The financial future of Punjab is being mortgaged year after year due to unprecedented and uncontrolled borrowing by the current government, alleged Shiromani Akali Dal (SAD) leader Ajaypal Middukhera.

He sharply criticized Chief Minister Bhagwant Singh Mann’s Aam Aadmi Party (AAP) government for initiating an additional debt of ₹1,000 crore.

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“In a deeply concerning development, the Punjab government, led by Chief Minister Mann, has taken on an additional ₹1,000 crore in debts through a recent government securities auction. The notification for this was issued on May 22, 2025. This only adds to an already unsustainable debt burden,” Middukhera said in a statement.

He further stated, “What is more alarming is that this new loan is structured to be repaid over a period of 21 years — until 2046 — effectively tying the hands of future generations of Punjabis.”

Raising serious concerns over the state’s fiscal management, he added: “At a time when the people of Punjab are grappling with unemployment, crumbling infrastructure, and a distressed agriculture sector, the government continues to borrow recklessly.”

Citing data and recent financial disclosures, Middukhera emphasized that Punjab’s debt has ballooned to historic levels, with little to show in terms of development or reforms. “Punjab is caught in a major debt trap. By March 2026, the state’s total debt is expected to reach ₹4,25,000 crore. In just April and May this year, the government has raised ₹11,200 crore in state development loans from the RBI. This massive borrowing clearly indicates the government’s inability to manage Punjab’s economy,” he said.

“Even to repay old loans, new loans are being taken. No meaningful development is taking place due to the high cost of interest payments,” he added. “Substantial funds are being spent on unnecessary Chairman and OSD appointments for individuals brought in from Delhi,” he alleged.

Middukhera accused the government of betraying public trust. “The promise was of ‘badlav’ (change), but what we are witnessing is financial decay. Every new loan takes us a step closer to economic slavery. Who will repay this debt? Our youth, already seeking jobs abroad? Our farmers, already burdened by loans? Or our children, who will grow up in a state held hostage by fiscal mismanagement?”

The SAD leader also demanded that the government disclose full details of all loans taken since 2022 and explain how these funds have been used. “Transparency and accountability are not optional — they are fundamental to a democracy. The people of Punjab deserve to know where their money is going and how their future is being shaped,” he claimed.

This growing fiscal stress, he noted, is exacerbated by a large share of the state’s revenue being consumed by committed expenditures such as salaries, pensions, and interest payments, leaving very limited space for developmental initiatives.