Chandigarh: The Punjab government has once again turned to market borrowing, raising a fresh loan of Rs 1,000 crore through State Development Loans (SDLs).
According to official sources, the loan was secured via an SDL issuance on September 18, with an interest rate fixed at 6.98%. This is the sixth consecutive month the state has resorted to borrowing, raising concerns over the fiscal management strategy being pursued by the administration.
Loan to Be Repaid Over 8 Years
The new borrowing is structured as a long-term debt and is scheduled to be repaid by September 29, 2033, spreading the repayment over a period of eight years.
