Punjab government plans ₹1,000 crore additional market borrowing in June

The Punjab government is preparing to borrow an additional ₹1,000 crore from the market in June during the 2026–27 financial year, according to information from the state’s finance department plan.

With this proposed borrowing, the total market borrowing in the first three months of the financial year would rise to ₹6,300 crore. The government had earlier raised ₹2,800 crore in April and ₹2,500 crore in May.

According to the borrowing plan, the ₹1,000 crore loan will have a tenure of seven years and is intended for capital expenditure, development projects, and the implementation of various government schemes. The borrowing is being carried out under the state’s overall fiscal framework managed by the finance department.

The state has projected total market borrowing of ₹43,798.38 crore for the current financial year. Finance Minister Harpal Singh Cheema has stated that the state’s financial position is improving and that all borrowings are being taken within prescribed limits. He also said a significant portion of funds is being used for repayment of principal and interest on existing debt.