Chandigarh: Punjab has emerged as the 12th most indebted state in the country, with its outstanding debt reaching ₹4.13 lakh crore as of March 2026, according to data from the Union Finance Ministry.
The figures show that Tamil Nadu has the highest outstanding debt among all states at ₹10.42 lakh crore, followed by Maharashtra with ₹9.37 lakh crore, Uttar Pradesh with ₹8.83 lakh crore, Karnataka with ₹8.14 lakh crore, and West Bengal with ₹7.90 lakh crore.
Punjab’s outstanding debt is higher than that of Bihar, which stands at ₹4.03 lakh crore, and Haryana, which has ₹4.02 lakh crore in debt. At the other end of the spectrum, Mizoram has the lowest outstanding debt at ₹14,516 crore.
Over the past two years, Punjab has borrowed around ₹67,000 crore, while neighbouring Haryana has raised ₹63,000 crore through fresh borrowings.
The report projects that Punjab’s debt could rise to ₹4.47 lakh crore by March 31, 2027. The state’s outstanding debt had crossed ₹2.82 lakh crore in 2022.
According to the Reserve Bank of India’s indicative borrowing calendar, Punjab plans to raise ₹13,900 crore during the July–September quarter of the current financial year. The state had initially planned to borrow ₹9,500 crore during the April–June quarter but raised about ₹7,800 crore instead.
For the current financial year, the Punjab government intends to raise ₹43,798.38 crore through market borrowings. During the second quarter, states and Union Territories are expected to borrow a combined ₹3.18 lakh crore, with Punjab accounting for about 4.35% of the total planned borrowing.
Among neighbouring states, Haryana plans to borrow ₹19,000 crore during the second quarter, Rajasthan ₹15,000 crore, Bihar ₹14,000 crore, Gujarat ₹12,500 crore, and Himachal Pradesh ₹2,100 crore.
Punjab Finance Minister Harpal Singh Cheema has maintained that the government is borrowing within the prescribed limits and that much of the borrowing is being used to service debt inherited from previous governments.
