Punjab being pushed into a debt trap by AAP government; a White Paper should be issued: Sukhjinder Randhawa

Chandigarh, April 9, 2026: Former Deputy Chief Minister of Punjab and Member of Parliament from Gurdaspur, Sukhjinder Singh Randhawa, launched a sharp attack on the financial policies of the Punjab government led by the Aam Aadmi Party, stating that the state is being continuously pushed into a debt trap. He said that raising approximately ₹9,500 crore in just three months reflects the failure of the government’s financial planning. This includes ₹4,000 crore in April, ₹3,000 crore in May, and ₹2,500 crore in June, out of which the first installment of ₹1,500 crore has already been taken. According to media reports, the government plans to borrow around ₹40,000 crore for the financial year 2026–27.
Randhawa warned that if the situation continues, Punjab could head toward a serious financial crisis in the coming years. He demanded that the government immediately release a White Paper on the state’s debt and financial condition so that the public can know the truth. He also cautioned that the future of Punjab’s people will not be sacrificed for short-term politics and irresponsible financial decisions, and if necessary, the issue will be taken to court and raised in Parliament.
He further stated that Punjab is already burdened with heavy debt. According to available financial data, the total debt of the state has crossed ₹4 lakh crore and could soon reach ₹4.47 lakh crore if borrowing continues at this pace.
Randhawa alleged that the Punjab government is following a policy of taking new loans to repay old ones. A significant portion of the new loans is being used to service previous debt and interest payments. He emphasized that this is not merely a matter of numbers, but it has a direct impact on the people of Punjab.
Currently, every individual in Punjab carries an average debt burden of more than ₹1.25 lakh, and this burden is expected to increase further. A major portion of the state budget is spent on salaries, pensions, electricity subsidies, and interest payments on existing debt. According to several reports, over 90% of the budget is consumed by these fixed expenditures, leaving very little for development work.
He also pointed out that the FRBM (Fiscal Responsibility and Budget Management) Act was enacted to ensure financial discipline among states and sets limits on borrowing. The government should adhere to these limits while taking loans.
Randhawa questioned the government on how the thousands of crores borrowed in recent months have been utilized. If the funds are being spent mainly on subsidies and repayment of old debt, it could push the state into a deeper financial crisis.
The former Deputy Chief Minister further accused the government of making large promises for short-term political gains and continuously borrowing to fulfill them. He stated that schemes like free electricity and other subsidies are costing thousands of crores annually, putting immense pressure on the state treasury.