UP CAG report: Under the leadership of CM Yogi, Uttar Pradesh has become a model state of financial discipline. The CAG report has revealed that UP has reached the top in capital expenditure and investment. UP has become the financial role model state of the country.
Uttar Pradesh News: According to the State Finance Accounts 2022-2023 published by the Comptroller and Auditor General of India (CAG), Uttar Pradesh has been leading among all the 28 states in the country in terms of fiscal discipline and investment. Under the leadership of Chief Minister Yogi Adityanath, the state made a total capital expenditure of Rs 1,03,237 crore in the financial year 2022-23, which is the highest in the country. This amount is 210.68% of the state’s net public debt receipts, which shows that the government has spent the loan taken only on development and capital formation activities. This is considered an ideal financial situation.
How Yogi made UP a “Financial Role Model State”
Under the leadership of Chief Minister Yogi Adityanath, Uttar Pradesh not only kept revenue expenditure under control but also created new history in investment and capital expenditure. Financial discipline, transparency and development oriented expenditure have made UP the “Financial Role Model State” of the country.
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What does Uttar Pradesh report say about revenue savings?
- Uttar Pradesh’s revenue receipts have been more than its revenue expenditure, meaning the state is in a position of revenue savings. The state’s own revenue (tax and non-tax) stood at 45% of revenue receipts, while in industrialized states like Haryana, Telangana, Maharashtra and Gujarat it remained between 70-80%. The state spent 9.39% of the total expenditure on investment, which is much higher than Maharashtra (3.81%), Gujarat (3.64%) and Bihar (1.65%). Along with this, Uttar Pradesh has received the maximum amount in central taxes from 2013-14 to 2022-23.
- Lower expenditure on salaries-pension-interest Uttar Pradesh spent 42.57% of total revenue expenditure on committed expenditure (salaries, pensions and interest payments), which is lower than Haryana (55.27%) and Tamil Nadu (50.97%). The state spent 12.43% of its total expenditure on salaries, while 16 states spent more than 20%. At the same time, expenditure on pension was 12.15% of the total expenditure, which is less than many states (like Himachal Pradesh 15%+). Similarly, interest payments remained 8.90% of the total expenditure, while 10 states spent more than 10% on this item. Expenditure on subsidies stood at only 4.40%, while Punjab spent 17% of its expenditure on subsidies.
Balanced expenditure on major construction and grants-in-aid
The state spent 11.89% of the total expenditure on major construction works, indicating the government’s commitment towards infrastructure development. Expenditure on grants-in-aid (general and salaries) was 22.85%, which is less than other big states like Maharashtra, Andhra Pradesh and Telangana. Similarly, expenditure on grants-in-aid (capital formation) was 2.27%, while in Assam, Jharkhand and Tripura it was more than 5%.
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State conforming to FRBM norms and having minimum liability
In the financial year 2022-23, Uttar Pradesh has announced F.R.B.M. Followed all the standards of the Act. The state’s total liabilities stood at 29.32% of GSDP, while total guarantees stood at only 7.56%. This is a testament to the financial discipline and stability of the government.