BJP national general secretary Tarun Chugh said today that the AAP government led by Chief Minister Bhagwant Mann has pushed Punjab to the brink of economic collapse by grossly misusing the resources and putting the state under unprecedented heavy indebtedness.

While demanding a white paper on the state's economic situation, Chugh pointed out that  if the decline continued for some more time Punjab may have to declare financial emergency the way it happened in Sri Lanka, said Chugh blaming the Bhagwant Mann government for landing the Punjab economy in complete mess.

He said while the share of Punjab in central taxes has been steadily increasing  from Rs 14,000 crores in 2022-23 to Rs 22000 crores in the current financial year the debt-GDP ratio has touched alarming heights. As against the RBI's recommendation of keeping it up to 32 per cent, Punjab has taken it to 45 per cent by recklessly raising debt on the state.

Even as the state borrowed Rs 94000 crores in the last financial year the total debt on Punjab has touched a staggering Rs 3.7 lakh crores.

Moreover, the capital expenditure has been slashed from Rs 10354 crores in 2022-23 to Rs 7445 crores in 2024-25.

Expressing serious concern at the  state economic situation, Chugh said all this has coincided with drastic reduction in budgetary allocation to key sectors like rural development, agriculture, small scale industries and infrastructure development.
No special  welfare schemes have been initiated by the AAP government for SC/ST classes and OBCs which indicates how glaringly the Bhagwant Mann government has been missing on inclusive growth of the state.

He said alarmingly the allocation to village and small scale industries has been reduced from Rs 385 in 2023-24 to Rs 126 crores in 2024-25. Similarly, allocation to roads and bridges has been drastically cut from Rs 295 crores in 2023-24 to Rs 192 crores in 2024-25. Even allocation to the agriculture and allied sectors has been slashed by about Rs 100 crores which is a serious reflection of the lopsided and wayward policies of the AAP government in Punjab.

Warning the Bhagwant Mann government against pushing Punjab into a state of economic emergency, Chugh demanded that the need for introducing fiscal discipline  to save Punjab from national ignominy.