Yogi Adityanath-led Uttar Pradesh government on Wednesday presented a Rs 6.9 trillion Budget for 2023-24 in the state assebly with emphasis on basic infrastructure, education, healthcare, farmers, women and youth.
Finance minister Suresh Khanna made an outlay of Rs 1.48 trillion for capex in FY24 compared with FY23 revised estimate (RE) of Rs 1.27 trillion, up 16.5%. The state’s fiscal deficit is estimated to decline to 3.48% of GSDP in FY24, down from 3.97% in FY23RE and 2.11% in FY22. The state’s total expenditure is estimated to rise 18% on year to Rs 6.9 trillion in FY24.
Tax revenue receipts are estimated to rise 26% on year to Rs 4.46 trillion in the next financial year, thanks partly to high transfers from the Centre. The state has projected its own tax revenues to rise to 10.8% of GSDP in FY24 from 9% in FY23.
The state’s nominal GSDP is projected to rise by a robust 19% to Rs 24.39 trillion ($300 billion) in FY24, even as the GDP growth at the national level is expected to slow in the year. This seems a bit optimistic. Its GSDP was estimated to grow by 10% in FY23.
The government has set a target of creating 40,000 jobs in the textile sector.
A provision of Rs 21,159 crore has been made for the construction of roads and bridges, whereas Rs 6,209 crore is proposed for its maintenance. An amount of Rs 1,525 crore has been made for roads in rural areas.
Referring to various budget provisions, chief minister Adityanath said: “Before the assembly elections, we had made a total of 130 promises in the manifesto, out of which 110 promises have been included in today’s budget.” He said annual exports from the state have almost doubled to 1.6 trillion compared with around Rs 86,000 crore in 2017-18.
“This budget’s size is double as compared to the budget of 3.4 trillion of 2016-17. No new tax was imposed on the public, while tax exemption was given on petrol and diesel in the state and today petrol and diesel are cheaper in Uttar Pradesh as compared to other states,” Adityanath said.
Despite this, not only has the revenue collection of the state increased but fiscal discipline was also taken full care of and the income of the government has also increased, the CM said.
Referring to the “strong financial position” of the State, the Chief Minister said that earlier around 8% of the budget used to go towards arrears of old loans, but now it has come down to 6% due to efficient financial management. The unemployment rate of UP which was 17-18% in 2016-17 has come down to 4% now.
The FY24 budget has a provision of Rs 3,600 crore for the distribution of tablets/smartphones to eligible students under the Swami Vivekananda Youth Empowerment Scheme and Rs 60 crore under IT and startups policy.
An amount of Rs 1,050 crore is proposed under the MukhyamantriKanyaSumagalaYojana and Rs 600 crore will be spent on the MukhyamantriSamuhikVivahYojana. The government will Rs 4,032 crore for the maintenance of destitute widows.