Union Budget once again betrayal for Punjab and Haryana farmers: Harpal Cheema
Centre turned its back on MSP, ignored market and agricultural infrastructure needs: Finance Minister
Chandigarh 1 February 2026: Reacting to the Union Budget, Punjab Finance Minister Harpal Singh Cheema said that the Union government has once again ignored the legitimate concerns of Punjab and Haryana farmers, exposing its hollow claims of being pro-farmer. Cheema pointed out that there has been no increase in the Agriculture Infrastructure Fund nor any concrete assistance to strengthen market infrastructure, leaving the agrarian states in a state of disbelief.
He said that the farmer of Punjab feeds the nation, yet the Union government is continuously neglecting investment in systems that ensure food security. The Finance Minister also criticised the selective approach adopted to promote high-value crops. While the budget mentions crops like coconut, cashew, sandalwood and dry fruits, there is nothing for farmers in North India who depend on crops suited to their agro-climatic conditions. Harpal Singh Cheema said that this budget clearly shows the Centre's bias and its continued indifference towards the farmers of foodgrain producing states, especially Punjab. These farmers deserve respect, support and appropriate investment, not empty slogans.
Punjab Finance Minister Advocate Harpal Singh Cheema said that there is nothing for Farmers of Punjab and Haryana in terms of increased allocation to Agriculture Infra Fund or strengthening Mandi Infrastructure in this Union Budget 2026. He added that States will have to do it from their own funds for the development. Talked about development of High-Value Crops but left out Punjab fully.
He said Urea Subsidy reduced from 1,26,475 Crore last year to 1,16,805 Crores. Nothing for “Aam Aadmi” in this budget, Zero tax relief in today’s times when incomes are not increasing and inflation is eating up savings of common man. Infact, Government of India has increased STT (Securities Transaction Tax) which will adversely affect common man. No relief on Long-Term Capital Gains since STT has been increased. It is like squeezing the common man from all sides.
Speaking on Defence he said we were hoping that Union FM would announce major schemes to make India stronger on Defence Production and meaningfully increase the Defence Budget in view of last year’s tensions with Pakistan. Nothing of that sort has happened. Total mention of defence was “Four (4)” Times in Union FM’s Speech.
Highlighting PM-Vishwakarma Scheme, he informed that launched with so much fan-fare last year to provide holistic, end-to-end support to traditional artisans and craftspeople, offering skill training. Budget reduced from 5,100 Crore to 3,861 Crore. On one side they say this budget is aimed at developing legacy industries and a Yuva-Shakti Budget ; then they cut budget for scheme meant exactly for this.
Speaking on 16th Finance Commission,he said the vertical devolution (total share of all states in tax pool) is kept at 41 percent. No change. Finance Commission has completely ignored the plight of states and failed to increase this share despite the fiscal stretch faced by states. Horizontal Devolution to Punjab increased to 1.996 percent from 1.807 percent in 15th Finance Commission. No Revenue Deficit Grants from 16th FC. 15th FC had recommended these grants. Conditions on SDRF are overly restrictive and will affect the State like Punjab’s ability to effectively mitigate and manage disasters. He added that No Mention of State in Budget Speech. They have completely forgotten about Punjab and Punjabis.
On Education front, it is very Uninspiring. He said Less than 10% Growth from last year (~8%) on Education buget. Budget remains unchanged from last year at 7,500 Crore on PM- SHRI scheme.
Special Assistance to States for Capital Creation (SASCI)- he said No mention of the scheme. All states has requested extending and enhancing the outlay of scheme meaningfully to continue high-levels of CAPEX.
On Health point of view, he said AYUSHMAN Bharat Scheme Budget remains unchanged at 9,500 Crore. Swacchh Bharat Mission Budget halved at 2,500 Crore from 5,000 Crore last year. VB-G-RAM-G Budget at Rs 95,692 Crore up from Rs 88,000 Crore under MGNREGA.
Furthermore he added that Border Infrastructure and Management Scheme (Central Scheme) Budget reduced from 5,597 Crore last year to 5,577 Crore in the current budget.
Harpal Singh Cheema said that this Budget is more inclined towards South and Nort-East India side. Nothing for Punjab or even North India. Nothing for Farmers and Agriculture. Nothing for Jobs and Youth in this union budget.
City Air News 

