Punjab govt to investigate reasons behind Rs 3 lakh crore debt, says Bhagwant Mann

Ruchika M. Khanna

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Chandigarh, April 18

Punjab’s public debt is burgeoning at its seams. Thanks to the emphasis on only populism and inability of successive governments to increase its revenues, the state has landed in a soup.

Realising this one month after the Aam Aadmi Party government took over, Chief Minister Bhagwant Mann has now ordered an inquiry into how and where the monies have been spent.

Mann today said successive governments have left the state with a debt of Rs 3 lakh crore. “We will inquire as to where the money was spent and will order recovery into where this money was spent. This was the public money,” he said.

Inquiries made by The Tribune have revealed that between April 2021 and February 2022, the previous government had already borrowed Rs 19393.86 crore. If added to the previous years’ debt of Rs 2.48 lakh crore, the debt would be Rs 2.67 lakh crore.

The government is also learnt to have borrowed from the market and raised state development loans in March, which would lead to the state’s debt zooming to over Rs 2.73 lakh crore, excluding the loans received in lieu of GST compensation.

Over 21 per cent of the state’s annual revenue receipts in 2021-22 have gone in just repayment of the outstanding loan and another 36.9 per cent into payment of salaries and pensions. A look at the past fiscal reveals that the state is borrowing double of what it uses as money to repay interests on loan. This means that other than borrowing to repay outstanding loans, more loans are being taken to meet the committed liabilities. This practically leaves very little for the state for development and providing social security to marginalised sections.