Punjab's debt crosses ₹4 lakh crore mark
Punjab's public debt just crossed ₹4 lakh crore, after borrowing nearly ₹21,000 crore in less than a year.
By March 2026, the state's debt is about ₹4.08 lakh crore (₹4,07,784 crore), more than ₹4 lakh crore.
Even though the debt-to-GSDP ratio fell from 48.25% to 44.47%, it remains among the most indebted states in India.
Most of Punjab's new loans aren't going toward new projects
Most of Punjab's new loans aren't going toward new projects: they're being used to pay off old debts and interest.
In fact, about 85% of what the state borrows goes straight into clearing past dues or paying interest.
Interest payments consumed about 24% of the state's revenue receipts in 2025-26 (revised estimates).
The source notes that interest plus debt repayment pressure reduces fiscal space.
Plus, delays have already cost Punjab ₹800 crore in canceled central road projects.