The issue of Punjab’s escalating debt crisis has intensified as the opposition parties in the State continue to direct sharp criticism at the ruling Aam Aadmi Party (AAP) Government. The controversy erupted following a letter from Punjab Governor Banwarilal Purohit to the Chief Minister Bhagwant Mann, in which he raised concerns about the state's mounting debt and sought clarification on its utilization.
Punjab BJP president Sunil Jakhar on Sunday took aim at the Bhagwant Mann Government, accusing it of pushing the state to the brink of a “financial calamity”. Jakhar emphasized that Punjab's debt had surged by a staggering Rs 50,000 crore since the AAP Government came to power a year and a half ago. He argued that the unprecedented increase in debt had raised serious questions about the government's fiscal management.
Also weighing in on the issue, senior Congress leader Navjot Singh Sidhu asserted that Punjab's debt had reached an “unsustainable level”. Sidhu attributed the rapid growth in the state's debt to what he described as the “continued corruption and vote bank politics of the AAP”. His remarks echoed the sentiment that the state's financial situation had been adversely affected by the government's populist policies.
Only a day before, the Congress Legislative Party (CLP) leader and the Leader of Opposition in Vidhan Sabha Partap Singh Bajwa had hit out at the Bhagwant Mann dispensation demanding a special audit of the borrowings. At the same time, the Shiromani Akali Dal president Sukhbir Singh Badal had also asked if the money was spent only on “self-promotion” and paying the “air travel and hotel bills” of Delhi Chief Minister Arvind Kejriwal.
Notably, Purohit, in a letter to Chief Minister Bhagwant Mann on Friday, had said that he learnt that “the debt of Punjab rose by about Rs 50,000 crore during your regime”. “Details of utilization of this huge amount may be furnished so that I will be able to convince the Prime Minister that money has been properly utilized,” he wrote in response to the Chief Minister’s letter seeking Purohit’s intervention to take up the issue of pending RDF with the Prime Minister and the President.
The continuous critique of the Chief Minister Bhagwant Mann follows his recent appeal to the Governor for assistance in securing pending RDF funds amounting to Rs 5,637 crore from the Centre. The Governor advised patience in the “sub-judice” matter, pending a Supreme Court decision on the matter.
Punjab's mounting debt-to-GDP ratio — nearing 50 per cent, far exceeding the national average — has become a central point of concern for both opposition parties and the public. The state's financial stability has come under scrutiny, with questions raised about the utilization of borrowed funds and the long-term consequences of the debt accumulation.
The controversy surrounding Punjab's rising debt has dominated the political discourse in the State, with opposition parties positioning themselves as guardians of fiscal responsibility. AAP government, which came to power with promises of badlav (change) and transparency, now faces growing pressure to provide a detailed account of how the borrowed funds have been allocated.
As the opposition parties continue their critique and demands for accountability, Chief Minister Bhagwant Mann and his administration are under increasing scrutiny to navigate the challenging financial landscape and reassure the public about Punjab's economic stability. The issue of Punjab's debt is expected to remain a critical point of contention in the state's political arena, with far-reaching implications for its financial well-being.
Jakhar Warns of 'Financial Calamity'
Slamming the AAP Government, Punjab BJP president Sunil Jakhar on Sunday accused it of pushing the state on the brink of “financial calamity” with an addition of Rs 50,000 crore debt since coming to power year-and-a-half ago.
“In just last four months, from April till July-end this year, the AAP (Aam Aadmi Party government in Punjab) has already taken Rs 11,718 crore as loan,” he said, claiming that if unchecked, AAP government’s “misrule” would crush Punjab with another burdensome Rs 1.75 lakh crore of debt till the end of its term. The total debt of the state at present stands at Rs 2.82 lakh crore, he said.
Citing a report of the office of the principal accountant-general, he claimed that out of the Rs 11,718 crore, just Rs 900 crore was spent constructively, and the “rest has gone up in smoke at the whims and fancies of the incumbent dispensation”.
The present government, Jakhar alleged, “thrives on fake propaganda, advertisements and personal aggrandizement”.
