By Satnam Singh Chahal
If a father spends his entire life accumulating property to secure his son's future, and that son, instead of respecting the legacy, begins selling off those assets and recklessly taking loans to fund his luxuries, can he ever be called intelligent or rich? Such a person would rightly be labelled irresponsible, wasteful, and blind to long-term consequences. Unfortunately, this analogy fits disturbingly well with the current financial conduct of the Punjab government. Generations of Punjabis have worked hard to build this state its resources, infrastructure, and reputation. But today, instead of safeguarding that legacy, the government appears determined to mortgage Punjab’s future through unsustainable and ever-growing debt.
As the second quarter of the 2025–26 fiscal year begins, the Punjab government's reliance on loans shows no signs of slowing down. A staggering ₹8, 500 crore is set to be borrowed in just three months — July to September — with loans being raised every week. In July alone, ₹2, 000 crore will be borrowed, followed by ₹3, 000 crore in August and ₹3, 500 crore in September. The pattern of borrowing has become so regular that it now resembles a subscription model — one where the state pays with its financial integrity. By the end of this second quarter, Punjab will have raised a total debt of ₹14, 741.92 crore since April. This includes ₹6, 241.92 crore borrowed in April and May, though June saw a temporary pause. However, this pause now appears to be just a lull before the storm.
The broader picture is even more alarming. By 31 March 2025, Punjab's debt had already ballooned to ₹3.82 lakh crore — a figure that represents over 44% of the state’s total domestic production. And if this trend continues, it is projected that the state will hit the dangerous milestone of ₹4 lakh crore by the end of this fiscal year. For the common citizen, this isn’t just a number. It means that each Punjabi now carries the weight of over ₹1 lakh in debt on their shoulders — a burden they never agreed to bear. The government has set a target of borrowing ₹34, 201.11 crore for this year, and it is well on its way to achieving this disturbing goal.
Adding to the concern, the Union Finance Ministry recently slashed the state’s borrowing limit by ₹16, 477 crore, due to various financial inconsistencies and violations. Although ₹4, 000 crore was later restored, this still reflects the Centre’s distrust and a serious red flag regarding Punjab’s fiscal discipline. Furthermore, the state's revenue deficit in the first two months of this financial year reached ₹5, 513.65 crore. Revenue income stood at ₹12, 903.04 crore, while expenditures shot up to ₹18, 416.69 crore — a clear indicator that Punjab is spending far beyond its means.
The weekly loan schedule itself looks like a financial ticking time bomb: ₹500 crore on July 8, 15, 22, and 29; ₹1, 500 crore on August 5; ₹1, 000 crore on August 12; ₹500 crore on August 19; followed by ₹1, 500 crore, ₹500 crore, ₹500 crore, and ₹1, 000 crore spread across September. This systematic borrowing gives the illusion of control, but in reality, it’s only deepening the abyss. The consequences of such reckless fiscal planning will not only haunt the current generation but also cripple future administrations and citizens.
Economists like RS Spit have already raised concerns, stating that the Punjab government urgently needs a clear and realistic roadmap to reduce the debt burden. Simply borrowing more is not a solution — it is a slow erosion of Punjab’s financial sovereignty. The government must prioritise fiscal reforms, cut unnecessary expenditures, and focus on genuine revenue generation instead of relying on loans to cover deficits.
In conclusion, Punjab today is standing at a critical crossroads. Either it takes bold corrective steps to restore financial discipline, or it continues down this dangerous path where every week brings a new loan and every citizen inherits a growing liability. The people of Punjab deserve transparency, accountability, and above all, a government that doesn’t treat debt as an easy escape from responsibility. The legacy of Punjab is far too rich to be sold off week by week.