On Friday (22 September), Governor Banwarilal Purohit sought details from Punjab Chief Minister Bhagwant Mann regarding the utilisation of funds citing the alarming surge in the state’s debt under the AAP regime. While replying to CM Mann’s letter written a day earlier, the Governor stated that he has learned that Punjab’s debt has gone up by about Rs 50,000 crore under the Aam Aadmi Party dispensation.
After highlighting the rise in debt, he sought from Chief Minister Bhagwant Mann details of the utilisation of “this huge amount”.
Notably, he was responding to Mann’s letter in which the Punjab CM had requested the Governor to take up the issue of the rural development fund (RDF) amounting to Rs 5,637 crore pending with the President and the Prime Minister.
Responding to his demand, the Governor asserted that it would be appropriate “to wait for the decision of the Supreme Court” as the state government had already moved a plea on the matter before the apex court, earlier in July.
In response to Mann’s letter, the governor wrote, “I have received your letter regarding the Rural Development Fund (RDF) amounting to Rs 5,637 crore and requesting for my intervention to take up the case with the Prime Minister. At the outset, I would like to convey that I am duty-bound to serve the people of Punjab.”
He added, “I have learned from the media reports that you have already approached the Hon’ble Supreme Court of India before approaching me. It would be appropriate to wait for the decision of the highest court before anything is done on this issue.”
Seeking details about the utilisation of funds, the Governor emphasised that through a detailed response regarding the fund utilisation from the state government, he could highlight that the funds were utilised properly and convince the Prime Minister regarding his request.
In the letter, he added, “Further, I have learned that the debt of Punjab rose by about Rs 50,000 crore during your regime. Details of utilisation of this huge amount may be furnished so that I will be able to convince the prime minister that money has been properly utilised.”
Opposition writes a letter to the Governor demanding a comprehensive audit regarding utilisation of funds
Following the exchange of letters between CM Bhagwant Mann and the Governor, opposition parties in Punjab have raised a demand to conduct an audit of the borrowings under Mann’s leadership. Shiromani Akali Dal (SAD) launched an attack on the Aam Aadmi Party and asked if the money was spent only on “self-promotion” and paying the “air travel and hotel bills” of Delhi Chief Minister Arvind Kejriwal.
Subsequently, the Leader of the Opposition in the Punjab Assembly, Partap Singh Bajwa wrote a letter to the Governor on Saturday (23rd September). In the letter, he pointed out that the additional debt of Rs 50,000 crore has resulted in an increase in the debt-to-GDP ratio to 47.6 percent.
Bajwa highlighted the election promises of the AAP government and how the Arvind Kejriwal-led party had assured voters that they would alleviate Punjab from its debt burden but the reality is completely different.
He stated, “However, it has come to our attention that the reality seems to diverge significantly from these assurances. In just 18 months, the AAP-led government has borrowed a staggering Rs 50,000 crore.”
Bajwa added that the most concerning aspect is the apparent lack of transparency and accountability in the “utilisation of this substantial loan”.
Asserting that it is a challenge to obtain information from the current government, he demanded, “These circumstances underscore the urgent need for an immediate and comprehensive audit, under the purview of the Accountant General of Punjab. This audit is not just a request, it is a demand for transparency and accountability.”