance Minister would announce major schemes to strengthen India's defense production and significantly raise the Defense Budget, considering last year's tensions with Pakistan. However, none of that happened. The total mention of defense was just four times in the Union Finance Minister’s speech.

Highlighting the PM-Vishwakarma Scheme, which was launched with great enthusiasm last year to support traditional artisans and craftspeople by offering skill training, he noted that the budget was reduced from 5,100 Crore to 3,861 Crore. On one hand, they claim this budget aims to develop legacy industries and is a Yuva-Shakti budget; on the other hand, they cut funding for the scheme designed exactly for this purpose.

Speaking about the 16th Finance Commission, he mentioned that the vertical devolution, or total share of all states in the tax pool, remains at 41 percent with no change. The Finance Commission has completely ignored the struggles of states and failed to increase this share, despite the financial challenges faced by states. The horizontal devolution for Punjab increased to 1.996 percent from 1.807 percent in the previous Finance Commission, but there are no Revenue Deficit Grants from the 16th FC. The 15th FC had recommended these grants. Conditions on the State Disaster Response Fund are overly restrictive, which will hinder Punjab’s ability to effectively manage and respond to disasters. He added that there was no mention of the state in the Budget Speech. They have completely forgotten about Punjab and Punjabis.

On the education front, the situation is very uninspiring. He pointed out a less than 10 percent growth from last year (~8 percent) in the education budget. The funding for the PM-SHRI scheme remains unchanged from last year at 7,500 Crore.

Regarding Special Assistance to States for Capital Creation (SASCI), he indicated no mention of the scheme. All states have requested an extension and meaningful increase in funding to maintain high levels of capital expenditure.

From a health perspective, he noted that the AYUSHMAN Bharat Scheme budget remains unchanged at 9,500 Crore. The Swacchh Bharat Mission budget has been halved to 2,500 Crore from 5,000 Crore last year. The VB-G-RAM-G budget increased to Rs 95,692 Crore from Rs 88,000 Crore under MGNREGA.

Furthermore, he added that the budget for the Border Infrastructure and Management Scheme (a central scheme) was reduced from 5,597 Crore last year to 5,577 Crore in the current budget.

Harpal Singh Cheema concluded that this budget leans more toward South and North-East India, with nothing for Punjab or even North India. It offers nothing for farmers and agriculture, nothing for jobs, and nothing for youth in this Union Budget.