While the Congress leader warns of mounting debt and economic mismanagement, Punjab’s finance minister cites record GST growth to defend the AAP government’s fiscal strategy..jpg)
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Chandigarh, July 2 — Leader of Opposition in the Punjab Assembly, Partap Singh Bajwa, has launched a scathing attack on the Aam Aadmi Party (AAP)-led state government, accusing it of dragging Punjab toward financial disaster. Citing heavy borrowing and escalating debt, the Congress veteran said the Bhagwant Mann administration is endangering the state’s future through what he called “reckless fiscal mismanagement.”
According to Bajwa, the state is set to borrow an additional Rs 8,500 crore in the second quarter of the current financial year. The borrowing plan includes Rs 2,000 crore in July, Rs 3,000 crore in August, and Rs 3,500 crore in September. He claimed this borrowing spree is pushing Punjab to the edge of bankruptcy and demonstrates a lack of concern for the state’s long-term financial stability.
Bajwa further questioned the merit of the recent appointments made by the Mann government to revive the state’s economy. These include Arbind Modi, a former senior economist at the International Monetary Fund (IMF), appointed as Chief Advisor, and Sebastian James, a former World Bank economist, designated as Advisor (Fiscal Affairs). “Is this the expertise that globally renowned economists are offering the AAP government?” he asked, adding that even Delhi Chief Minister and AAP leader Arvind Kejriwal, who often promotes his revenue management record, has failed to support Punjab in its fiscal hour of need.
The Congress leader highlighted the alarming rise in Punjab’s debt since AAP came to power in 2022. He stated that the state’s outstanding debt stood at Rs 2,81,773 crore at the start of AAP’s term and is projected to rise to Rs 4,00,000 crore by the end of 2025-26. By 2026-27, the final year of the current government’s term, the debt could escalate further to Rs 4,50,000 crore, according to economist estimates. “The people of Punjab will bear the burden of this massive debt through heavy taxation,” Bajwa warned, adding that the AAP government might exit before the next Assembly elections, leaving the fiscal burden behind.
In response to Bajwa’s allegations, Punjab’s Finance Minister Harpal Singh Cheema strongly defended the government’s fiscal performance. He said Punjab recorded a 44.44 per cent growth in net Goods and Services Tax (GST) collections for June 2025 and a 27.01 per cent increase in the first quarter of the current fiscal year. Cheema noted that this marks the highest-ever GST growth for a quarter and for the month of June in Punjab’s history.
He asserted that Punjab has outperformed the national average in GST revenue growth, positioning itself among the top-performing Indian states in terms of tax mobilisation. The finance minister also attributed this achievement to the government’s strong economic measures, despite ongoing national and geopolitical challenges, including border tensions.
As the political confrontation intensifies, the state’s economic trajectory remains a central concern. While the Congress raises alarms over increasing debt and borrowing, the AAP government insists its reforms are working, pointing to revenue growth as a sign of fiscal resilience. The debate is likely to deepen in the coming months, with the economy becoming a key battleground ahead of the next elections.