Punjab BJP flags AAP govt's ₹49,900 crore borrowing plan, rising debt
Synopsis
Punjab BJP chief Kewal Singh Dhillon has laid out a damning borrowing trail: ₹24,000 crore in 2022-23, ₹34,201 crore in 2024-25, and a planned ₹49,900 crore in 2025-26 — even as Finance Minister Cheema touts rising GST and excise revenues. With Punjab's debt projected to hit ₹4.48 lakh crore by 2026-27, the gap between AAP's fiscal narrative and its borrowing reality is becoming harder to ignore.
Key Takeaways
BJP Punjab chief Kewal Singh Dhillon accused the AAP government of driving Punjab into a fiscal crisis through continuous borrowing.
A Finance Department notification dated 10 July authorised a fresh ₹1,000 crore loan, contradicting claims of strong revenue growth.
Annual borrowings rose from ₹24,000 crore in 2022-23 to ₹34,201 crore in 2024-25 ; planned borrowings for 2025-26 stand at ₹49,900 crore .
Punjab's outstanding debt has grown from ₹2.82 lakh crore in 2022 to approximately ₹4.17 lakh crore , with projections of ₹4.48 lakh crore by 2026-27 .
Dhillon demanded Chief Minister Bhagwant Mann and Finance Minister Harpal Singh Cheema publish a credible debt-reduction roadmap.
Kewal Singh Dhillon, State President of the Bharatiya Janata Party (BJP) in Punjab, on Sunday accused the Bhagwant Mann-led Aam Aadmi Party (AAP) government of pushing the state into a deepening fiscal crisis through relentless borrowing, arguing that the promise of a 'prosperous Punjab' has instead yielded what he called a 'kangal (bankrupt) Punjab'.
The Borrowing Trail
Dhillon pointed to a Finance Department notification dated 10 July authorising a fresh loan of ₹1,000 crore as evidence contradicting Finance Minister Harpal Singh Cheema's repeated public claims of strong revenue growth. According to Dhillon, the state's annual borrowings have escalated sharply: approximately ₹24,000 crore in 2022-23, nearly ₹28,000 crore in 2023-24, and ₹34,201 crore in 2024-25.
For the current financial year 2025-26, the government had already borrowed over ₹20,770 crore by January, against a total planned borrowing of ₹49,900 crore — with the latest ₹1,000 crore tranche added on top.
Debt Burden on Punjab
Punjab's outstanding debt, according to Dhillon, has climbed from roughly ₹2.82 lakh crore in 2022 to approximately ₹4.17 lakh crore at present, with projections suggesting it could reach ₹4.48 lakh crore by 2026-27. Critics argue this trajectory places a disproportionate burden on future generations rather than building durable economic capacity.
BJP's Challenge to AAP's Revenue Claims
Dhillon noted that Finance Minister Cheema frequently cites rising Goods and Services Tax (GST), Value-Added Tax (VAT), and excise collections to project fiscal health. The BJP leader argued, however, that accelerating borrowings tell a contradictory story. 'If Punjab has repeated revenue growth in the past four years, why is the government repeatedly approaching the market for fresh loans?' Dhillon asked.
This is not the first time the BJP has raised alarms over Punjab's debt trajectory. The opposition has consistently questioned the AAP government's fiscal management since it assumed office in 2022, particularly as the state funds welfare schemes including free electricity and education outlays.
BJP's Demands
Dhillon demanded that Chief Minister Bhagwant Mann and Finance Minister Harpal Singh Cheema place the state's true fiscal position before the public and present a credible roadmap for debt reduction, rather than continuing to rely on fresh market borrowings. The AAP government had not responded to the BJP's statements at the time of publication.
With Punjab's debt-to-GSDP ratio under growing scrutiny, the fiscal debate is likely to intensify ahead of the state budget cycle.
Point of View
VAT, and excise revenues are genuinely growing, why are annual borrowings nearly doubling in three years? Punjab's fiscal stress predates AAP — the state has carried a heavy debt load for over a decade — but the scale of planned borrowings for 2025-26 at ₹49,900 crore is a significant escalation. The AAP government's silence on a credible debt-reduction path, rather than the borrowings alone, is what gives the opposition traction. Until Chandigarh publishes a transparent debt-sustainability framework, the 'kangal Punjab' charge will continue to find an audience.
NationPress
13 Jul 2026
Frequently Asked Questions
How much has Punjab's debt grown under the AAP government?
Punjab's outstanding debt has risen from approximately ₹2.82 lakh crore in 2022 to around ₹4.17 lakh crore currently, according to BJP Punjab chief Kewal Singh Dhillon. Projections cited by the BJP indicate the figure could reach ₹4.48 lakh crore by 2026-27.
What is Punjab's total planned borrowing for 2025-26?
The AAP government has planned total borrowings of ₹49,900 crore for the financial year 2025-26, according to the BJP. The state had already borrowed over ₹20,770 crore by January 2025, with a fresh ₹1,000 crore tranche authorised on 10 July.
Why is the BJP questioning Punjab's borrowings despite revenue growth claims?
BJP Punjab president Kewal Singh Dhillon argues that Finance Minister Harpal Singh Cheema's repeated claims of rising GST, VAT, and excise revenues are contradicted by the government's accelerating market borrowings. The BJP contends that genuine revenue growth should reduce, not increase, dependence on fresh loans.
What has the BJP demanded from the Punjab government?
Dhillon has demanded that Chief Minister Bhagwant Mann and Finance Minister Harpal Singh Cheema publicly disclose the state's true fiscal position and present a credible roadmap for reducing debt, rather than continuing to rely on repeated market borrowings.
How do Punjab's annual borrowings compare year on year?
According to the BJP, Punjab borrowed approximately ₹24,000 crore in 2022-23, nearly ₹28,000 crore in 2023-24, and ₹34,201 crore in 2024-25. Planned borrowings for 2025-26 stand at ₹49,900 crore, marking a sharp upward trajectory over three years.
