SAD hits out at Punjab govt after NITI Aayog's Fiscal Health Index report

Chandigarh: Opposition SAD on Saturday hit out at AAP government in Punjab, saying NITI Aayog's 'Fiscal Health Index (FHI) 2025' had ranked Punjab last among the 18 major states in the country "and it is a true reflection of the performance of Chief Minister Bhagwant Mann".

"It is a true reflection of the performance of CM Bhagwant Mann as well as depiction of the manner in which he had ruined the financial health of the state," two senior Shiromani Akali Dal leaders said in a statement here.

However, Aam Aadmi Party (AAP) MP Malvinder Singh Kang hit back at SAD, claiming that the dismal ranking of Punjab "is a direct outcome of the eight years of fiscal mismanagement under previous SAD and Congress governments".

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, Kang said in a statement.

"For many consecutive years, Punjab ranked 18th, reflecting emergency-like conditions in fiscal governance," said Kang.

Expressing shock at the latest findings of the Niti Aayog, senior SAD leaders Bikram Singh Majithia and Daljit Singh Cheema said "chief minister Bhagwant Mann had promised to make 'Rangla' (vibrant) Punjab but he has turned it into 'Kangla' (bankrupt) Punjab" even as they demanded the chief minister and finance minister Harpal Cheema submit their resignations immediately.

The SAD leaders alleged Punjab had failed comprehensively on all five parameters listed in the Fiscal Health Index including quality of expenditure, revenue mobilization, fiscal prudence, debt indices and debt sustainability.

"Punjab has won the dubious distinction of allocating only ten per cent of total development expenditure on capital expenditure which is proof that the AAP government has diverted public funds for party use," they alleged, according to the party statement.

The SAD demanded a high level probe be conducted "into this diversion and the money".

Mineral-rich Odisha, Chhattisgarh, Goa and Jharkhand have emerged as top-performing 'achievers' among the states listed in NITI Aayog's first FHI report released on Friday.

The report titled 'Fiscal Health Index 2025' ranked states for 2022-23, covered 18 major states that drive the Indian economy 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 in the Index.

The report noted that, the aspirational (Kerala, West Bengal, Andhra Pradesh and Punjab) states are struggling to meet the fiscal and revenue deficit targets, have low revenue mobilization, witnessing a growing debt burden with debt sustainability a concern in these states.

Speaking in Punjab's context, SAD leaders Bikram Majithia and Daljit Cheema said the Fiscal Health Index had busted many myths spun out by AAP and laid bare its real performance.

"As per the report, the social services spending as well as the spending on health and education decreased during AAP rule even as backlog of incomplete projects impacted capital expenditure," they said.

The opposition leaders said the report also listed that debt sustainability was in the negative and would continue to rise unless there was some intervention.

"All this happened because chief minister Bhagwant Mann did not work for the welfare of Punjabis and instead worked as a stooge of AAP convener Arvind Kejriwal," they alleged.

A state which used to top on nearly all parameters around 10 years back is now being listed at last while conducting a survey of 18 major states, they said.

The SAD leaders said the AAP government would be made accountable "for leading the state into this mess".

However, AAP leader Kang said how the Bhagwant 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 the substantial increase in revenue is also registered during the AAP government in Punjab," Kang said.

Kang said that expenditure on social services like health and education has been prioritised to ensure equitable development.

He added that efforts are underway to clear backlogs of stalled infrastructure projects, "neglected" under previous regimes.

"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, with the aim of uplifting Punjab from this fiscal crisis," said Kang.

Kang highlighted that the Mann government is committed to steering Punjab toward fiscal stability and ensuring transparent, people-focused governance that prioritizes long-term growth and development.