Rising Debt in Punjab a Matter of Concern: Balwinder Singh Dhaliwal

Chandigarh, April 7, 2026: Retired IAS officer and MLA Balwinder Singh Dhaliwal has expressed deep concern over the Punjab government taking a loan of ₹1,500 crore within the very first week of the financial year. He stated that the continuously increasing debt of the state is a warning sign of a serious financial crisis in the near future and cannot be ignored.
He further said that Punjab’s total debt has already crossed ₹4 lakh crore, and if the current pace continues, it could reach an even more dangerous level by the end of the year. This situation poses a serious challenge to the state's economic stability.
Dhaliwal clarified that borrowing is not inherently wrong, but it should be utilized for productive and developmental purposes. If a major portion of the borrowed funds is being spent on subsidies, pending dues, or non-essential expenditures, it becomes a burden for the future.
He also raised questions over schemes like 300 units of free electricity, stating that such policies have serious long-term financial implications. Providing heavy subsidies every year puts additional pressure on the state’s financial resources, which in turn affects investment in crucial sectors like education, healthcare, and infrastructure.
Speaking about the agriculture sector, he said that farmers in Punjab are already burdened with heavy debt. If the state’s financial condition weakens, it will directly impact farmers and the rural economy.
Dhaliwal emphasized that the government should ensure transparency in financial management and clearly inform the public about where the borrowed money is being spent. He added that instead of focusing only on short-term popular decisions, the government must prioritize long-term economic reforms.
He appealed to Chief Minister Bhagwant Singh Mann to adopt responsible financial policies, keeping the state’s economic future in mind, and to take concrete steps to reduce dependence on debt.
In conclusion, Dhaliwal stated that maintaining Punjab’s prosperity requires fiscal discipline, accountability, and a balanced development policy, so that future generations are not burdened with excessive debt.