Overview
- Citing a parliamentary reply that Manish Tewari publicised on Thursday, opposition figures say Punjab's debt‑to‑GSDP ratio was 46.6% as of March 31, 2025 and that annual debt servicing runs roughly ₹42,481–43,194 crore.
- Tewari and other Congress leaders say the state's total outstanding debt could hit about ₹4.47 lakh crore by end‑FY2026‑27 and have urged the AAP government to publish a white paper detailing borrowings and repayments.
- Opposition claims, echoed by some analysts, assert the government is using new borrowings to meet interest and principal on old debt, a pattern they call a 'debt trap' that crowds out development spending.
- The reported debt burden translates to more than 23% of revenue going to debt servicing and only about 5–6% left for capital expenditure, which critics say helps explain recent strikes and complaints about disrupted public services.
- Longer‑term figures trace the rise to decades of policy choices and COVID‑era deficits, and the issue has become a central line of attack in the run‑up to Punjab's elections early next year with both Congress and BJP pressing for accountability.