CM Mann States Actual Loan Amount as Rs 47,000 Crore, Addresses Governor's Concerns & Highlights Debt Allocation

CHANDIGARH: In response to the ongoing discussions about the state's debt situation, Punjab Chief Minister Bhagwant Mann has promptly responded to Governor Banwarilal Purohit's inquiry by providing a detailed breakdown of the loan amount. The Chief Minister clarified that the state had taken a loan of Rs 47,000 crore, not Rs 50,000 crore as previously indicated.

In the correspondence, CM Mann presented an intricate account of the allocation of the loan, shedding light on various sectors and payments. He highlighted that out of the total loan amount, approximately Rs 27,000 crore had been utilized to pay the interest on loans from previous administrations. Additionally, the letter outlined allocations towards electricity subsidies, government schemes, and dues related to GST.

Chief Minister Mann emphasized that the previous governments had accumulated a loan of Rs 3 lakh crore, underscoring the need for careful management and scrutiny of the state's financial obligations. Addressing the recent communication with the Governor, CM Mann pointed out that the state government had earlier sought the intervention of the Center to release Rs 5,637 crore as Rural Development Fund (RDF) on September 21. In response, the Governor had requested a comprehensive account of the state's debt.

The Provided data revealed that from April 1, 2022, to August 31, 2023, the Punjab government had obtained loans amounting to Rs 47,107 crore, encompassing market loans and loans from NABARD. Additionally, it included loans tied to centrally approved projects.

Expressing the government's strategic investment of the loan amount, CM Bhagwant Mann highlighted that a significant portion was directed towards managing interest inherited from previous debts. He emphasized the government's commitment to funding various schemes and institutions that had been overlooked by prior administrations.

In conclusion, Chief Minister Mann urged the Governor to engage with the Prime Minister to expedite the release of the pending RDF, underscoring the state's dedication to judiciously managing loans, striving to enhance the state's financial status, and simultaneously creating employment opportunities for the youth of Punjab.