Punjab government seeks additional Rs 8,500-cr loan during July-Sept
PTC News Desk: The Punjab Government will raise a loan of Rs 8,500 crore in the second quarter of the ongoing fiscal year (July to September).
According to a report by The Tribune, the cash-strapped government would raise a loan of Rs 2,000 crore in July, Rs 3,000 crore in August and Rs 3,500 crore in September.
For the current fiscal year, the state government has a total repayment obligation of Rs 14,74,192 crore. In April and May, the government had raised Rs 6,241.92-crore loans. The state government targets to raise Rs 34,201.11-crore loans this year. By the end of March 2026, the state’s total debt is likely to touch Rs 4 lakh crore.
The state is grappling with a significant debt burden inherited allegedly from previous governments and has argued that it requires additional funds to meet its financial obligations.
Borrowing Plan
July 8 Rs 500 cr
July 15 Rs 500 cr
July 22 Rs 500 cr
July 29 Rs 500 cr
Aug 5 Rs1,500 cr
Aug 12 Rs 1,000 cr
Aug 19 Rs 500 cr
Sept 2 Rs1,500 cr
Sept 9 Rs 500 cr
Sept 23 Rs 500 cr
Sept 30 Rs 1,000 cr
Eminent economist RS Ghuman said though the borrowing by the state was within the permissible limit set by the RBI, keeping in view the heavy and unsustainable debt, the state needed to draw a roadmap to reduce its debt. “The state government must think of lowering the debt burden in the medium and long run. Only then will Punjab have money to spend on capital asset creation. As of now, the state’s investment-GDP ratio is much less than the national average, indicating serious investment deficiency in the state,” he said.
- PTC NEWS
