Chandigarh: Punjab govt has decided to raise fresh loans of Rs 1,500 crore, a move that has drawn criticism from the opposition. The first part consists of state govt stock with a 4-year tenure for an aggregate amount of Rs 1,000 crore. The remaining portion involves Punjab govt stock with a 13-year tenure for an aggregate amount of Rs 500 crore.According to official gazette notifications published by the finance department dated June 25, the state govt will participate in a Reserve Bank of India (RBI) auction scheduled for June 30, to clear the new debt. The objective of the loan is to finance part of the capital expenditure of plan schemes and other development schemes currently under execution.The borrowing is split into two distinct tenures and the two notifications clarify that the auctions will be conducted electronically by the RBI at its Mumbai office on June 30, using the E-Kuber banking system, following mandatory consent obtained from the Central govt under Article 293(3) of the Constitution of India.This move has triggered sharp criticism from the opposition benches. Leader of the Opposition Partap Singh Bajwa took to social media accusing the AAP govt of reckless financial mismanagement. Sharing copies of the official documents, Bajwa said Punjab is sinking deeper into debt under the AAP govt, raising another Rs 1,500 crore in fresh loans through RBI auctions on June 30 alone.Apart from the market borrowings, Bajwa levelled allegations regarding the state’s intent to liquidate public assets to stay afloat. He claimed that after emptying the state treasury through financial mismanagement, the govt is reportedly attempting to auction precious panchayat land, including 43 kanal 3 marla in Daidi village, Mohali, to fund its expenses. He alleged that Punjab’s 7.15 lakh acres of panchayat land belong to villages, communities, and future generations rather than being assets to be sold for political survival.Punjab Congress president Amarinder Singh Raja Warring also hit out at the govt, alleging that Punjab’s total debt burden has now crossed approximately Rs 4.19 lakh crore with this fresh borrowing of Rs 1,500 crore. Warring criticized the repetitive pattern of notifying fresh borrowings through govt securities every few weeks while Punjab continues to struggle with poor irrigation, inadequate healthcare, crumbling infrastructure, rising unemployment, and mounting financial stress.
