AAP govt pushed Punjab under fresh ₹6,500-cr debt in 2 months: Pargat

Raising questions over the economic policies of the AAP government in Punjab, Pargat Singh said the government had already taken a loan of ₹4,000 crore in April and now another ₹2,500-crore loan was being raised this month

Jalandhar Congress MLA from Jalandhar Cantonment Pargat Singh on Tuesday alleged that the Aam Aadmi Party-led state government had pushed Punjab under a debt burden of ₹6,500 crore in less than two months.

The Congress MLA said this new borrowing exposes the AAP government’s financial failure and irresponsible approach. (HT File)

Raising questions over the AAP government’s economic policies in Punjab, Singh said the government had already taken a loan of ₹4,000 crore in April and now another ₹2,500-crore loan was being raised this month.

“This new borrowing exposes the government’s financial failure and irresponsible approach. This is not merely a matter of financial figures, but one that directly impacts Punjab’s development, employment and the lives of ordinary people,” he said in a statement.

“It is also being claimed that the government is preparing to take an additional ₹2,500 crore loan in June. Media reports suggest the government is planning to raise nearly ₹40,000 crore in fresh debt during the financial year 2026-27,” he said.

Pargat said chief minister Bhagwant Mann and finance minister Harpal Singh Cheema should clarify the situation regarding the repeated borrowings and Punjab’s financial condition. “The government must explain where the thousands of crores borrowed recently have been spent. If this money is being used only for subsidies and repayment of old loans, it will push the state deeper into economic crisis,” he said.

“The Punjab government is taking fresh loans every year to repay old debts and interest. A large portion of every new loan is being spent on servicing previous debts and interest payments. If this trend continues, Punjab will head toward a severe financial crisis,” he said.