Punjab heading towards financial crisis, Rs 1,500 crore loan raises alarm: Sukhjinder Randhawa
Over ₹1.33 lakh crore debt added during AAP tenure; CM Bhagwant Mann criticised over spending priorities
Babushahi Bureau
Chandigarh, April 7, 2026: Former Deputy Chief Minister and Member of Parliament Sukhjinder Singh Randhawa has raised serious concerns over Punjab’s financial health following the state government’s decision to take a fresh loan of ₹1,500 crore at the start of the new financial year.
Randhawa said that with this borrowing, the state’s total debt has crossed ₹4 lakh crore and could touch nearly ₹4.75 lakh crore by the end of the year. He alleged that the Aam Aadmi Party-led government is pushing Punjab towards a financial emergency, with development works slowing down and per capita debt rising to over ₹1.26 lakh.
Citing official data, he claimed that the state’s debt has increased by more than ₹1.33 lakh crore during the tenure of the AAP government. A significant portion of the borrowed funds, he said, is being used to service existing liabilities and to finance subsidies, including the promise of 300 units of free electricity, which costs over ₹20,400 crore annually.
Expressing concern over the agrarian sector, Randhawa said Punjab’s farmers—considered the backbone of the nation—have become the most indebted on a per-farmer basis. According to available figures, over 37.62 lakh farmer account holders collectively owe more than ₹1.04 lakh crore in agricultural loans. He noted that Punjab, once known as the “golden bird” and a leading food grain producer, is now witnessing its farmers trapped in mounting debt.
Criticising the government’s priorities, Randhawa alleged that instead of focusing on public welfare, funds are being diverted towards political publicity. He claimed that loans are being used for national-level advertisements and frequent chartered flights by the Chief Minister rather than for development.
“Punjab’s future cannot be mortgaged for PR stunts,” he said, asserting that the government must take concrete steps to reduce the state’s debt burden.