From a steady increase of 13 to 14 per cent in GST collections till September 2025, Punjab is witnessing a decline in mop up, following the reforms in the tax regime reducing the original four major slabs (5, 12,18 and 28 per cent ) to two primary rates (5 per cent for essentials and 18 per cent as standard rate).
In October, November and December, the collections recorded a dip of Rs 511 crore. In December alone, the GST collections recorded a dip of Rs 84 crore, compared to the corresponding period in 2024. In December 2024, the GST collection was Rs 2050 crore while in December 2025, it came down to Rs 1,966 crore.
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The state government had targeted an income of Rs 27,650 crore from GST alone in the 2025-26 Budget. Sources say if the trend continues, the state may not be able to reach its target. By November, the collections were Rs 16,996 crore. “It will be difficult to collect another Rs 11,000 crore in four months,” an official said.
Finance Minister Harpal Cheema said that this was not the state government’s fault. “This has been done by the Centre. Do not blame the Punjab government for this. We have been surpassing all previous records in our collections. It is not about Punjab but we are losing money from our kitty. They keep doing something or the other and the states suffer. This is why I have been seeking resumption of GST compensation,” he said.
The GST Council had reformed the tax system in September 2025, largely reducing the original major slabs to two primary rates, 5 per cent for essentials, and 18 per cent as the standard rate. A special 40 per cent rate has also been introduced to select “sin” and luxury goods.
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GST collections in September 2025 were Rs 2,194 crore, an increase of Rs 261 crore from Rs 1,933 crore in September 2024. Collections in October were Rs 2,211 crore, compared to Rs 2,311 crore in 2024, down by Rs 100 crore. In November 2024, these were Rs 2,552 crore as against Rs 2,225 crore in November 2025, a fall of Rs 327 crore.
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Punjab goes to polls in 2027. The government has promised Rs 1,000 per month to women. As it would be the last year of the government, it would have to make arrangements for the scheme. A key pre-2022 poll promise. The government had prepared a landpooling policy to arrange for money. However the policy had to be scrapped in view of massive protests. The government is now looking at mopping up resources by selling government properties, a step taken by previous governments in the state.
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Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India.
Professional Background
Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state.
Experience: She previously worked with The Tribune and has played a key role in launching various city editions.
Special Projects:
Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship.
Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river.
Recent Notable Articles (Late 2025)
Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government:
1. Legislative & Governance Standoffs
“Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill” (Dec 20, 2025): Reporting on the state’s move to block the Centre’s “Viksit Bharat” mission, which the state claims will undermine MGNREGA.
“Punjab govt doubles down on special sessions, sixth in January” (Dec 19, 2025): Detailing the AAP government’s use of special sessions as a legislative tool amid tensions with the Governor.
“Punjab asks ‘VIP teachers’ working near Chandigarh to go back to border districts” (Dec 16, 2025): Reporting on CM Mann’s move to end the practice of influential teachers avoiding postings in remote areas.
2. Political Analysis & Rural Polls
“Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab” (Dec 19, 2025): Analyzing CM Bhagwant Mann’s rhetoric against the Shiromani Akali Dal (SAD) following local body elections.
“AAP claims win in 78% Punjab zila parishads as counting continues” (Dec 18, 2025): Breaking down the results of the 2025 rural elections.
“Rahul Gandhi and Sidhu alike, says Bhagwant Mann” (Dec 13, 2025): Covering the CM’s critique of the Congress leadership.
3. Law Enforcement & Bureaucracy
“Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement” (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government.
“Punjab declines to give parole to Amritpal Singh” (Nov 27, 2025): Detailing the state government’s refusal to grant parole to the radical preacher and sitting MP.
4. Welfare & Economy
“Punjab government’s plan to add more freebies to ‘atta-dal’ scheme hits funds roadblock” (Dec 4, 2024): An analysis of the fiscal challenges facing the state’s flagship food security program.
“Mann leads Punjab delegation to Japan and South Korea for investor outreach” (Dec 2, 2025).
Signature Beat
Kanchan Vasdev is known for her insider access to Punjab’s political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the “Farmhouse Policy” (Dec 18, 2025) and river pollution with a unique policy-oriented lens.
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