Chandigarh, April 9 -- Amid growing criticism from the opposition over rising debt and the alleged deterioration in the state's fiscal health, the Punjab government plans to raise a total loan of Rs.9,500 crore through market borrowing during the first quarter of the 2026-27 financial year. The state will mobilise these funds - Rs.4,000 crore in April, Rs.3,000 crore in May, and Rs.2,500 crore in June - as part of its efforts to manage its financial requirements, according to the indicative calendar released by the Reserve Bank of India. The market borrowing plan was shared by the Punjab government with the central bank, which, acting as the states' debt manager, will hold auctions of state securities to raise these loans. As per the market borrowing schedule, the state government raised the first tranche of Rs.1,500 crore on Tuesday for a 10-year tenor, immediately sparking concerns among the opposition leaders, who criticise the government for the "deteriorating fiscal health". They accused the state government of pushing Punjab towards a "financial emergency" by adding to the Rs.4.07-lakh crore debt liability through continuous borrowing. Finance minister Harpal Singh Cheema said that borrowing will be carried out in accordance with the fiscal deficit limits prescribed under the Fiscal Responsibility and Budget Management Act (FRBM), 2003. "We have outlined the borrowings for capital expenditure, debt repayment and other financial needs in our budget for this year," he said. The fiscal deficit refers to the excess of government expenditure over its receipts, and this gap is bridged through borrowings. During the 2026-27 fiscal, net borrowing is estimated at Rs.39,970.65 crore as per the government's budget estimates, taking the outstanding debt to Rs.4.47 lakh crore by the end of the year. An economist who closely tracks the state finances said that these unproductive borrowings are a matter of concern, as debt repayment and interest liabilities are now higher than the fiscal deficit. "The government has not been able to generate sufficient revenue to meet its current requirements with all these freebies and other doles. It is bridging this gap through loans," he added. The Punjab government has constituted a three-member cabinet sub-committee under finance minister Harpal Singh Cheema to address issues related to dearness allowance (DA) and dearness relief (DR) for its employees and pensioners. The committee also includes cabinet ministers Aman Arora and Baljit Kaur as members, according to a notification issued by the general administration department on Tuesday on its reconstitution. The committee will examine the issue of DA and DR to different categories of employees in view of the pay revisions carried for various categories in 2011 and the relatively higher emoluments being drawn even after implementation of the 6th Pay Commission vis-a-vis employees in the central government, existence of different pay structures, the pay scales being granted on the pattern of the 7th Central Pay Commission to employees recruited on or after July 17, 2020, and the financial implication for the state exchequer. The earlier three-member committee led by Cheema had examined the pay commission arrears. Shiromani Akali Dal (SAD) leader Bikram Singh Majithia accused the state government of setting up another committee instead of clearing long-pending arrears. "The issue has been pushed to the back burner, not resolved," he wrote on X, posting a copy of the notification. He also demanded payment of Rs.14,000-crore DA dues and restoration of the old pension scheme....