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Uttar Pradesh State Budget 2004-05 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttar Pradesh FY 2004-05

Uttar Pradesh State Budget 2004-05 Budget at a Glance

Total Receipts

Rs 35,800 crore

+14.7%

Total Expenditure

Rs 54,000 crore

+10.9%

Fiscal Deficit

5.1%

Rs 14,580 crore

Capital Expenditure

Rs 9,500 crore

+11.8%

Tax Revenue

Rs 19,690 crore

+14.7%

Interest Payments

Rs 9,380 crore

17% of expenditure

Uttar Pradesh Revenue Receipts 2004-05

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 19,690 crore (78.6%)
Non-Tax Revenue
Rs 5,370 crore (21.4%)

Uttar Pradesh Expenditure Breakdown 2004-05

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 82.4%
Capital Expenditure 17.6%

Fiscal Deficit as % of GSDP — Uttar Pradesh 2004-05

The fiscal deficit for Uttar Pradesh in 2004-05 is 5.1% of GSDP (Rs 14,580 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Uttar Pradesh's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 9,380 crore consume 17.4% of total expenditure.

Uttar Pradesh State Budget 2004-05 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 47,200 crore100%
1. Revenue ReceiptsRs 35,800 crore75.8%
a. Own Tax RevenueRs 19,690 crore41.7%
b. Non-Tax RevenueRs 5,370 crore11.4%
B. Total ExpenditureRs 54,000 crore100%
1. Revenue ExpenditureRs 44,500 crore82.4%
2. Capital ExpenditureRs 9,500 crore17.6%
of which: Interest PaymentsRs 9,380 crore17.4%
C. Fiscal DeficitRs 14,580 crore5.1% of GSDP

Source: Uttar Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Uttar Pradesh Budget 2004-05 Analysis & Highlights

Key Highlights

  • UP's total expenditure for 2004-05 reached Rs 62,000 crore as the UPA government at the Centre enhanced centrally sponsored scheme funding to states.
  • Revenue receipts grew strongly to Rs 41,500 crore, a 10% increase driven by both improved own-tax performance and a 15% jump in central transfers.
  • The newly announced MNREGA was expected to bring Rs 3,000+ crore annually to UP, transforming rural employment in the state's 70 most backward districts.
  • Capital expenditure crossed Rs 6,500 crore for the first time, with major irrigation projects in Bundelkhand receiving Rs 2,200 crore.
  • Sales tax modernisation including computerised check-posts generated Rs 8,900 crore, a 12% improvement over the previous year.
  • Agriculture allocation at Rs 5,800 crore prioritised wheat procurement infrastructure and cold storage development in potato-growing districts.
  • Education spending reached Rs 12,500 crore with 25,000 additional teacher recruitment announced under the SSA umbrella.
  • Health expenditure crossed Rs 3,000 crore for the first time, with the National Rural Health Mission preparations commencing.
  • The Noida Special Economic Zone was notified, expected to attract Rs 5,000 crore in private investment over five years.
  • Fiscal deficit improved to 3.6% of GSDP as revenue buoyancy from the national growth boom reached UP.
  • Power sector reforms progressed with metering of 11 kV feeders reducing theft by an estimated 5% in pilot districts.
  • Industrial investment proposals worth Rs 12,000 crore were received under the new UP Industrial Policy 2004.
  • Road development received Rs 2,500 crore with emphasis on connecting backward district headquarters to the national highway grid.
  • Social welfare schemes expanded with Rs 800 crore for Samajwadi Pension Yojana covering 40 lakh beneficiaries.

Compare Uttar Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2000-012001-022002-032003-042004-05
Total Expenditure———Rs 48,700 croreRs 54,000 crore
Revenue Receipts———Rs 31,200 croreRs 35,800 crore
Capital Expenditure———Rs 8,500 croreRs 9,500 crore
Fiscal Deficit (% GSDP)———5.0%5.1%
Own Tax Revenue———Rs 17,160 croreRs 19,690 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Uttar Pradesh State Budget 2004-05

The Uttar Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Uttar Pradesh Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Uttar Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states