The Punjab Government is set to raise an additional loan of Rs 1,000 crore through market borrowings in June, the third month of the financial year 2026-27. With this fresh loan, the state’s total borrowings during the first three months of the fiscal year will increase to Rs 6,300 crore.
According to official details, the government had already borrowed Rs 2,800 crore in April and Rs 2,500 crore in May. The new loan of Rs 1,000 crore is being raised for a period of seven years and will be utilised for capital expenditure, to carry out development and implement various schemes.
Punjab has planned to borrow Rs 43,798.38 crore during the ongoing financial year. According to state’s Finance Minister Harpal Singh Cheema, Punjab’s financial position is improving and that all borrowings are being undertaken within the prescribed debt limit. He also said that a significant portion of the funds was being used to repay principal amount and service interest on existing loans.
The latest borrowing comes at a time when the state government is preparing to roll out its flagship scheme for women, Mukh Mantri Mawan Dhiyan Satkar Yojana, from July 1. Under the scheme, all general category women will receive a monthly allowance of Rs 1,000, while women belonging to Scheduled Caste category will get Rs 1,500 per month.
