Punjab raises Rs 2,500 crore through market borrowings, opposition attacks AAP govt

Chandigarh: The Punjab govt has raised Rs 2,500 crore through sale of state govt securities (SGS) to finance capital expenditure and development schemes, triggering sharp criticism from opposition parties over the state's rising debt burden.According to the Reserve Bank of India's (RBI) auction results issued on Tuesday, Punjab raised the amount in three tranches — Rs 700 crore through reissue of 7.84% Punjab SGS 2038, Rs 800 crore through 15-year Punjab SGS 2041 and Rs 1,000 crore through 18-year Punjab SGS 2044. The RBI auction results showed Punjab SGS 2038 carried a weighted average yield of 7.92%, Punjab SGS 2041 7.91% and Punjab SGS 2044 7.92%. The govt said the borrowings would finance plan and development schemes under execution and added that the Centre's consent had been obtained under Article 293(3) of the Constitution.The move drew sharp reactions from the opposition.Punjab Congress chief Amarinder Singh Raja Warring questioned the govt's fiscal management and alleged employees were still awaiting dearness allowance and other dues despite repeated borrowings."Another Rs 2,500 crore loan added to Punjab's burden… If the govt is continuously taking loans, where is the money going?" Warring said in a post on X.SAD leader Bikram Singh Majithia also attacked the AAP govt, alleging Punjab was being burdened with debt to fund "extravagant spending".On April 21, the Punjab govt had also notified sale of 12-year securities worth Rs 1,300 crore for financing development expenditure.