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Informist, Friday, Feb. 21, 2025

 

By Krity Ambey

 

NEW DELHI – Uttar Pradesh has announced an ambitious plan to cut its fiscal deficit to 2.97% of Gross State Domestic Product in the next financial year starting Apr. 1 from the revised estimate of 3.45% for 2024-25 (Apr-Mar). The revised estimate for fiscal deficit for the current financial year is marginally lower than the Budget estimate of 3.46% of GSDP, according to the state Budget for FY26 presented on Thursday by Finance Minister Suresh Kumar Khanna.

 

In absolute terms, Uttar Pradesh's fiscal deficit for next year is estimated to be INR 914 billion, against the revised estimate of INR 948.05 billion for FY25. The state had a fiscal deficit of INR 807.23 billion in FY24. 

According to the Budget documents uploaded by Uttar Pradesh's finance department on Friday, the nominal GSDP growth is expected to grow by 11.9% in FY26 compared with 8.0% this year. 

 

The Budget has raised the state's capital outlay for FY26 by 11.9% to INR 1.65 trillion. However, it has cut the capital outlay for the current year to INR 1.48 trillion from INR 1.55 trillion in the Budget estimate. Uttar Pradesh's capital outlay accounts for 20% of its projected total expenditure of INR 8.09 trillion in FY26.

 

The state's revenue expenditure is projected to rise 19.4% to INR 5.83 trillion in FY26. The revenue expenditure for FY25 has been revised down to INR 4.89 trillion from INR 5.33 trillion in the Budget estimate. Uttar Pradesh has pegged a revenue surplus of INR 795.16 billion for FY26, against the revised estimate of INR 590.08 billion for the current fiscal.

 

Uttar Pradesh's revenue receipts are projected to grow to INR 6.63 trillion next year from INR 5.48 trillion in FY25. The state has projected total receipts of INR 7.79 trillion in FY26. In the current year, total receipts are projected to grow 10.9% to INR 6.52 trillion.

 

The state has raised its market borrowing for FY26 to INR 771.50 billion from the revised estimate of INR 761.50 billion in the current year. The revised market borrowing for the current financial year is sharply lower than the borrowing of INR 976.50 billion in FY24.

 

Uttar Pradesh has borrowed only INR 283 billion so far in the current financial year and may borrow almost half of the projected INR 761.50 billion in March alone. The state tends to raise a substantial share of its market borrowing in the last month of the fiscal year. In FY24, it had borrowed 316.23 billion in March.  End   

 

Edited by Saji George Titus

 

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