AAP government pushes Punjab into a record debt trap, every newborn burdened with ₹1.23 lakh debt: Pargat Singh
In four years, the government has imposed ₹1.5 lakh crore of new loans on Punjab, plunging the state into an economic emergency
City Air News
Nov 27, 2025 07:33
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Punjab lags behind in agriculture and industrial growth; AAP government fails to boost revenue
Chandigarh, November 27, 2025: Punjab, once ranked first in agriculture and prosperity, now ranks first in debt. Expressing deep concern over this alarming situation, former Education Minister and MLA Pargat Singh said that every newborn in Punjab today carries a debt burden of ₹1,23,274. Under the Aam Aadmi Party’s rule, the state’s financial condition has deteriorated to such an extent that an economic emergency-like situation has arisen.
This is a matter of serious concern for every citizen of Punjab. Despite this, the Aam Aadmi Party continues to mortgage the state’s future and take one loan after another to fulfill its populist promises of free facilities. The government must take stringent corrective measures to prevent Punjab from slipping into a full-blown financial emergency.
Pargat Singh said that the Comptroller and Auditor General (CAG) of India recently released a report on state debts, revealing shocking facts. The CAG’s findings show that the collective debt of all 28 states in the country has tripled in recent years. According to the report, Punjab carries the highest debt load, amounting to 40.35 percent of its Gross State Domestic Product (GSDP).
He added that after several decades of successive governments, Punjab’s total debt had reached ₹2.62 lakh crore. However, under the Aam Aadmi Party, the state has borrowed an additional ₹1.20 lakh crore in just three years, and now, in the fourth year, another ₹40,000 crore of new debt has been added.
Pargat Singh said that Punjab’s total debt currently stands at ₹3,82,935 crore, and it is projected to touch ₹4,17,136 crore by the end of the 2025–26 fiscal year. As of the end of 2023, Punjab’s debt was 40.35% of its GSDP—making it the most indebted state in India. If this borrowing trend continues, the total debt could cross ₹5 lakh crore soon.
The former Education Minister stated that these figures raise serious questions about the financial health of the state. Punjab has long been struggling with an agricultural crisis, and its industrial expansion remains limited. Subsidies already exert heavy pressure on the state’s finances. The Aam Aadmi Party is not borrowing for developmental purposes, but rather to fulfill political promises and fund its publicity campaigns, which is an irresponsible misuse of public money.
