Chandigarh: The Punjab govt has defended its fiscal management amid fierce political opposition, revealing that it has paid out more in debt servicing over the past 50 days than it has raised in new market loans.The fiscal breakdown from the Aam Aadmi Party (AAP) follows allegations from opposition sides that a fresh ₹2,500 crore loan raised on Wednesday is pushing the state deeper into a financial crisis.Punjab finance minister, Harpal Singh Cheema, stated that while the state borrowed ₹5,300 crore over April and May, it simultaneously had paid out ₹5,845 crore to service legacy debts. This leaves the govt in a net-negative borrowing position of ₹545 crore for the period.“The state govt is borrowing within the projections made in the budget,” Cheema said, pointing out that inherited debt interest payments alone consumed ₹2,645 crore over the last two months. “The opposition parties left behind a massive debt legacy that we are tackling effectively.”The ₹2,500 crore loan raised on Wednesday through the sale of state govt securities received required central clearance and will fund ongoing capital expenditure and development projects. Officials described the transaction as a routine liquidity exercise.Under the state budget for 2026-27 , Punjab’s total outstanding debt is projected to rise to ₹4,47,754 crore by March 31, 2027. To manage this liability, the administration has capped net annual borrowing at ₹38,471 crore, positioning the fiscal deficit at 4.08% of the gross state domestic product (GSDP).Treasury officials rely on a projected 10% nominal GSDP growth target to stabilise the state’s total debt-to-GSDP ratio at 45.13%, maintaining that essential welfare schemes and infrastructure development remain fully funded. MSID:: 131227907 413 |
