Senior Congress leader and MLA Pargat Singh once again raised serious questions over the economic policies of the Aam Aadmi Party government in Punjab. He said that by taking a fresh loan of Rs 2,500 crore, the government has pushed Punjab under a debt burden of Rs 6,500 crore in less than two months.
He stated that this new borrowing exposes the government’s financial failure and irresponsible approach. According to him, this is not merely a matter of financial figures, but one that directly impacts Punjab’s development, employment and the lives of ordinary people.
Pargat said that according to available figures and information, the government had already taken a loan of Rs 4,000 crore in April and now another Rs 2,500 crore loan is being raised this month. It is also being claimed that the government is preparing to take an additional Rs 2,500 crore loan in June next month. He added that media reports suggest the government is planning to raise nearly Rs 40,000 crore in fresh debt during the financial year 2026–27.
Pargat said that Chief Minister Bhagwant Singh Mann and Finance Minister Harpal Singh Cheema should clarify the situation regarding the repeated borrowings and Punjab’s financial condition. The government must explain where the thousands of crores borrowed recently have been spent and on which development works. If this money is being used only for subsidies and repayment of old loans, then it will push the state deeper into economic crisis.
Pargat alleged that the Punjab government is taking fresh loans every year to repay old debts and interest. A large portion of every new loan, he claimed, is being spent on servicing previous debts and interest payments. If this trend continues, Punjab will head toward a severe financial crisis. He said Punjab is already burdened with massive debt. According to available data, the state’s total debt has crossed Rs 4 lakh crore and if borrowing continues at the same pace, the figure may soon reach nearly Rs 5 lakh crore.
He further stated that every person in Punjab today carries an average debt burden of more than Rs 1.25 lakh and this burden is likely to increase further in the future. A major portion of the state budget is being spent on employees’ salaries, pensions, electricity subsidies and interest payments on old debt. According to several financial reports, nearly 90 per cent of the budget is exhausted on these fixed expenditures, leaving very little for development works. He added that, if necessary, this issue would be raised in the Assembly, among the public and on every democratic platform.
