1. UP budget: Yogi Adityanath government sets aside Rs 36,000 cr for farm loan waiver

UP budget: Yogi Adityanath government sets aside Rs 36,000 cr for farm loan waiver

The Yogi Adityanath government in Uttar Pradesh on Tuesday presented a Rs 3,84,660-crore budget for 2017-18 — up 10.9% from the previous year — in the state assembly with a special provision of Rs 36,000 crore to enable waiver of crop loans of small and marginal farmers.

By: | Lucknow | Published: July 12, 2017 6:14 AM
yogi adityanath, uttar pradesh government, uttar pradesh farmers, farmers, farmers uttar pradesh, farm loan waiver State’s finance minister Rajesh Agarwal said the government’s target is to achieve an annual GSDP growth rate of 10% over the next five years. (Reuters)

The Yogi Adityanath government in Uttar Pradesh on Tuesday presented a Rs 3,84,660-crore budget for 2017-18 — up 10.9% from the previous year — in the state assembly with a special provision of Rs 36,000 crore to enable waiver of crop loans of small and marginal farmers. Madhya Pradesh, Punjab, Tamil Nadu and Karnataka had earlier announced farm loan waivers; fiscal impact of the largesse, analysts said, would be felt over many years. “We expect the waivers to be spread over several years, and less than 0.2% of GDP in FY18,” Credit Suisse said in a recent report. State’s finance minister Rajesh Agarwal said the government’s target is to achieve an annual GSDP growth rate of 10% over the next five years. Towards this end, he said, the government was focusing on rural development along with the overall development of the state.

Reiterating that the state government’s commitment was towards farmers and marginalised sections of society, the minister also cited other key initiatives that are high on the priority list for the government, such as the single-window clearance system for projects, power-for-all and Make-in-UP.

The budget provided Rs 55,782 for new schemes, Rs 3,255 crore for construction of toilets, Rs 2,800 cr for drinking water in Bundelkhand and Purvanchal and Rs 1,000 cr for the Swachha Bharat Mission in UP cities.

A budgetary provision of Rs 288 crore has also been made for various Metro rail projects in the state and a seperate provision of Rs 599 crore has been made for widening and strengthening of roads, while works worth Rs 3,000 crore have been proposed for Housing for All (Urban Mission) under the Pradhan Mantri Awas Yojna.

A provision of Rs 400 crore has also been made for construction and strengthening of air strips at selected places and land acquisition for the Jewar Airport in Gautam Budha Nagar.

The budget makes a provision of Rs 450 crore for the Pradhan Mantri Fasal Bima Yojna, besides a provision of Rs 261.66 crore for soil survey and testing and a provision of Rs 968.57 crore under the National Agriculture Development Scheme.

For rural development, the government has set aside Rs 4,500 crore under the Pradhan Mantri Awas Yojna (Rural) for providing housing facility to the homeless families and the families living in kutcha houses. A provision of Rs 2,800 crore has also been made for ground water-based rural drinking water scheme in Bundelkhand, Purvanchal and Vindhya regions.

Laying huge stress on the power sector, Agarwal said the government remains committed to provide 24 hours power from October 2018 and to every citizen of the state by 2019. He also said the state government will implement new ‘Solar Energy Policy’ soon attracting investment from the private sector.

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Meanwhile, the budget estimates total receipts of over Rs 3,77,191 crore for 2017-18, including Rs 3,19,397 crore revenue receipts and Rs 57,793 crore capital receipts. In the revenue receipts the share of taxes would be Rs 2,32,908 crore. Out of it, taxes realised by the state would be Rs 1,11,502 crore and the state’s share in central taxes Rs 1,21,407 crore. Of the expenditure, Rs 3,07,119 crore will be revenue expenditure and Rs 77,542 crore capital expenditure.

The Budget estimates a fiscal deficit of Rs 42,968 crore during 2017-18 or 2.97% of the GSDP. Meanwhile, Rs 12,279 crore is estimated as the revenue surplus. The public debt of UP is estimated at 28.6% of the GSDP.

After deducting total expenditure from receipts of consolidated fund, a deficit of Rs 7,468.83 crore is estimated. Besides, net receipt of Rs 7,600 crore is estimated from public account.

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