Chandigarh: Punjab govt on Tuesday raised Rs 1,300 crore through the auction of 12-year bonds conducted by the RBI, setting off a political slugfest with the opposition questioning the pace of borrowing and the incumbent AAP defending it as part of planned fiscal management.The bonds, aimed at financing capital expenditure and ongoing development schemes, were sold at a cut-off yield of 7.8%, with strong investor response. Officials said the borrowing is part of the state’s approved plan for 2026-27 and was undertaken with the Centre’s consent.The move drew sharp reactions from Shiromani Akali Dal functionary and former Punjab minister Bikram Singh Majithia. He alleged the state was sliding into a “debt trap”, pointing out that this follows a Rs 1,500-crore borrowing earlier this month. He claimed nearly Rs 2,800 crore has been raised within 20 days and flagged concerns over rising debt levels.Echoing similar concerns, Congress leader Partap Singh Bajwa termed the pace of borrowing “alarming”, saying it indicated a growing financial burden on the state.Responding to the criticism, finance minister Harpal Singh Cheema said the borrowing was within limits prescribed by the central bank and part of a structured plan. He said the state raises loans in phases during the year to fund development works, while simultaneously repaying a portion of earlier debt.Punjab plans to raise about Rs 43,798 crore through market borrowings in 2026-27, a significant share of which will go towards repayment of past loans and servicing existing liabilities.
