The Uttar Pradesh government on Friday presented an election-oriented budget for the fiscal year 2018-2019 that has a tinge of saffron and focused on doubling farmers’ income, infrastructure development and the health sector.
“We have formulated the budget for the state’s all-round development, keeping in mind all sections of society, including farmers, youth, women and rural development while maintaining financial discipline,” chief minister Yogi Adityanath said while briefing reporters after the budget.
The 2019 parliamentary elections are crucial for the BJP-led state government as the saffron party and its allies won 73 of the 80 Lok Sabha seats in Uttar Pradesh in 2014 and aim to grab all 80 seats next year.
With a budgetary size of Rs 4,28,384.53 crore, an increase of 11.4% against the previous year (2017-2018), the budget incorporates new schemes worth Rs 14,341.89 crore for 2018-2019.
Special emphasis was given on sectors directly related to the people such as health, education and religious tourism.
However, a major challenge of mobilising resources stares the state government in the face as no new taxes have been proposed to fund the budgetary allocations despite the declining receipts that are expected to come down from the budgeted Rs 3,77,190.88 crore to Rs 3,60,165.78 crore in 2017-2018.
{{/usCountry}}However, a major challenge of mobilising resources stares the state government in the face as no new taxes have been proposed to fund the budgetary allocations despite the declining receipts that are expected to come down from the budgeted Rs 3,77,190.88 crore to Rs 3,60,165.78 crore in 2017-2018.
{{/usCountry}}Minister for finance Rajesh Agarwal painted a rosy picture in his budget speech, saying the Uttar Pradesh Investment Summit is being organised on February 21 and 22 to develop the state as a potential destination for global investment.
Agarwal said a roadmap has been worked out for doubling the income of farmers and an amendment to the Uttar Pradesh Mandi Act has been proposed to ease the process of marketing the farmers’ produce.
Here is a look at sector-wise schemes and allocations:
Agriculture
Agarwal spoke about crop insurance schemes, development of tribes living in remote border villages and the introduction of the digital payment process. He said projects worth Rs 2,500 crore have been proposed for the development of rural roads.
“Allocation for irrigation projects include Rs 1,701 crore for Central Ganga Canal Project and Rs 500 crore for Kanhar Irrigation Project,” he said.
Infrastructure
Major allocations for infrastructure projects include Rs 650 crore for Bundelkhand Expressway, Rs 1,000 crore for Poorvanchal Expressway, Rs 500 crore for Gorakhpur Link Expressway and Rs 11,343 crore for construction of new roads.
Other major allocations for infrastructure projects include Rs 500 crore for the recently opened Agra-Lucknow Expressway, Rs 250 crore for new Metro rail projects and Rs 250 crore to be provided for Delhi, Ghaziabad and Meerut corridor regional rapid system project.
Start-up and health
Rs 250 crore has been earmarked to set up a Start-Up Fund and the introduction of robotic surgery at the Sanjay Gandhi (PG) Institute of Medical Sciences in Lucknow is a major announcement for state’s health sector.
Minorities and religious tourism
For minorities, Rs 2,757 crore has been earmarked. It includes Rs 400 crore for modernisation of madrasas.
A sum of Rs 1,500 crore has been provided for the Kumbh Mela and funds have also been allocated to promote religious tourism that includes Rs 100 crore earmarked for Braj Tirth Vikas Parishad (Braj Tirth Development Board).
Deficit and measures
A close scrutiny of budgetary proposals indicates that the state government proposes to spend Rs 4,28,384.52 crore against estimated total receipts of Rs 4,20,899.46 crore leaving a deficit of Rs 7,485.06 crore.
The state government proposes to transfer Rs 8,100 crore from public account to meet the deficit. With an opening balance of Rs 669.29 crore and taking into account the net balance of Rs 614.94 crore, the state government will have a closing balance of Rs 1,284.23 crore.
The government’s fiscal deficit is expected to reach Rs 44,053.32 crore (2.96% of Gross State Domestic Product or GSDP) in 2018-2019 against Rs 41,073.66 crore (2.98% of GSDP) in 2017-2018.