Fiscal health index report: AAP, Opposition leaders spar over Punjab’s performance
The report ranked states in terms of their contribution to India’s GDP, demography, total public expenditure, revenues, and overall fiscal stability.
A day after the Niti Aayog released its Fiscal Health Index (FHI) 2025 report, in which Punjab was ranked last among the 18 major states, the Shiromani Akali Dal (SAD) and ruling Aam Aadmi Party (AAP) government sparred over the state’s performance.
The report ranked states in terms of their contribution to India’s GDP, demography, total public expenditure, revenues, and overall fiscal stability.
According to the report, Punjab, Andhra Pradesh, West Bengal, and Kerala were the worst-performing states, struggling to meet the fiscal and revenue deficit targets, have low revenue mobilisation, and are witnessing a growing debt burden with debt sustainability remaining a major concern.
Result of mismanagement of previous regimes: AAP
AAP MP Malvinder Singh Kang claimed that Punjab’s dismal ranking was a direct outcome of eight years of fiscal mismanagement under the previous SAD and Congress governments.
Kang said, “The report, which evaluates data from 2014-15 to 2022-23, highlights Punjab’s consistent poor performance during SAD’s tenure from 2014 to 2017 and Congress’s rule from 2017 to 2022. For many years, Punjab ranked 18th, reflecting emergency-like conditions in fiscal governance.”
He added that the Mann-led government, formed in 2022, “is now actively addressing the systemic issues inherited from previous regimes”.
“Under the AAP government, revenue generation strategies have been revamped to reduce dependency on debt and a substantial increase in revenue was also seen,” said Kang, adding that expenditure on social services such as health and education has been prioritised to ensure equitable development.
“The SAD and Congress governments looted Punjab’s coffers, leaving the state in financial ruin. Now, the Mann government is working tirelessly to reverse this damage,” said Kang.
A reflection of CM Mann’s performance: SAD
In a statement issued on Saturday, SAD senior leaders Bikram Singh Majithia and Daljit Singh Cheema said, “It (Punjab’s ranking) is a true reflection of the performance of CM Bhagwant Mann as well as the depiction of the manner in which, he had ruined the financial health of the state.”
“CM Bhagwant Mann had promised to make ‘Rangla’ (vibrant) Punjab but instead turned it into a ‘Kangla’ (bankrupt) Punjab,” they said, adding that Punjab had failed on all five parameters -- quality of expenditure, revenue mobilisation, fiscal prudence, debt indices and debt sustainability.
“Punjab has won the dubious distinction of allocating only 10% of the total development expenditure on capital expenditure which is proof that the AAP government has diverted public funds for party use,” they alleged, demanding a high-level probe into the “fund diversion”.
“As per the report, the social services spending as well as the spending on health and education decreased during the AAP rule even as backlog of incomplete projects impacted capital expenditure. All this happened because CM Mann did not work for the welfare of Punjabis and instead worked as a stooge of AAP convener Arvind Kejriwal,” they alleged.
They also demanded the resignations of the CM and finance minister Harpal Cheema.
