Chandigarh (National Times): The Punjab government plans to borrow a total of Rs 8,500 crore over the next three months, from July to September 2025, following approval from the Reserve Bank of India (RBI). The move comes amid concerns over the state’s mounting debt, which has already reached Rs 3.82 lakh crore as of March 31, 2025, amounting to more than 44% of the state’s Gross Domestic Product (GDP).
Officials estimate that by March 31, 2026, the total debt burden could exceed Rs 4 lakh crore, which translates to a debt of over Rs 1.25 lakh per person in Punjab.
Detailed Borrowing Schedule
According to official documents, the borrowing plan for the July–September quarter is as follows:
| Loan Date | Amount (Rs crore) |
|---|---|
| 8 July | 500 |
| 15 July | 500 |
| 22 July | 500 |
| 29 July | 500 |
| 5 August | 1,500 |
| 12 August | 1,000 |
| 19 August | 500 |
| 2 September | 1,500 |
| 9 September | 500 |
| 23 September | 500 |
| 30 September | 1,000 |
| Total | Rs 8,500 crore |
Mounting Fiscal Pressure
The escalating borrowing requirement underscores Punjab’s widening fiscal deficit and rising expenditure commitments, especially in the areas of welfare schemes, subsidies, and administrative costs. Economists have raised concerns that this growing dependence on debt could strain the state’s long-term financial stability, particularly if revenue mobilization does not improve significantly.
Despite borrowing plans being routine for Indian states, Punjab’s high debt-to-GDP ratio is one of the highest in the country, making the financial roadmap ahead even more critical.
Expert Voices
Experts warn that unless the state improves its revenue generation and cuts down on non-essential spending, the ballooning debt could lead to credit downgrades, impact developmental spending, and increase interest payments in the coming years.
Meanwhile, the Punjab government maintains that the borrowing is well within its fiscal responsibility limits and is necessary to meet developmental and capital expenditure targets.
As the debt burden rises, eyes will be on the upcoming state budget and financial policies to see how the government plans to strike a balance between welfare commitments and fiscal discipline.
