Cash-strapped Punjab government to raise Rs 8,500-crore loan during July-Sept
With this, the total borrowings raised by the government during this fiscal year will touch Rs 14,741. 92 crore.
The opposition accused the government of pushing the state into financial ruin and warned that Punjab is on the brink of bankruptcy.
Sources said that the Reserve Bank of India (RBI) has approved the market borrowings to be availed by the state government.
The government would raise a loan of Rs 2,000 crore in July, Rs 3,000 crore in August and Rs 3,500 crore in September.
During April and May, the government availed loans to the tune of Rs 6,241.92-crore.
The government is mulling to raise Rs 34,201.11 crore loans this year. Thus, by the end of March 2026, the total debt of the state is likely to touch Rs 4 lakh crore.
Sources said that, till March last year, the state's total outstanding debt stood at Rs 3.82 lakh crore which is over 44 per cent of the Gross State Domestic Product (GSDP).
A report on debt-stressed states in the country, tabled in Parliament by Union Minister of State for Finance Pankaj Chaudhary had expressed concern on the debt-to-GSDP ratio of Punjab as it stated that it was the second highest in the country.
During the first two months of this fiscal year April and May the state's revenue deficit was Rs 5,513.65 crore and it received Rs 12,903. 04 crore in revenue receipts, while the revenue expenditure stood at Rs 18,416.69 crore.
"We are raising loans at the lowest rate of interest prevailing in the market as the borrowings were within the permissible limit set by the RBI,'' said an officer on condition of anonymity.
Leader of the Opposition and senior congress leader Partap Singh Bajwa said, "The AAP government has drowned Punjab in debt over its three-year tenure. It now plans to borrow Rs 8,500 crore in the second quarter (July-September) of this fiscal year—Rs 2,000 crore in July, Rs 3,000 crore in August, and Rs 3,500 crore in September. This reckless borrowing shows no regard for the state's financial health,' he said.
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