Chandigarh, July 1,  UPDATED PM 

Punjab has registered its highest-ever GST growth, clocking a 44.44% increase in June 2025 and a robust 27.01% growth in the first quarter of FY 2025–26, marking a new fiscal milestone for the state. Finance Minister Harpal Singh Cheema shared the figures while felicitating the state’s top five taxpayers at a press conference in Chandigarh on Monday.

The minister honoured representatives from Ambuja Cement, HMEL, Samsung India, Tata Steel, and Dada Motors, acknowledging their contribution to the state’s revenue. He credited the growth to proactive tax enforcement, improved compliance, and industry cooperation.

Punjab Outpaces National Average 

Cheema, accompanied by Taxation Secretary Ajit Balaji Joshi and Excise and Taxation Commissioner Jitendra Jorwal, said the state collected ₹2,379.90 crore in June 2025, up from ₹1,647.69 crore in June 2024. The Q1 collection reached ₹6,830.40 crore, significantly higher than the ₹5,377.75 crore recorded in the same period last year.

This strong performance came despite economic uncertainties and border-related tensions in May 2025. The monthly growth trajectory stood at 15.35% in April and 24.59% in May, helping Punjab outpace the national average.

SAD-BJP, Congress Failed to Build Revenue: Cheema

Aiming at previous governments, Cheema contrasted the AAP-led regime’s fiscal performance with the Congress and SAD-BJP tenures. He said the AAP government has collected ₹62,733 crore in three years, surpassing the ₹55,146 crore collected during the Congress’s five-year term. The SAD-BJP era saw nominal growth in VAT and CST, respectively.

Cheema accused the Congress government of relying heavily on ₹30,070 crore in GST compensation without laying a long-term revenue roadmap. In contrast, he said, the Mann government has improved enforcement, digitised inspections, and encouraged voluntary compliance.

State Uncovers Major Tax Frauds Worth ₹188 Crore

The minister revealed that the State Intelligence & Preventive Unit (SIPU) had busted a GST fraud syndicate involving 20 fake firms, resulting in fraudulent billing worth ₹866.67 crore and tax evasion of ₹157.22 crore. In another case, M/s Maa Durga Roadlines was found evading ₹30.66 crore in taxes through bogus e-way bills and unaccounted transport of goods.

Cheema added that these actions reflect the state’s commitment to plug revenue leakages and ensure financial stability.

Debt Management, Future Planning Underway

On the state’s debt burden, Cheema said Punjab must repay ₹43,200 crore (including ₹25,000 crore interest and ₹18,200 crore principal) in FY 2025–26, largely inherited from previous regimes. Despite ₹13,000 crore in deductions by the Centre, the state plans to borrow ₹49,900 crore, including ₹8,500 crore in the second quarter, to meet its debt redemption obligations.

He emphasised that Punjab’s fiscal footing is improving, with recent investments of ₹1,000 crore each into the Guarantee Redemption Fund and the Consolidated Sinking Fund, which now exceeds ₹10,000 crore, up from just ₹3,000 crore in 2022.