Punjab Government Plans ₹9,500 Crore Loan Amid Opposition Criticism
Punjab government to raise ₹9,500-cr loan in 3 months amid opposition flak
Hindustan Times
Image: Hindustan Times
The Punjab government intends to raise ₹9,500 crore (approximately $1.15 billion USD) through market borrowing in the first quarter of the 2026-27 financial year, facing backlash from opposition parties over rising debt levels. The funds will be allocated for capital expenditure and debt repayment, while concerns about fiscal health persist.
- 01Punjab government plans to raise ₹9,500 crore through market borrowing in Q1 2026-27.
- 02The loan will be mobilized in three tranches: ₹4,000 crore in April, ₹3,000 crore in May, and ₹2,500 crore in June.
- 03Opposition leaders criticize the government for deteriorating fiscal health and increasing debt liabilities.
- 04Finance Minister Harpal Singh Cheema assures that borrowing will comply with the Fiscal Responsibility and Budget Management Act (FRBM).
- 05A cabinet sub-committee has been formed to address dearness allowance issues for state employees.
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The Punjab government is set to raise ₹9,500 crore (approximately $1.15 billion USD) through market borrowing during the first quarter of the 2026-27 financial year, with plans to mobilize ₹4,000 crore in April, ₹3,000 crore in May, and ₹2,500 crore in June. This decision has drawn criticism from opposition parties, who argue that the government's increasing debt, now estimated at ₹4.47 lakh crore by the end of the fiscal year, is jeopardizing the state's fiscal health and pushing it toward a financial emergency. Finance Minister Harpal Singh Cheema stated that the borrowing aligns with the limits set by the Fiscal Responsibility and Budget Management Act (FRBM), aimed at capital expenditure and debt repayment. Additionally, a cabinet sub-committee has been established to address dearness allowance and relief for state employees, amid ongoing demands for the payment of ₹14,000 crore in dues and the restoration of the old pension scheme.
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The government's borrowing plan may affect public services and employee benefits, as funds are allocated for debt repayment and capital expenditures.
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