Chandigarh, March 9 -- Among the most indebted states in the country, Punjab's outstanding debt is projected to approach the Rs.4.50 lakh-crore mark during the 2026-27 financial year.

The state government is estimated to borrow around Rs.39,971 crore during the year, taking the debt liability to Rs.4,47,754 crore by March 31, 2027, according to the 'budget at a glance' document tabled by finance minister Harpal Singh Cheema in the vidhan sabha on Sunday. This marks a 9% increase in debt over the current year's revised estimates of Rs.4,07,784 crore. The debt-to-gross state domestic product (GSDP) ratio will be 45.65%, which is among the highest in the country.

The spiralling debt, widely perceived to be the cause of the state's fiscal w...