Daijiworld Media Network – Chandigarh

Chandigarh, Apr 8: Opposition leaders in Punjab have targeted the Aam Aadmi Party government over rising debt levels, alleging that a fresh borrowing of Rs 1,500 crore will further strain the state’s finances.

Expressing concern, Bikram Singh Majithia of the Shiromani Akali Dal criticised the government led by Chief Minister Bhagwant Mann, questioning its fiscal priorities. He claimed the additional loan would push Punjab’s total outstanding debt beyond Rs 4 lakh crore.

In a statement, Majithia alleged that instead of focusing on fiscal discipline and reducing liabilities, the government continues to rely on borrowings, thereby deepening the state’s financial stress.

He further said the AAP had come to power promising to reduce debt, but in the past four years, it has “done the opposite” by repeatedly taking loans, weakening Punjab’s economic position.

Joining the criticism, Sukhjinder Singh Randhawa of the Indian National Congress alleged that the state is being pushed towards a “financial emergency”.

Randhawa claimed that development works have slowed and that the per capita debt burden has crossed Rs 1.26 lakh. He further alleged that Punjab’s debt has increased by over Rs 1.33 lakh crore during the AAP government’s tenure.

According to him, a significant portion of the borrowing is being used to service past liabilities and fund subsidies, including the free electricity scheme, which he said costs over Rs 20,400 crore annually.

He also criticised the government’s spending priorities, alleging that funds are being diverted towards advertisements and travel instead of development initiatives.

The AAP government has not yet issued a detailed response to the latest allegations.