Chandigarh, September 7 (Daily Kiran) : The Punjab government is set to increase its debt burden by borrowing ₹1,200 crore. This decision comes as the Aam Aadmi Party (AAP) administration has issued a notification in the state gazette.
To raise the funds, the government plans to reissue the 7.65% Punjab SGS 2043 bond. According to a notification from the state’s finance department, issued on September 3, the bond will be reissued for the total amount of ₹1,200 crore.
This loan is intended to finance capital expenditures for various ongoing development projects. The government has also obtained approval from the central government, as mandated by Article 293(3) of the Constitution of India.
The sale of government stock will take place through an auction conducted by the Reserve Bank of India (RBI) at its Mumbai office. This auction is scheduled for September 8, with competitive bids to be submitted electronically via the RBI’s core banking solution, e-Kuber, between 10:30 and 11:30 AM. Up to 10% of the notified sale amount will be allocated to eligible individuals and institutions.
In response to this decision, the opposition has strongly criticized the government. Pratap Singh Bajwa, the leader of the opposition in the Punjab Assembly, took to social media platform X to express his concerns. He stated, “Another ₹1,200 crore loan. The AAP government is plunging Punjab deeper into debt. Bhagwant Mann, Punjab is not your ATM. How long will you continue to borrow to cover your government’s economic failures?”
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