3 weeks ago
Punjab's Debt Balloons From ₹15,250 Crore to ₹4.47 Lakh Crore
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.
Congress MP Manish Tewari said Punjab's debt has risen from ₹15,250 crore in 1996 to a projected ₹4.47 lakh crore by the end of 2026-27.
Tewari attributed the debt to populist and profligate spending by successive governments over the past 30 years, not militancy.
Punjab's debt-to-GSDP ratio stood at 46.6% as of March 31, 2025, the second highest in India after Arunachal Pradesh at 57%.
The state's annual debt servicing cost is around ₹42,481 crore, more than 23% of state revenues, leaving only about 5.6% for capital expenditure.
Tewari warned that Punjab is borrowing to pay interest on existing debt and urged the state to stop doling out freebies it cannot afford.
- Who
- Congress MP Manish Tewari, commenting on successive Punjab governments.
- What
- A warning that Punjab's debt has ballooned from ₹15,250 crore in 1996 to a projected ₹4.47 lakh crore by 2026-27.
- Where
- Punjab, India.
- When
- Tewari's statements were posted on August 6, 2026, citing data as of March 31, 2025.
- Why
- Tewari blames populist and profligate spending by successive governments, with the state now borrowing to service existing debt.
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.”
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