Pushing Punjab into financial ruin with reckless borrowing: Congress slams AAP govt

Chandigarh, July 1 (PTI) Punjab Congress leader Partap Singh Bajwa on Tuesday lashed out at the AAP government, accusing it of pushing the state into "financial ruin with reckless borrowing." In a statement issued here, Bajwa targeted AAP national convener Arvind Kejriwal, saying despite boasting about his revenue management skills, he "failed" to support Punjab in its hour of need.

"The AAP government has drowned Punjab in debt over its three-year tenure. It now plans to borrow Rs 8,500 crore in the second quarter (July-September) of this fiscal year -- Rs 2,000 crore in July, Rs 3,000 crore in August, and Rs 3,500 crore in September. This reckless borrowing shows no regard for the state's financial health," Bajwa said.

Noting that Chief Minister Bhagwant Mann appointed former IMF senior economist Arbind Modi as chief adviser and former World Bank economist Sebastian James as adviser to revive Punjab's struggling economy, Bajwa questioned the effectiveness of the appointments.

"Is this the expertise that globally renowned economists are offering the AAP government? Even AAP leader Arvind Kejriwal, who often boasts about his revenue management skills, has failed to support Punjab in its hour of need," he said.

Bajwa noted that when AAP assumed power in 2022, Punjab's outstanding debt stood at Rs 2,81,773 crore. By the end of the 2025-26 fiscal year, the debt is projected to reach Rs 4 lakh crore, with economists estimating it could climb to Rs 4,50,000 crore by 2026-27, the final year of AAP's term.

"The people of Punjab will bear the burden of this massive debt through heavy taxation. The AAP government will vanish from Punjab long before the next assembly elections," Bajwa said.

Earlier in the day, Punjab Finance Minister Harpal Singh Cheema, while replying to a query on raising more debt, said the state has to make interest payments of Rs 25,000 crore and principal payments of Rs 18,200 crore on legacy debt -- availed by the previous SAD-BJP and Congress-led state governments -- in 2025-26, while planning to borrow Rs 49,900 crore, despite Rs 13,000 crore in deductions by the central government.

He also said that the state government plans to borrow Rs 8,500 crore to meet the redemption obligations of over Rs 3,500 crore for legacy debt in the second quarter of the current financial year alone.

Cheema said Punjab's fiscal management is on a strong footing, with the state government taking proactive steps to manage its debt obligations. PTI CHS RHL