LUCKNOW, Oct. 11 -- A recent study by faculty members at Lucknow University, in collaboration with 16th Finance Commission, has provided various suggestions for financial growth in the state. It was prepared by Nagendra Kumar Maurya and Karuna Shanker Kannaujia after in-depth study of finances of the state between 2012-13 and 2023-24. Their suggestions will help the commission make final recommendations. The study found that although UP made progress in increasing its tax revenue, the overall tax-to-GDP ratio remains low between 7-8%. "While the introduction of GST improved tax structure and collection efficiency, the dependence on central transfers continues. Besides, the non-tax revenues, such as fees and dividends, grew slower after the pandemic, showing the need for diversified income sources," said Maurya. The study emphasised that the capital expenditure rose to nearly 28% of total spending in 2023-24, which indicates growing attention to infrastructure, schools, and hospitals. However, revenue expenditure, particularly on salaries and subsidies continues to have the major share of the budget. "We suggest improving cost recovery in public services and ensuring that loans and advances are directed toward productive assets. For the power sector, inefficiencies and cross-subsidisation continue to affect fiscal stability for which transparent tariff structures, reduction in technical losses and performance-based management in the Uttar Pradesh Power Corporation Ltd (UPPCL) is recommended," said Maurya. They also shared that there is a need for stronger monitoring mechanisms, improved data transparency and regular updating of public financial records while fiscal discipline, data transparency, and efficient public spending are key to strengthening a state's financial health. "Enhanced infrastructure investment, industrial growth and local governance reforms will be crucial for sustainable and inclusive development, which can help the state in contributing to the country's trillion-dollar economy vision," said Kannaujia....