Chandigarh: Punjab Chief Minister Bhagwant Mann has acknowledged that his government has increased the state's loan burden, revealing that loans amounting to Rs 47,107 crore have been acquired in just 18 months of their tenure. In a letter addressed to Governor Banwarilal Purohit, Mann requested that Prime Minister Narendra Modi be convinced to postpone loan repayments (a moratorium on debt repayment) for at least the next five years.
Furthermore, Chief Minister Mann urged the Governor to raise the issue of the Rural Development Fund (RDF) with the Prime Minister. Mann emphasized, "I would also urge upon you (Governor) to convince Hon’ble Prime Minister to not only release the pending RDF but also accord a moratorium on debt repayment of the State for at least 5 years." Notably, this statement was made in response to the Governor's inquiry, which sought details regarding the Rs 50,000 crore loan that the AAP-led government had raised during its tenure.
In his response, Mann stated that nearly 57% of the loan had been utilized solely for servicing the interest on loans inherited from previous state governments. Additionally, an additional Rs 47,107.6 crore was added to the debt, with Rs 27,016 crore allocated for debt servicing.
According to Mann's letter, the AAP government borrowed Rs 47,107 crore, but expenditures during their tenure amounted to Rs 48,530 crore. The details provided in the letter indicate that from April 2022 to August 2023, Punjab's debt increased by Rs 47,107.6 crore, encompassing market loans, NABARD loans, externally aided project loans, and long-term loans under the Special Assistance for Creation of Capital Assets.
Mann highlighted that the government has recorded an increase in receipts, which has facilitated value-accretive investments, as well as the initiation of payments for arrears and unpaid dues. Following the loan and expenditure details, Chief Minister Mann urged the Governor to persuade the Prime Minister to grant a moratorium on state debt repayment for at least five years.
In his letter, Mann argued that such a move would provide much-needed relief to the state's strained financial position, allowing the government to enhance revenue growth and accelerate development efforts.
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