From 2022 onwards, Punjab has faced a worsening financial crisis. Despite the Aam Aadmi Party (AAP) government coming to power with a promise of reform and economic recovery, the state’s debt has ballooned alarmingly. By mid-2025, the debt had surged to approximately ₹4.17 lakh crore, with an addition of over ₹1.5 lakh crore during the AAP tenure alone. This rapid accumulation of debt has raised serious concerns among economists, policymakers, and the public. The state’s revenue generation has not kept pace with expenditure, and development projects have been severely hampered due to a lack of funds. The 2025–26 state budget, allocating only ₹10,000 crore for capital expenditure, reflects the government’s shrinking fiscal space and inability to invest in essential infrastructure. Opposition parties have consistently criticised the administration for financial mismanagement and fiscal indiscipline.
Governance in Punjab under the AAP government has come under heavy scrutiny. Many of the promises made during the 2022 election campaign remain unfulfilled, leading to disillusionment among the electorate. One of the most glaring failures has been the non-implementation of the ₹1,000 per month stipend promised to every adult woman in the state. Similarly, the much-publicised promise of creating massive employment opportunities and regularising contractual employees has not materialised. While the government claims to have introduced education reforms, the situation on the ground tells a different story. Many government schools still function in dilapidated conditions, with inadequate classrooms and a lack of basic facilities. The disconnect between promises and performance has fostered widespread resentment among various sections of society, including youth, women, and government employees.
The law and order situation in Punjab has seen a significant decline, creating a sense of fear and insecurity among the populace. Incidents of violence, drug-related crimes, and communal tensions have become more frequent. Despite the government’s claims of launching aggressive anti-drug campaigns, the ground reality suggests otherwise. Drugs continue to be a major menace, especially among youth in rural areas. The opposition has labelled the anti-drug initiatives as a string of missed deadlines and hollow declarations. Additionally, violent incidents such as targeted killings, bomb blasts (e.g., in Amritsar), and the growing presence of radical elements have raised serious alarms about internal security. The rise in such incidents has rekindled fears of a return to the militancy-affected era of Punjab’s past, eroding public confidence in the state machinery.
Punjab’s farmers, the backbone of the state’s economy, continue to remain in distress. Since 2022, protests by farmers have gained momentum again, with key demands including a legal guarantee for Minimum Support Price (MSP), full loan waivers, and withdrawal of privatisation policies affecting agriculture. The farmers accuse the government of apathy and betrayal, as several assurances given during the previous agitation have not been fulfilled. The resurgence of farmer mobilisations, including marches, sit-ins, and road blockades, has disrupted normal life on several occasions, but they have also drawn attention to the deep agrarian crisis and the failure of both state and central governments to adequately address it.
Healthcare workers across Punjab have launched multiple protests over the past three years. The privatization of Basic Health Units (BHUs) and Rural Health Centers (RHCs) has triggered widespread opposition from doctors and paramedics, who argue that this move endangers public access to affordable healthcare. Over 2,500 doctors, under the banner of the Punjab Medical Association, have also protested against unfulfilled government promises regarding promotions, pay parity, and working conditions. The healthcare system, already strained by financial constraints, has been further weakened by these protests, which have disrupted services and heightened public anxiety about medical care availability.
Employees across various departments—including education, revenue, and technical services—have expressed growing frustration with the government’s inaction on core issues. One of the most vocal and persistent groups has been the computer teachers, many of whom have served for over 20 years without regularization or fair compensation. In January 2025, they staged a large protest outside the residence of a state minister, demanding justice and employment security. Government employees have also criticized the administration for failing to reinstate the Old Pension Scheme, ignoring long-pending demands for salary revisions, and not filling thousands of vacant positions in public offices. Such widespread unrest has led to strikes, administrative slowdowns, and a general loss of morale in the public sector.
The cumulative effect of financial instability, administrative lapses, poor law enforcement, and unfulfilled promises has created a pervasive sense of fear, uncertainty, and frustration among the people of Punjab. The optimism that accompanied the rise of a new political force in 2022 has gradually given way to disillusionment. Citizens across rural and urban areas express a growing lack of faith in the government’s ability to protect their interests or deliver on its commitments. The rise in insecurity, whether due to crime, unemployment, or policy unpredictability, has driven many, particularly the youth, to seek opportunities outside the state or even abroad.
In summary, from 2022 till mid-2025, Punjab has seen a deepening crisis on multiple fronts. Financial mismanagement, unfulfilled promises, declining law and order, and widespread protests by farmers, healthcare professionals, teachers, and government employees highlight a state struggling to meet the expectations of its people. As discontent grows, so does the call for accountability and decisive governance. Punjab stands at a critical juncture, where timely and honest policy interventions are crucial to restoring stability, public trust, and hope for the future.