At Rs 1.23 lakh per citizen, Punjab records highest per capita debt in country; state borrowing faster than it is earning!
PTC Web Desk: Punjab has officially become the most indebted state in India on a per capita basis, according to a new report by PRS Legislative Research. The findings show that every resident of Punjab now carries a debt burden of Rs 1,23,274, the highest in the country. Kerala follows closely with Rs 1,20,444 per person, while Maharashtra, Gujarat and Bihar trail far behind.
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These numbers highlight a deeper and long-standing financial crisis in Punjab. For years, the state has been borrowing heavily to fund daily expenses rather than investing in long-term growth. Economists often warn that when a state’s borrowings exceed its income, it slowly loses the ability to manage essential services and development projects. Unfortunately, Punjab’s situation seems to be moving in that direction.
The report also points out that Punjab’s public debt now crosses 30% of its Gross State Domestic Product (GSDP)—a level considered risky by financial experts. The Comptroller and Auditor General (CAG) recently observed that state-level debt across India has tripled in the last decade, reflecting a growing national concern over fiscal stability.
For Punjab, however, the warning bells are louder. The state has the highest debt-to-GSDP ratio at 40.35%, much higher than other high-debt states such as Himachal Pradesh, West Bengal, Rajasthan and Kerala. This means Punjab is spending a large share of its earnings just to repay past loans.
What makes the situation worrying is that despite such heavy borrowing, Punjab has not been able to expand its revenue sources. Industries have slowed, employment opportunities remain limited and agricultural income is stagnant. As a result, the debt load keeps increasing while economic growth does not match it.
In simple terms, the state is borrowing faster than it is earning.
Experts believe that if Punjab wants to reverse this trend, it must focus on strengthening its economic base, reviving industries, improving investment climate and creating sustainable job opportunities. Otherwise, the growing debt burden may eventually limit the state’s ability to spend on development, social welfare and essential public services.
- With inputs from agencies
