Chief Minister Yogi Adityanath announced in the Uttar Pradesh Assembly on Thursday that the state has achieved a revenue surplus status and is now capable of meeting most of its needs independently.
“To support Prime Minister Narendra Modi’s goal of a $5 trillion economy and to establish Uttar Pradesh as a $1 trillion economy, we have introduced a supplementary budget of Rs 12,210 crore,” he stated. He noted that 44% of the funds from the current fiscal budget for the 2024-25 financial year have been released, with 20% already utilised. The budget for 2024-25 has now reached Rs 7.5 lakh crore, doubling the size of the 2015-16 budget.
The CM emphasised that the state budget has been expanded to meet Uttar Pradesh’s growing needs. He highlighted that Rs 70,000 crore has been transferred through Direct Benefit Transfer (DBT) for 196 schemes across 11 departments, directly benefiting poor individuals. This, he noted, demonstrates how DBT provides a corruption-free system for the underprivileged.
Reflecting on Uttar Pradesh’s transformation, the chief minister said, “The UP we inherited and the UP we have today are evident to everyone.”
He mentioned that after the passage of the 2024-25 budget in February, its implementation began immediately with the start of the financial year in April. The budget size for 2024-25 is Rs 7.36 lakh crore.
CM Yogi highlighted that the capital expenditure reflects significant investments in major construction projects.
“This supplementary budget will boost investment in Uttar Pradesh. Today, both the GDP and per capita income of the state have more than doubled. UP is progressing in the right direction, and the new developments necessitated this supplementary budget,” he said.
He asserted that UP has the potential to become a leading economy in the country. “When we came to power, our economy was ranked sixth or seventh, and the state was facing an identity crisis. However, that perception has changed, and today UP has become the second-largest economy in the country,” he added.
“We are developing a roadmap for the next three to five years, focusing on major advancements in education, health, and skill development. These efforts have created new employment opportunities within the state,” the CM said.
He cited Thrissur in Tamil Nadu, where previously two lakh people from UP worked, noting that many have returned to their home state due to new job opportunities.
The chief minister stated that Uttar Pradesh has successfully increased its share in the national GDP, from 6-7% to 9-10%. He highlighted that UP is now among the states that have established themselves as revenue surplus through effective resource mobilization, allowing it to meet most of its needs internally.
CM Yogi mentioned that strict measures have been implemented to combat tax evasion. He pointed out that in 2017, UP’s Credit Deposit (CD) ratio was 44%, but it has now increased to 60%, indicating a rise in employment opportunities. He also noted that the Reserve Bank requires states to adhere to financial discipline when preparing budgets and taking loans. If a state exceeds the allowed limit, national banks will not approve further loans. UP has made significant progress in this area, maintaining its Fiscal Responsibility and Budget Management (FRBM) ratio at 2.86, well below the maximum limit of 3.5, reflecting strong financial discipline.
