Punjab Outlook

Before the 2022 Punjab Assembly elections, Arvind Kejriwal and the Aam Aadmi Party (AAP) made sweeping promises to transform the state’s finances and governance. Kejriwal confidently declared that he would have sufficient funds for Punjab’s exchequer and that there would be no shortage of money. The party’s manifesto included ambitious welfare schemes such as free electricity up to 300 units with 24/7 uninterrupted supply, Rs 1,000 per month to every woman in Punjab over the age of 18, complete elimination of corruption from Punjab’s system, free healthcare and medicines, meeting all demands of ASHA and anganwadi workers, and substantial job creation with investment in health and education.
The Financial Strategy That Never Materialized
Kejriwal’s confidence in funding these extensive welfare schemes was based on his claim that he would generate necessary funds through sand mining revenue and by curbing corruption in the state. He particularly emphasized this while defending the Rs 2,100 monthly stipend promise for women, which was later scaled down to Rs 1,000. The AAP leadership portrayed corruption as the primary drain on Punjab’s finances and suggested that eliminating it would unlock sufficient resources to fund all their promised schemes without burdening the state’s fiscal health.
The Harsh Financial Reality
Three years into AAP’s governance, Punjab faces a severe financial crisis that directly contradicts Kejriwal’s pre-election assurances. The cash-strapped Punjab government has been forced to request the Centre to increase its borrowing limit for the financial year above the sanctioned amount. The state is grappling with a revenue deficit of Rs 23,198 crore, representing 2.9% of the Gross State Domestic Product (GSDP) in 2024-25, with Punjab persistently observing revenue deficit since 2019-20. Most alarmingly, Punjab’s burgeoning debt burden continues to grow, with budgetary estimates showing it could exceed Rs 3.47 lakh crore, representing a staggering 46.8% of the state’s GSDP.
Unfulfilled Promises and Growing Discontent
Despite winning an overwhelming mandate with 92 out of 117 seats in the 2022 Punjab Assembly elections, many of AAP’s key promises remain unfulfilled as the party approaches three and half years in power. The most significant failure has been the Rs 1,000 monthly stipend for women, which remains largely unimplemented due to financial constraints. The Punjab exchequer continues to bleed under AAP’s welfare guarantees, with the promise of free electricity proving to be particularly costly for the state’s finances. Subsidies and freebies have pushed Punjab deeper into a debt trap, with pensions alone accounting for about 19 percent of the state’s expenditure in 2024-25.
Political Consequences and Opposition Attack
The gap between promises and delivery has created growing public discontent and increased pressure on AAP to meet the expectations they created during their election campaign. Opposition parties, particularly the Congress, have intensified their attacks on AAP, accusing the party of failing to deliver on key promises during their three years in power. This situation represents a classic case of ambitious electoral promises colliding with fiscal reality, where the promised revenue generation through anti-corruption measures has proven woefully insufficient to fund the extensive welfare schemes committed during the campaign. The empty exchequer that you mentioned stands as stark evidence of the disconnect between Kejriwal’s pre-election confidence about Punjab’s financial capacity and the ground reality of governance.