E-Paper
Government needs to boost rate of GSDP growth
Minister for finance Suresh Khanna, in his budget address in the state legislative assembly on Wednesday, said Uttar Pradesh’s GSDP grew 16.8 percent in 2021-2022. This is more than India’s growth rate. The GSDP is estimated to grow 19 percent in 2023-2024.
Uttar Pradesh government will need to accelerate the rate of the GSDP growth even further to achieve the objective of making the state a trillion-dollar economy by 2027.
Minister for finance Suresh Khanna, in his budget address in the state legislative assembly on Wednesday, said Uttar Pradesh’s GSDP grew 16.8 percent in 2021-2022. He said this is more than India’s growth rate. He said the GSDP is estimated to grow 19 percent in 2023-2024.
Chief minister Yogi Adityanath has set the target of making the state a trillion-dollar economy by 2027. Yogi has been monitoring the situation consistently. The state government recently organized the Global Investors Summit-2023 and the state government says it has received investment proposals of ₹33.50 lakh crore. When implemented, the investment is bound to give a big push to the state’s economy and the GSDP in coming years.
“Uttar Pradesh government had set an ambitious goal of making the state a trillion-dollar economy by the year 2027 considering the base year GSDP in the year 2022-23 . The budget projects a GSDP of ₹2439171 cr for the year 2023-24 registering a growth rate of 19.08% over the GSDP of ₹2048234 cr in the year 2022-23. In dollar terms, the GSDP in 2023-24 at the current exchange rate of ₹82.84 to a dollar, would be 294.44 billion dollar. If this is to grow to 1 trillion in the next four years, this would require a CAGR (compound annual growth rate) of 35.75 %, assuming that rupee does not depreciate any further. In the more likely case of rupee depreciating, the required CAGR of GSDP would still be higher. Thus achieving a trillion dollar economy is truly ‘ Herculean’ task,” said Professor Yashvir Tyagi, former head of department, department of economics, Lucknow University.
The state government’s analysis about the UP’s financial situation, as given with the state budget, indicates that the state’s GSDP saw a negative growth from ₹1940527 crore in 2020-2021 to ₹1863221 crore in 2021-2022. The GSDP is, however, estimated to grow to ₹2048324 crore in 2022-2023 and ₹2439171 crore in 2023-2024.
The state government’s analysis also indicates that the state’s total indebtedness is estimated to have grown over three times in the past 10 years from going up ₹241685.87 crore in 2013-2014 to ₹784113.65 crore. The state’s indebtedness is however estimated to come down from 34.2 percent of the GSDP in 2022-2023 to 32.1 percent of the GSDP in 2023-2024.
The state government had presented annual budget of ₹6.15 lakh crore for 2022-2023 on May 26, 2022. It later presented a supplementary budget of ₹33,769.55 crore on December 5, 2022 thereby taking the total size of the budget to ₹6.50 lakh crore. The estimates for expenditure indicate that the state government may be able to spend only ₹5.85 lakh crore of the budget in 2022-2023.
