Punjab CM to Gov: 57% of loans utilized to pay off debts inherited by Gov
Chief Minister Bhagwant Mann revealed on Tuesday that the state government borrowed Rs 47,109 crore during the last 18 months, only days after Punjab Governor Banwarilal Purohit requested him to explain the Rs 50,000 crore debt incurred by the state government under the Aam Aadmi Party (AAP) reign.
In a letter to the governor, Mann claimed that more than 57% of the Rs 47,107 crore in loans obtained by the AAP administration between April 2022 and August 2023 had been utilized to pay the interest on debts that the present administration had inherited from earlier state governments.
The CM claimed that the net increase in the state’s debt during the period of the state government was Rs 47,107.6 Crore. This comprises loans from the market, loans from NABARD, loans for projects with outside funding, and long-term loans made under special support for the development of capital assets as approved by the Center.
According to Mann, the state government has funded organizations throughout his time as CM by borrowing money and using its own income streams, as well as by implementing policies that were disregarded by the previous administration and using the additional debt to finance the construction of capital assets.
The CM referred to the government as “your government” and said that he is dedicated to upholding the state’s legitimate obligations and prompt debt payment.
“I am pleased to report that since April 1, 2022, your administration has contributed a total of Rs 4,000 crore to the Sinking Fund, whereas the sum accumulated by previous governments only reached Rs 2,988 crore. This fund is intended to lessen some of the state’s future debt strain, he added.
The Punjab Governor had requested information on the state’s rising debt of more than Rs 50000 crore during the tenure of the AAP government on September 22, after Chief Minister Bhagwant Mann asked him to take up the state’s request for Rural Development Fund (RDF) from the federal government.
The Governor had requested that the CM submit comprehensive information about the “utilisation of this substantial amount of debt” in order to “enable a more informed approach in addressing the RDF matter.”
