99% Punjab debt used for Legacy reasons i.e. AAP Govt's Expenses well managed

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Last Updated: 15 July 2025

99% Debt Used for Legacy reasons i.e. AAP Govt has been managing its Expenses on its own

Additional Debt ₹80,000 Crore 100%
Interest Payment ₹66,410 Cr 83.01%
Pending Congress Bills ₹8,359 Cr 10.44%
Investment in Sinking Fund ₹4,000 Cr 5%
Total ₹78,769 Cr 98.44%

Total Debt

Date Debt Comments
31 March 2022 ₹2.82 lakh crore[1] Legacy debt
31 March 2025 ₹3.62 lakh crore[2] 3 years of AAP
Additional during AAP rule ₹80,000 Crore -

.

Date Debt to GDP ratio Party
2024-25 RE 44.77%[2:1] AAP
2023-24 43.72%[2:2] AAP
2022-23 43.6%[3] AAP
2021-22 44.7%[3:1] Congress

Repayment by AAP

Year Pricipal Interest Total
2022-23 ₹16,094 Cr[4] ₹19,905.13 Cr[5] ₹35,999.13.13 Cr
2023-24 ₹17,281 Cr[2:3] ₹22,551.93 Cr[2:4] ₹39,832.93 Cr
2024-25 ₹12,866 Cr[2:5] ₹23,953.72 Cr[2:6] ₹36,819.72 Cr
2025-26 Planed ₹18,200 Cr[6] ₹25,000 Cr[6:1] ₹43,200 Cr
Total Interest Re-paid - ₹66,410.88 Cr -

Pending Payments from Congress Rule[5:1]

Previous Congress government left atleast Rs 24,351 crore liability/pending payments[7]
-- Rs 13,759 crore unpaid 6th Punjab Pay Commission arrears
-- Rs 7,117 crore of the power subsidy arrears
-- Rs 2,274 crore on account of the Atta-Dal Scheme
-- Rs 1,200 crore of the crop loan waiver

Pending Bills Amount Comments
Bailout to PUNSUP ₹350 Cr Paid during 2022-23
Bailout to PSCADB ₹798 Cr Paid during 2022-23
Bailout to RDF ₹845 Cr* Paid during 2022-23 & 2023-24
Power Subsidy Arrears ₹3608 Cr Pending ₹9020 Cr being paid in 5 installments
Sugarcane Farmers Arrears ₹1008 Cr Paid during 2022-23 & 2023-24
Unpaid Central Schemes ₹1750 Cr Paid during 2022-23
Total ₹8,359 Cr -

* Till Sept 2023

Consolidated Sinking Fund(CSF)

BENEFIT: Lower interest rates on the bonds as High CSF leads to High creditworthiness of Punjab[8]

Total reached 10,000 crore, a significant increase from Rs 3,000 crore where previous govt left it[6:2]

Year Investment
2022-23 ₹3000 crore[5:2]
2023-24 ₹1000 crore*[9]
2024-25 -
2025-26 -
Total ₹7000 crore[6:3]

*Till Sept 2023

REFERENCES:

  1. https://www.hindustantimes.com/cities/chandigarh-news/punjab-debt-cm-tells-governor-57-of-47-107-cr-loan-spent-on-paying-interest-101696324160628.html ↩︎

  2. https://finance.punjab.gov.in/uploads/26Mar2025/d80520e8-c0cc-470e-9bc0-0abb56785281_20250326133125.pdf ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎ ↩︎

  3. https://prsindia.org/files/budget/budget_state/punjab/2025/Punjab_Budget_Analysis_2025-26.pdf ↩︎ ↩︎

  4. https://finance.punjab.gov.in/uploads/05Mar2024/Budget_At_A_Glance.pdf ↩︎

  5. https://www.babushahi.com/full-news.php?id=172087 (Punjab Govt Press Release) ↩︎ ↩︎ ↩︎

  6. https://www.babushahi.com/view-news.php?id=206808&headline=Punjab-posts-record-44.44-%-GST-growth-in-June;-highest-ever-Q1-revenue-surge-at-27.01-% (Punjab Govt Press Release) ↩︎ ↩︎ ↩︎ ↩︎

  7. https://timesofindia.indiatimes.com/city/chandigarh/punjab-in-debt-trap-of-rs-2-63-lakh-crore-congress-handed-over-immediate-liability-of-rs-24351-crore/articleshow/92456033.cms ↩︎

  8. https://www.legalserviceindia.com/legal/article-2730-explained-consolidated-sinking-fund.html ↩︎

  9. https://www.tribuneindia.com/news/punjab/punjabs-revenue-receipts-fall-10-in-2023-24-620557 ↩︎

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