Section 54(4) in The Punjab Reorganisation Act, 1966
(4)The remaining public debt of the existing State of Punjab attributable to loans taken from the Central Government, the Reserve Bank of India or any other body or bank before the appointed day shall be divided between the successor States in proportion to the total expenditure on all capital works and other capital outlays incurred or deemed to have been incurred up to the appointed day in the territories of the existing State of Punjab included respectively in each of those successor States :Provided that in computing such expenditure, the expenditure on the Beas Project and the Bhakra-Nangal Project as defined in sub-section (4) of section 78 shall be excluded and the expenditure on other assets for which capital accounts have been kept shall be taken into account.Explanation.- Where any expenditure on capital works or other capital outlays cannot be allocated between the territories included in the successor States, such expenditure shall, for the purposes of this sub-section, be deemed to have been incurred in those territories according to the population ratio.
