19/03/2026
Panel 2 at The Punjab Plan 2026 shifted the conversation to the hard realities of sustaining Punjab’s finances and building its human capital. Featuring Prof Upinder Sawhney and Prof. Lakhwinder Singh, the discussion unpacked the structural roots of Punjab’s economic slowdown, ranging from a dangerously high debt burden and shrinking fiscal space to deeper institutional and human development challenges. Prof. Sawhney highlighted that nearly three-fourths of the state’s receipts are locked into committed expenditure, leaving little room for growth-oriented investment, and stressed the urgent need for fiscal discipline, subsidy rationalization, and power sector reforms.
She also outlined a dual responsibility framework. While the Central Government must step up through special status grants, timely fiscal devolution, and investments in agricultural modernization, the Government of Punjab must lead internal reforms. These include plugging revenue leakages through technology, digitizing land and property systems, restructuring loss-making public enterprises, and moving away from regressive subsidies toward targeted support.
Prof. Lakhwinder Singh complemented this with a deeper structural diagnosis, identifying five key constraints: weak sectoral linkages, dysfunctional fiscal policy, geopolitical pressures, human capital deficits, and institutional breakdown. Calling for a transition to a knowledge-driven economy, he stressed investments in education, health, gender equity, and skills aligned with future sectors like AI, alongside the need for social harmony and institutional renewal. Together, the panel made it clear that Punjab’s revival will depend not just on managing debt, but on rebuilding the very foundations of its economic and human potential.