Punjab CM Bhagwant Mann seeks 5-year moratorium on state’s loans, asks Governor to ‘persuade’ PM Modi

On Tuesday (3 October), Punjab CM Bhagwant Mann admitted that his authorities has elevated the mortgage burden of the state. He knowledgeable that his authorities has raised loans price Rs 47,107 crore in simply 18 months of its tenure. He additionally urged Governor Banwarilal Purohit to persuade PM Modi to not gather reimbursement of mortgage (moratorium on debt reimbursement) for no less than the following 5 years. 

Additionally, Punjab CM Mann additionally requested the Governor to take up the problem of Rural Development Fund (RDF) with the Prime Minister. 

Bhagwant Mann stated, “I would also urge upon you (Governor) to convince Hon’ble Prime Minister to not only release the pending RDF but also accord a moratorium on debt repayment of the State for at least 5 years.”

Punjab CM Bhagwant Maan writes to Punjab Governor Banwarilal Purohit, giving particulars of the rise in debt by his Government.

Bhagwant Maan writes, “I’d additionally urge upon you to persuade Hon’ble Prime Minister to not solely launch the pending RDF but in addition accord a moratorium… pic.twitter.com/5WeQ3WmHlr

— ANI (@ANI) October 3, 2023

Notably, he made this announcement whereas replying to the Governor’s letter through which he had sought particulars of the Rs 50,000 crore mortgage that the Mann-led AAP authorities had raised throughout its tenure. 

In his reply letter, Mann claimed that just about 57% of the mortgage had been spent solely to repay the curiosity on loans inherited by the earlier state governments. He famous that a further Rs 47,107.6 crore was added to the debt, out of which, Rs 27,016 crore had been spent on debt servicing.

CM Mann’s letter to Governor (Image Source – ANI)

(Image Source – ANI)

According to Mann’s Demi Official (DO) letter, the AAP authorities borrowed Rs 47,107 crore whereas it ended up spending Rs 48,530 crore throughout its tenure within the state. 

As per the main points furnished in his letter, from April 2022 to August 2023, the web addition to the Punjab’s debt had been Rs 47,107.6 crore. This contains market loans, loans from NABARD, externally aided undertaking loans and long-term mortgage beneath Special Assistance for Creation of Capital Assets.

The Punjab CM added that the federal government has recorded a rise in receipts. He added that the extra receipts have helped immensely in making value-accretive investments and initiating cost of arrears and unpaid dues. 

After giving particulars concerning mortgage and expenditure, CM Mann urged the Governor to “convince Hon’ble Prime Minister to not only release the pending RDF but also accord a moratorium on debt repayment of the state for at least 5 years”.

In his letter, he argued, “This will provide much-needed relief to the strained financial position of the state and would give some fiscal elbow room to your government to accelerate the growth of revenue and the pace of the development.”