₹2,800 Crore Borrowed in 20 Days: Punjab Headed Towards Financial Emergency, Says Dhaliwal

‘AAP’ Government has Worsened Punjab’s Financial Situation by Continuously Taking Loans; Debt Crosses ₹4.17 Lakh Crore: Dhaliwal

Chandigarh, April 21, 2026: Retired IAS officer and MLA Balwinder Singh Dhaliwal expressed serious concern over the rising financial burden on Punjab and said that due to continuous and rapid borrowing by the Aam Aadmi Party government, Punjab is moving towards a serious financial crisis. He said that conditions resembling a financial emergency exist in Punjab. He added that immediate corrective steps are necessary to prevent further deterioration of Punjab’s financial situation, so as to ensure financial stability for future generations.
He stated that according to available financial data, the Punjab government took a new loan of ₹1,300 crore on 21 April, while earlier on 2 April it had taken a borrowing of ₹1,500 crore. Thus, in the first 20 days of the current financial year, a total of ₹2,800 crore has been borrowed.
Dhaliwal said that Punjab’s total debt has now reached approximately ₹4.17 lakh crore and, if this trend continues, it may increase further. He noted that in recent years, the state’s liabilities have risen rapidly, raising serious questions about long-term financial stability.
He further said that delays in payments across various departments and financial stress continue to persist, including pending employee dues and allocations for development works. According to him, reliance on continuous borrowing for routine expenses reflects a serious imbalance in financial management.
The retired IAS officer added that heavy expenditure on various welfare schemes and subsidies is placing additional pressure on the state’s finances. He said that while welfare schemes are important, they must be balanced within a sustainable financial framework.
MLA Dhaliwal also expressed concern over the financial condition of the agriculture sector, stating that a large number of farmers in Punjab are under heavy debt, which requires immediate and well-planned policy intervention.
He appealed to the state government to present a clear and time-bound roadmap for debt management, increase transparency in public expenditure, and ensure that borrowed funds are primarily used for long-term asset creation and development works.