3 weeks ago

Punjab's Debt Balloons From ₹15,250 Crore to ₹4.47 Lakh Crore

Punjab's Debt Balloons From ₹15,250 Crore to ₹4.47 Lakh Crore
Punjab's debt was ₹15,250 crore in 1996. Now it's ₹4.47 lakh crore: Manish Tewari sounds alarm · businesstoday.in

A man named Manish Tewari works for the Indian government and is worried about a state called Punjab.

Punjab borrowed money, like when you borrow a toy and have to give it back.

In 1996, Punjab owed ₹15,250 crore.

Today, it owes much more — about ₹4.47 lakh crore.

Tewari says many leaders over 30 years wasted the money instead of using it wisely.

So much money goes to pay back the old debt that very little is left for new schools and roads.

Only about 5.6% of the state's money can be spent on building new things.

Compared to how much money the state earns, Punjab has one of the biggest debts in the whole country.

Tewari thinks leaders should stop giving away free things the state cannot pay for.

Key facts

Debt in 1996
₹15,250 crore
Debt in 2002
₹32,496 crore
Projected debt (2026-27)
₹4.47 lakh crore
Debt-to-GSDP ratio (March 31, 2025)
46.6% — second highest in India
Highest debt-to-GSDP ratio
Arunachal Pradesh at 57%
Annual debt servicing cost
≈₹42,481 crore (over 23% of state revenues)
Interest payments
₹28,755 crore (about 23% of revenue receipts)
Capital expenditure share
Only 5.6% after revenue expenditure and debt obligations

Quotes

Manish Tewari

Congress Member of Parliament for Punjab

“The debt, therefore, is not militancy‑related but a consequence of populist and profligate spending over the past 30 years by successive governments.”
businesstoday.in
“In effect, the state is borrowing to pay interest on existing debt rather than spend on development.”
businesstoday.in

Sources

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