Chandigarh, Jan 11: Punjab Finance Minister Harpal Singh Cheema has called on the Centre for an urgent special fiscal package, citing the state’s dual struggle with national security costs and a multi-crore climate disaster.
During a pre-Budget meeting for the Union Budget 2026-27, Cheema told Union Finance Minister Nirmala Sitharaman that Punjab’s financial health is a matter of national interest. He requested a one-time borrowing hike of 1% of the GSDP to help the state recover from floods that caused losses worth ₹12,905 crore last year.
“A border state recovering from security pressure and climate shocks cannot be left to fend for itself,” Cheema said, noting that the monsoon disaster affected over 2,300 villages.
The state is also seeking ₹1,000 crore for police modernization and anti-drone tech to secure the International Border. Additionally, Cheema pressed for the release of ₹7,757 crore in pending Rural Development Fund (RDF) dues and asked the Centre to double crop diversification incentives to ₹15,000 per acre to save Punjab’s depleting groundwater.
