Punjab Heading Towards Financial Crisis, ₹1,500 Crore Loan Raises Alarm: Randhawa

Chandigarh, April 7, 2026: Former Deputy Chief Minister and Member of Parliament Sukhjinder Singh Randhawa has expressed serious concern over the Punjab government taking a loan of ₹1,500 crore at the very beginning of the new financial year. He stated that with this fresh borrowing, the total debt of the state has crossed ₹4 lakh crore and is likely to reach around ₹4.75 lakh crore by the end of the year. He alleged that the Aam Aadmi Party government is pushing Punjab towards a financial emergency. Development works have stalled, and the debt burden per citizen has risen to over ₹1.26 lakh.
Randhawa said that according to official figures, the state’s debt has increased by more than ₹1.33 lakh crore during the tenure of the Aam Aadmi Party government. A major portion of this borrowing is being used to service past liabilities and to fund free electricity and subsidies. To fulfill the promise of 300 units of free electricity, the government is providing over ₹20,400 crore annually as subsidy to the power utility.
He further expressed concern that Punjab’s farmers, who are considered the backbone of the nation, have now become the most indebted on a per-farmer basis in the country. As per available data, more than 37.62 lakh farmer account holders collectively owe over ₹1.04 lakh crore in agricultural loans. He remarked that Punjab, once known as the “golden bird” and a leading producer of food grains, now has its farmers trapped in debt.
Criticizing the government’s priorities, Randhawa alleged that instead of focusing on public welfare, funds are being spent on political showmanship. He claimed that the loans are being used for national-level advertisements and frequent chartered flights by the Chief Minister, rather than for genuine development. He asserted that Chief Minister Bhagwant Mann cannot mortgage Punjab’s future for PR stunts. The government must work towards reducing the state’s debt burden.
Financial experts have also warned that continuous borrowing could put additional pressure on the state’s finances, leaving fewer resources for essential services such as healthcare, education, and infrastructure. He emphasized the need for greater transparency in the utilization of borrowed funds and urged the government to focus on economic stability and public welfare so that development work can progress and the per capita debt burden can be reduced.