“I thank Governor Sahib for setting the proverbial cat amongst the pigeon by asking from Bhagwant Mann ji about the utilization details of about Rs 50,000 crore which this present government has burdened Punjabis with,” Jakhar said.
“Given the track record, I am not very hopeful of a genuine response by the AAP leadership to very apt queries raised by the Governor,” he said, adding that “thanks to the Governor's missive, Punjabis of all hues have started asking – ‘where is the money, Mann Sahib’?”
Jakhar alleged that both the Chief Ministers of Delhi and Punjab befooled the people by their tact of lying unabashedly.
Targeting Delhi Chief Minister and AAP national convener Arvind Kejriwal, the BJP leader asked, “Where are those Rs 40,000 crore additional revenue to be generated from transparent auctioning of sand pits and sale of alcohol which Kejriwal ji used to scream about during the (Punjab) assembly elections."
Sidhu Sounds Alarm, Accuses AAP Govt of Economic Mismanagement
In a scathing critique of the financial state of Punjab, Punjab congress’ former president Navjot Singh Sidhu on Sunday raised concerns over the state's growing debt crisis. Sidhu directed his criticism towards Bhagwant Mann, the stand-up comic turned Chief Minister of Punjab, highlighting the key issues in his seven-point assessment.
In his post on ‘X’, Sidhu pointed out that Punjab's debt-to-GDP ratio has soared to nearly 50 per cent, signaling a perilous economic situation for the state. Citing Governor’s letter, he said that the debt is expected to rise by Rs 70,000 crores in two years indicating that “the economic crisis”.
Sidhu attributed the mounting debt to systemic corruption and the populist policies of the AAP government, accusing them of promoting freebies. He highlighted the Punjab State Power Corporation Limited's (PSPCL) substantial borrowings from banks, which exceed Rs 18,000 crores, along with significant loans for digital meter installations, amounting Rs 9,641 crore.
“In addition to this, arrears of subsidy and outstanding bills from the Punjab Government are at Rs 9,020 crore and Rs 2,548 crore, respectively. PSPCL today is mortgaged and sold out,” he said.
The former cricketer also questioned the lack of action against those illegally occupying over 25,000 acres of land around Chandigarh, suggesting a continued monopoly by the cable mafia and other influential figures. He called for accountability and transparency in these matters.
Sidhu also accused the AAP government of undermining revenue generation through its handling of excise policies and sand mining. He alleged that certain individuals had exclusive access to licenses, resulting in rampant illegal mining.
Also citing a report from the Comptroller and Auditor General (CAG) in March 2023, which warned of impending financial instability in Punjab if current governance practices persist, Sidhu expressed concern that the situation could deteriorate even further.
Sidhu decried the burden placed on the people of Punjab, with each Punjabi carrying a debt of Rs 1.20 lakhs. He argued that this figure continues to rise daily, placing significant pressure on the state's residents.
The Congress leader challenged the Government's revenue model, questioning whether the state would be sustained through borrowings or income. He emphasized that the current approach, which seemingly allows revenue to be siphoned off by corrupt individuals, could lead to a catastrophic situation.
CM Lacks Transparency in Utilization of Rs 50k cr Loan: Sukhbir
Meanwhile, SAD president Sukbhir Singh Badal expressed concern over the lack of transparency in the utilization of a Rs 50,000 crore loan taken by the AAP-led Punjab Government in the past 18 months, accusing the Chief Minister and AAP of diverting funds for its nationwide political expansion.
“Pained to see how the State exchequer is being looted to expand the wings of @AamAadmiParty and its leader @ArvindKejriwal across the country. Punjab CM @BhagwantMann should tell why he is not disclosing how the Rs 50,000 crore loan taken by the @AAPPunjab govt in the past 18 months was "utilised". Since he has outrightly refused to give the details of the same to the Punjab Governor, it's clear that he doesn't want Punjabis to know how his govt has stopped all development and even stopped social welfare schemes so that it can release hundreds of crores for advertisements in other States,” said Sukhbir in his post on ‘X’.