The Punjab government is set to raise a loan of ₹13,900 crore during the second quarter of the 2026-27 financial year. This has been outlined in the indicative calendar issued by the Reserve Bank of India (RBI) regarding market borrowings by states and Union Territories for the July-September 2026 quarter.
Earlier, Punjab had planned to borrow ₹9,500 crore during the first quarter but ended up borrowing approximately ₹7,800 crore. It is worth noting that the state government aims to provide a financial boost to every scheme ahead of the upcoming assembly elections in Punjab.
The ‘Mawan Dhiyan Da Satkar Yojana’ is launching on July 1, with a budget allocation of ₹9,300 crore for the current financial year. Opposition parties in Punjab have begun targeting the state government over the issue of debt, and it is likely to become a key election issue.
Punjab government to raise massive debt in the second quarter
According to reports, the Punjab government will raise ₹5,500 crore in debt during the month of July within the second quarter. Similarly, the government will borrow ₹3,500 crore in August and ₹4,000 crore in September. This borrowing is primarily intended to cover capital expenditure for planned schemes and development projects.
According to the RBI, states and Union Territories across the country are set to raise a total of ₹3.18 lakh crore during the second quarter, with Punjab’s share standing at 4.35 percent. The RBI data indicates that during the second quarter of the current financial year, the neighboring Haryana government will raise ₹19,000 crore in debt, while the Himachal Pradesh government will borrow ₹2,100 crore. It is worth noting that Punjab’s total debt crossed ₹2.82 lakh crore in 2022, and it is projected to reach ₹4.47 lakh crore by March 31, 2027. State Finance Minister Harpal Singh Cheema has consistently maintained that the new debt is being raised solely to repay the debt inherited from the previous administration.
He also speaks of financial reforms. It is further argued that the borrowing remains within prescribed limits. In addition to the ‘Mavan Dhiyan Satkar Yojana’, the Punjab government is providing free rations to every household under the ‘Meri Rasoi’ scheme. Furthermore, the commencement of salary payments to Sarpanches from August 15 is set to increase the annual expenditure by approximately ₹158 crore.
