Punjab debt likely to touch ₹4.17L cr by yr-end

The cash-strapped Aam Aadmi Party government in Punjab is expected to take a loan of ₹49,900 crore this year, pushing public debt by the end of March next to a staggering ₹4.17 lakh crore.

- HARPREET BAJWA @Chandigarh

Punjab is the second-most indebted state in the country in terms of debt to gross state domestic product ratio.

Sources said of the loan amount, ₹18,198.89 crore will go towards repaying old loans and ₹24,995.49 crore for servicing legacy debt. That makes up 86 percent of fresh borrowing.

By March 31, 2026, the total debt of Punjab will stand at ₹4,17,136.10 crore, an approximate 9-percent increase from the current outstanding debt of ₹3,82,934.98 crore.

In 2024-25, the government paid ₹23,953.72 crore as interest on the outstanding debt, 23 percent of total revenue receipts. Thus, interest liability has constantly been rising due to growing debt. The debt liability has increased by ₹1 lakh crore in the past three years.