Uttar Pradesh’s Gross State Domestic Product (GSDP) grew at 10.31% between 2019-2020 and 2023-2024, and with an increase of 11.55% (over the previous year) in 2023-2024, it was higher than the GDP growth that year. UP’s GSDP, which was ₹17,00,062 crore (at current prices) in 2019-2020, reached ₹25,47,861 crore in 2023-2024.
The Comptroller and Auditor General (CAG) has made these observations in its report on the state’s finances for 2023-2024 tabled by the state government in the legislative assembly here on Tuesday.
The CAG observed that the per capita GSDP of the state ( ₹1,07,468) though increased during 2023-2024 by 10.42%, it was less than per capita GDP ( ₹2,11,725) during 2023-2024 as compared to 2022-2023 .
On the UP government’s priorities for expenditure, the CAG observed that enhancing human development levels required the states to step up their expenditure on key social services like education, health, etc -- the higher the ratio of these components to total expenditure, the better the quality of expenditure.
The state government’s ratio of expenditure on health and family welfare vis-à-vis its total expenditure decreased from 5.53% in 2019-2020 to 5.27% in 2023-2024. It was more than the average of general category states in 2019-2020 and went below this average in 2023-2024. Its expenditure on education vis-à-vis the total expenditure also decreased from 15.34% in 2019-2020 to 13.16% in 2023-2024.
About the state government’s quality of investment in the public sector undertakings (PSUs), the CAG observed that capital expenditure, investment made and loans given to the state’s loss-making PSUs and the PSUs where the net worth completely eroded is not sustainable and affected the quality of expenditure.
{{/usCountry}}About the state government’s quality of investment in the public sector undertakings (PSUs), the CAG observed that capital expenditure, investment made and loans given to the state’s loss-making PSUs and the PSUs where the net worth completely eroded is not sustainable and affected the quality of expenditure.
{{/usCountry}}While the return on investment was ₹49.66 crore (0.03%) in 2023-2024, it was between 0.03% and 0.14% from 2019-2020 to 2023-2024, whereas the state government paid 7.24% and 7.72% interest on its borrowings. So, the difference in the cost of government borrowings and return on investment in the PSUs and other entities between 2019-2020 and 2023-2024 was to the tune of ₹56,492 crore.
The CAG observed that through public sector enterprises, the state government raised ₹38,464.14 crore as extra-budget borrowings which did not flow into the consolidated fund, but were required to be repaid and serviced through the budget.
The CAG also made observations about the state government’s funds being blocked in incomplete projects which impinges negatively on the quality of expenditure projects and deprives the state of the intended benefits for a prolonged period. It noted that a total of 608 projects -- 603 of the public works department (PWD) and five of the irrigation department-- with an estimated cost of ₹8644.93 crore were incomplete as on March 31, 2024, and an expenditure of ₹4444.68 crore was already incurred on them.