The Punjab Cabinet, under Chief Minister Bhagwant Mann, has increased the value-added tax (VAT) on petrol by 61 paise and on diesel by 92 paise per litre. This decision aims to generate additional revenue, estimated at Rs 395 crore from diesel and Rs 150 crore from petrol annually, amidst the state's financial crisis. Additionally, the government has revoked the Rs 3 per unit electricity subsidy for consumers with loads up to 7 KW, a move projected to save Rs 1,500 crore per year. These measures have drawn significant criticism from opposition parties and petroleum traders, who argue that the hikes will burden the public and exacerbate inflation. The state is also facing a massive power subsidy bill expected to exceed Rs 24,000 crore this year. Furthermore, bus fares have been increased by 23 paise per km to generate additional revenue.