Punjab Government to take Rs. 8500 crore loan
Babushahi Network
Chandigarh, July 1, 2025: The Punjab Government will raise a loan of Rs 8,500 crore in the second quarter of the ongoing fiscal year (July to September). This has been disclosed by The Tribune in a report.
Report said that the market borrowings to be undertaken by the state government have been approved by the Reserve Bank of India (RBI).
Report further stated that the cash-strapped government would raise a loan of Rs 2,000 crore in July, Rs 3,000 crore in August and Rs 3,500 crore in September. After these borrowings, the total loan raised by state government during this fiscal year will go up to Rs 14,741. 92 crore. In April and May, the government had raised Rs 6,241.92-crore loans.
It said that the state government targets to raise Rs 34,201.11-crore loans this year. By the end of March 2026, the state’s total debt is likely to touch Rs 4 lakh crore. This means that each Punjabi (considering the state population to be 3 crore) will have an average debt of Rs 1.33 lakh by the end of this fiscal year.
Report also said that the borrowings were within the permissible limit set by the RBI. It added that till March 2024, the state’s total outstanding debt stood at Rs 3.82 lakh crore, which is over 44 per cent of the Gross State Domestic Product (GSDP).
Report also quoted Union Minister of State for Finance Pankaj Chaudhary’s report tabled in Parliament which had expressed concern that Punjab’s debt-to-GSDP ratio was the second highest in the country. During the first two months of this fiscal year (April and May), the state’s revenue deficit was Rs 5,513.65 crore. The state received Rs 12,903. 04 crore in revenue receipts, while the revenue expenditure stood at Rs 18,416.69 crore.