Punjab Projects ₹12,800 Crore Excise Revenue for 2026–27, Focus on Welfare Spending

Punjab’s excise revenue is projected to reach ₹12,800 crore in the financial year 2026–27, marking a significant milestone in the state’s fiscal performance. Announcing this, Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema stated that the state’s excise reforms are not only transforming revenue generation but also directly contributing to public welfare through investments in schools, hospitals, and pro-people initiatives. Unveiling the new Excise Policy, Cheema emphasized that Punjab has moved beyond the stagnation witnessed during previous Congress and Akali-BJP governments. He said the sector has now evolved into a transparent, enforcement-driven, and growth-oriented system that ensures higher revenue while curbing illegal trade. Speaking at a press conference at Punjab Bhawan alongside Excise and Taxation Commissioner Jitendra Jorwal, Cheema presented a comparative overview of excise revenue trends. He noted that during the SAD-BJP regime in 2011–12, the revenue stood at ₹2,755 crore, which increased to ₹6,255 crore by 2021–22 under the Congress government. However, after the implementation of a strengthened policy framework in 2022–23 under the leadership of Chief Minister Bhagwant Singh Mann, the revenue saw a sharp rise to ₹8,428 crore. This upward trajectory continued with ₹10,744 crore in 2024–25 and is expected to meet the current target of ₹11,200 crore in 2025–26. Detailing the 2026–27 policy, Cheema said the government has introduced multiple measures to streamline operations and support businesses. Existing retail licenses will be renewed with a 6.5% increase over the previous year’s fees, while non-renewed groups will be allocated through a transparent e-tendering process. To regulate supply and meet consumer demand, the quota for Punjab Medium Liquor (PML) at 50 and 65 degrees has been increased by 3%, taking the total to 8.79 crore Proof Litres. Additionally, the government plans to introduce 40-degree PML sub-vends in areas identified as high-crime zones under the Excise Act to curb illicit liquor sales. Highlighting the focus on ease of doing business, Cheema announced that brand price increases of up to 4% under EDP and EBP categories will now be approved automatically, reducing bureaucratic delays. The government is also working to extend operational and dispatch hours to improve logistical efficiency. In a major industrial initiative, the minister revealed that Punjab will establish its own malt manufacturing units. He described this move as a shift towards high-value manufacturing, aimed at reducing dependence on external suppliers for raw spirits. By enabling the entire production cycle—from barley processing to premium malt distillation—within the state, the policy seeks to create a strong farm-to-factory ecosystem, enhance product quality, and generate skilled employment. Cheema added that this strategy will help retain capital within Punjab while strengthening its position in high-end industrial distillation. On enforcement, the minister reiterated the government’s zero-tolerance policy against liquor smuggling from neighbouring states and Chandigarh. He said strict action has led to the registration of 4,406 FIRs and the arrest of 4,324 individuals. Enforcement agencies conducted 26,218 raids and set up 24,832 checkpoints, resulting in the seizure of 455 vehicles and 1,76,552 bottles of liquor. Additionally, authorities destroyed 38,23,576 litres of Lahan, seized 82,990 litres of ethanol and ENA, confiscated 66,794 litres of illicit liquor, and dismantled 374 operational stills, underscoring the government’s commitment to public safety and strict law enforcement.