Punjab government to raise fresh loan of Rs 1,500 crore

The state government, facing pressure to balance welfare promises and financial discipline, will take a new loan of ₹1,500 crore on July 1. This move comes ahead of the rollout of its flagship welfare scheme, the Maawan Dhyan Satkar Yojana.

This will be the second major market loan in June, following a ₹1,000 crore loan taken earlier this month. Punjab has already borrowed ₹5,300 crore in the first two months of the current financial year 2026-27 (₹2,800 crore in April and ₹2,500 crore in May). Including the July loan, the state’s total debt in the first quarter will rise to ₹7,800 crore.

Punjab Congress President Amarinder Singh Raja Warring criticized the Aam Aadmi Party government for the new loan. He warned that this move would push Punjab towards bankruptcy. “This is a classic case of robbing Peter and paying Paul. I’m sure the AAP will leave a bankrupt Punjab for its next government,” he said.