Performance, prudence lead to long-term goals
Lucknow, Feb. 12 -- The Yogi Adityanath government's 10th budget speaks of its performance and financial prudence for now amid the challenge of taking Uttar Pradesh ahead on the path of development even as it paves the way for long-term goals without short-term freebies.
Finance minister Suresh Khanna acknowledged his government's focus on performance in his budget speech with the couplet "kabile tarif hai andaaz ek ek kaam ka, ga raha hai geet UP Yogi ji ke naam ka" (His style of work is praiseworthy, a song is being sung in the name of Yogiji). The Yogi government has been able to push the development agenda aiming at making UP a trillion-dollar economy in the next few years and Viksit UP by 2047.
A close scrutiny of the state government's own analysis, circulated with the annual budget, claims that UP's GSDP (nominal), estimated to reach Rs 31 lakh crore by March 31, 2026, will go up further to Rs 39.75 lakh crore by March 31, 2027. Khanna, who presented the seventh of Yogi government's 10 budgets, said the GSDP was Rs 30.25 lakh crore in 2024-2025 and has grown 13.4% vis-a-vis the previous year. Those aware of the development say the GSDP growth may be about 14% in 2025-26 and is projected to be about 15% in 2026-27. His budget speech does not indicate measures to bring down the deficit.
The state government's analysis also claims that the state's debt to GSDP ratio would come down from an estimated 29.4% to 27.6% by March 31, 2026 and 23.1% by March 31, 2027. The state's fiscal deficit is also expected to remain Rs 1,18,480.59 crore, which is within permissible limits at 2.98% of GSDP. The state proposes to bring down the expenditure on debt servicing from an estimated 17.6% of revenue receipts in 2025-26 to 16.6% in 2026-27.
With regard to the financial situation, the state government's analysis indicates that it hopes to get Rs 1,08,310.02 crore from its own taxes, showing an estimated increase of about 47.89% in 2026-27. It hopes to get Rs 3,92,317.06 crore as its share in central taxes, subsidy and loans from the Centre in 2026-27. It estimates total receipts of Rs 8,48,233.18 crore in 2026-27. Its total receipts in 2025-26 may, however, remain about Rs 6,86,393.73 crore only against estimates of receiving Rs 7,79,242.65.
The state government's total estimated receipts include revenue receipts of Rs 5,79,842.01 crore and capital receipts of Rs 1,06,551.72 crore....
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