Chandigarh, February 23 The Punjab government projected on Monday that it would collect Rs 12,800 crore in excise revenue for 2026-27, with Finance Minister Harpal Singh Cheema saying that liquor rates would not increase.
Cheema further stated that Punjab's excise reforms have not only rewritten the state's revenue trajectory but are now directly strengthening public welfare by funding schools, hospitals, and other schemes that benefit the public.
The state has decisively moved away from the stagnation of previous Congress and Akali-BJP governments, transforming excise into a transparent, enforcement-driven, and growth-oriented sector that is delivering record collections while tightening the noose around illicit trade, noted Cheema.
The FM presented a detailed comparative analysis of the state's excise trajectory.
"During the SAD-BJP regime in 2011-12, excise revenue stood at a modest Rs 2,755 crore. Over the subsequent decade, growth remained slow, and it reached only Rs 6,255 crore during the Congress regime in 2021-22," he said.
However, following the implementation of a more robust policy framework in 2022-23 by the Bhagwant Singh Mann government, the state witnessed an immediate and massive leap to Rs 8,428 crore.
This momentum has continued, with revenue climbing to Rs 10,744 crore in the 2024-25 period and meeting the current target of Rs 11,200 crore for 2025-26, he said.
Detailing key provisions of the new excise policy for 2026-27, Cheema said, "The Punjab government introduced several measures to streamline operations and support existing businesses."
"A key feature includes the renewal of existing retail licenses at a 6.5 per cent increase over the fees for 2025-26. In cases where groups are not renewed, the allocation will be handled through a transparent e-tender process."
The quota for Punjab Medium Liquor at 50 and 65 degrees has been increased by 3 per cent, bringing the total to 8.79 crore proof litres to meet consumer demand while regulating the market.
Furthermore, to combat the sale of illicit alcohol, the government will introduce 40-degree PML sub-vends, specifically in areas identified as high-crime zones under the Excise Act, he noted.
In a step towards industrial self-reliance and economic diversification, the minister announced that Punjab will now host its own malt manufacturing units.
This strategic initiative signals a sophisticated evolution in the state's industrial policy, transitioning Punjab from a downstream bottling-centric economy to a high-value manufacturing hub, he pointed out.
"By domesticating the entire production cycle, from the processing of barley to the distillation of premium malt, the state aims to eliminate its dependence on external suppliers for raw spirits."
"This shift not only ensures the production of superior, homegrown quality spirits within state borders but also creates a robust farm-to-factory ecosystem that adds significant value to Punjab's agricultural output," he said.
He emphasised that this transition is designed to retain capital within the state, generate specialised technical employment, and strengthen Punjab's position as a leader in high-end industrial distillation.
Sharing enforcement data, Cheema underlined the Punjab government's zero-tolerance policy against liquor smuggling from neighbouring states and Chandigarh.
"Law enforcement has been exceptionally active, resulting in 4,406 FIRs and the arrest of 4,324 individuals. Operations included 26,218 raids and the establishment of 24,832 checkpoints, leading to the confiscation of 455 vehicles and 1,76,552 bottles of liquor," the minister noted.
