Punjab debt rises: Govt borrows Rs 1,300 cr again in April, Rs 2,800 crore taken in just 20 days; debt crosses Rs 4 lakh crore
Punjab debt The Punjab Government has once again turned to the open market for funds, raising Rs 1,300 crore on Tuesday, April 21, as part of its ongoing borrowing cycle. This marks the second loan raised within a span of just 20 days.
Earlier, on April 2, the state had secured Rs 1,500 crore through a similar route. With this, total borrowings in the first month of the current financial year have reached Rs 2,800 crore. The latest loan has a repayment tenure of 12 years and is scheduled to be cleared by April 22, 2038. 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.
Officials said the borrowing process was initiated through a notification issued on April 17, inviting bids from banks. The government will finalise the lender offering funds at the lowest interest rate under the bond-based system.
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.
Punjab’s total outstanding debt has already crossed Rs 4 lakh crore, with the state reportedly accessing loans multiple times each month to manage its fiscal commitments.
- PTC NEWS
