In an effort to transform Uttar Pradesh into a developed state, Chief Minister Yogi Adityanath has introduced a budget of Rs 4,28,384.52 crore for 2018-19. This is 11.4% higher than the last fiscal.
Taking a look at crucial highlights of the budget, the Gross State Domestic Product of Uttar Pradesh for 2018-19 (at current prices) is estimated to be Rs 14,88,934 crore, which is 8% higher than the revised estimates for 2017-18. The Total expenditure for 2018-19 is estimated to be Rs 4,28,385 crore, which is a 16.3% increase over the revised estimates of 2017-18. In 2017-18, there was a decrease of Rs 16,259 crore (4.2%) in the expenditure over the budget estimates.
The budget estimated the total receipts (excluding borrowings) for 2018-19 to be at Rs 3,53,784 crore which is an increase of 15.9% compared to the revised estimates of 2017-18. In 2017-18, Total receipts (excluding borrowings) fell short of the budgeted estimate by Rs 14,369 crore. The Revenue surplus for the next financial year is targeted at 1.82% of the Gross State Domestic Product (GSDP) or Rs 27,099 crore and Fiscal deficit is targeted at Rs 44,053 crore (2.96% of GSDP).
A look at the budget reveals that the allocations for energy, irrigation, and rural development are estimated to witness the highest increase in allocations over the previous year, whereas allocations for agriculture are expected to witness a 59% decrease.
For 2018-19, Capital expenditure, which is responsible for creation of assets (buildings, hospitals etc.) and repayment of loans, is proposed to be Rs 1,06,864 crore, which is an increase of 30.5% over the revised estimates of 2017-18.
On the other hand, Revenue Expenditure that includes payment of salaries, maintenance, etc., is proposed to be Rs 3,21,520 crore, which is an increase of 12.2% over revised estimates of 2017-18. This fiscal year, Uttar Pradesh is expected to spend Rs 62,980 crore on servicing its debt i.e. Rs 30,547 crore on repaying loans, and Rs 32,434 crore on interest payments. This is 20.4% higher than the revised estimates of 2017-18.
The total expenditure in 2018-19 is targeted at Rs 4,28,385 crore. This is 16.3% higher than the revised estimates of 2017-18. This expenditure is proposed to be met through receipts (other than borrowings) of Rs 3,53,784 crore and borrowings of Rs 67,115 crore. Total receipts for 2018-19 (other than borrowings) are expected to be 15.9% higher than the revised estimates of 2017-18.
According to the budget, Uttar Pradesh will spend Rs 11,564 crore on subsidies in 2018-19, which is 15% higher than the budget estimates of 2017-18. Out of the allocations for 2018-19, Rs 6,200 crore will be for energy, and Rs 2,067 crore for agriculture. The state is estimated to spend Rs 45,495 crore on pensions, a 22% increase over 2017-18.
The total revenue receipts for 2018-19 are estimated to be Rs 3,48,619 crore, an increase of 14.3% over the revised estimates of 2017-18. Of this, 43% of the revenue receipts i.e.Rs 1,51,522 crore will be raised by the state through its own resources, and 57% of the revenue receipts, i.e. Rs 1,97,098 crore, will be devolved by the Centre in the form of grants and the state’s share in taxes. The state government has estimated to generate Rs 28,822 crore through non-tax sources in 2018-19. This is an increase of 64.7% over the revised estimates of 2017-18. This is driven by a 187% increase (Rs 8,271 crore) in receipts from the sinking fund (typically maintained to repay debt).
Total own tax revenue of Uttar Pradesh is estimated to be Rs 1,22,700 crore in 2018-19. The tax to GSDP ratio is targeted at 8.2% in 2018-19, which is higher than the revised estimate of 6.9% in 2017-18. This implies that growth in collection of taxes is expected to be higher than the growth in the economy (8%). The budget estimates a revenue surplus of Rs 27,099 crore (or 1.82% of GSDP) in 2018-19.
This implies that revenue receipts are expected to be higher than the revenue expenditure, resulting in a surplus. The estimate indicates that the state is within the target of eliminating revenue deficit, prescribed by the 14th Finance Commission.
In terms of policies for various sectors, Uttar Pradesh has allocated 5.9% of its expenditure on rural development. This is higher than the average (5.6%) of 18 other states.
In the health sector, Uttar Pradesh has allocated 5.5% of its total expenditure on health, which is higher than the average expenditure of 18 other states. A 500-bed super-specialty hospital, and paramedical and nursing college will be constructed at the Dr Ram Manohar Lohia Institute of Medical Sciences, Lucknow.
Further, the emergency medicine department at the Sanjay Gandhi Postgraduate Institute of Medical Sciences will be expanded, and an additional 200 beds will be added.
The government will launch the “Ek Janpad, Ek Utpaad” scheme to promote artisans at the district-level. The state has implemented the “Uttar Pradesh Khanan Neeti-2017” for the mining sector. The policy seeks to control illegal mining and bring transparency. The government has announced to implement an evolved mining system in the state, with assistance from the central government, for satellite tracking of mining activities.
To boost the solar sector, Uttar Pradesh has set a target of generating 10,700 MW of power using solar energy by 2022. The budget allocates Rs 25 crore for setting up grid-connected rooftop solar power plants. Further, Rs 30 crore has been allocated for the Pt. Deen Dayal Upadhyaya Solar Street Light project.
The GSDP of Uttar Pradesh has grown in the range of 4% to 8% between 2012-13 and 2016-17.
The services sector, with a share of 51% in the GSDP, grew by 7% in 2016-17 over the previous year. Agriculture, which contributes 25% to the GSDP, grew by 6.8%. Manufacturing, with a share of 24%, grew by 5.1% in 2016-17. The per capita GSDP of Uttar Pradesh in 2016-17 (at current prices) was Rs 58,626. This is 12% higher than 2015-16, when the per capita GSDP was Rs 52,320.