The Punjab Government may be facing criticism from the Opposition over the rising debt burden, but for the first time in five years, the state has begun the financial year with a revenue surplus of Rs 2,813.18 crore. Driven by rising retail fuel prices and an upswing in the real estate sector, the state’s cash registers appear to be ringing again.Fiscal indicators for the first month of 2026-27 reveal that Punjab’s revenue receipts jumped to Rs 10,642.42 crore, significantly higher than the Rs 5,911.98 crore recorded in April 2025. With revenues soaring, largely because of an unprecedented rise in non-tax revenue collections, the state has posted a revenue surplus for the first time during the tenure of the AAP government.In 2022, when AAP came to power in Punjab, the state had recorded a revenue deficit of Rs 420.11 crore in the first month of the financial year. The deficit widened to Rs 1,412.43 crore in 2023, Rs 2,178.11 crore in 2024 and Rs 2,011.86 crore in April 2025.A closer look at the fiscal indicators shows that non-tax revenue collections surged to Rs 3,037.76 crore in April this year, compared to just Rs 461.05 crore during the same month last year.Officials in the state Finance Department told The Tribune that the sharp rise in non-tax revenue was mainly due to higher collections from infrastructure cess and proceeds from disposal of government land by the Housing Department, which were realised in April.The tax revenue also increased this year, primarily due to higher GST collections. While Punjab had collected Rs 5,450.93 crore in tax revenue in April 2025, the figure rose to Rs 7,597.41 crore in April this year. Grants-in-aid from the Centre, which were nil last year, remained minimal at Rs 7.25 crore in April 2026.The concern, however, is that Punjab continues to rely heavily on borrowings. The state raised loans worth Rs 2,410 crore in April and another Rs 2,500 crore in May.Government officials rejected Opposition allegations over mounting debt, saying the fresh borrowing was largely meant to repay legacy debt inherited from previous governments. They said the state repaid principal and interest amounting to Rs 5,845 crore during April and May, which was Rs 935 crore more than the loans raised recently.