The Punjab government will raise a fresh loan of Rs 1,500 crore on July 1, marking its second major market borrowing in June, as it balances welfare promises with fiscal discipline ahead of the rollout of its flagship scheme, Mawan Dhiyan Satkar Yojana.
Borrowing Details
This follows a Rs 1,000-crore loan earlier in June. The state has already borrowed Rs 5,300 crore in the first two months of the current financial year 2026-27 — Rs 2,800 crore in April and Rs 2,500 crore in May. Including the July loan, Punjab’s total debt in the first quarter will rise to Rs 7,800 crore.
Political Reaction
Punjab Congress president Amrinder Singh Raja Warring criticised the Aam Aadmi Party government for the fresh borrowing. “It is a classic case of robbing Peter to pay Paul. I am sure AAP will leave a bankrupt Punjab for its successor government,” he said, warning that the move would push Punjab towards bankruptcy.
Context
The borrowing comes as the state prepares to launch the Mawan Dhiyan Satkar Yojana, a welfare scheme aimed at providing financial support to women. The government faces pressure to meet welfare commitments while managing its fiscal deficit, which has been a point of contention with opposition parties.
