Punjab debt crisis worsens: Govt borrows Rs 2500 crore in May; debt liability crosses Rs 4 lakh crore
PTC News Desk: The Punjab Government on Tuesday borrowed Rs 2500 crore on Tuesday, May 19 as part of its ongoing borrowing cycle. This marks the third loan raised within a span of just 30 days.
Earlier on April 21, the state had secured Rs 1,300 crore and Rs 1,500 crore on April 2.
The government has raised loan in three parts with Rs 1,000 crore, Rs Rs 800 crore and 700 crore with repayment tenure of 18, 15 and 12 years respectively.
The interest rate will be determined through the sale of government bonds in the open market, with banks bidding to offer the most competitive rate.
Punjab’s reliance on borrowing has remained consistent over the years, cutting across different political regimes. Despite the change in leadership, the pace of borrowing has not slowed.
Opposition parties have repeatedly criticised the state’s rising debt, questioning its financial management. However, the government maintains that fresh loans are necessary to service existing liabilities and meet ongoing expenditure.
- PTC NEWS
