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Uttar Pradesh State Budget 2006-07 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttar Pradesh FY 2006-07

Uttar Pradesh State Budget 2006-07 Budget at a Glance

Total Receipts

Rs 49,000 crore

+18.1%

Total Expenditure

Rs 71,000 crore

+14.1%

Fiscal Deficit

3.8%

Rs 14,200 crore

Capital Expenditure

Rs 13,500 crore

+20.5%

Tax Revenue

Rs 26,950 crore

+18.1%

Interest Payments

Rs 11,400 crore

16% of expenditure

Uttar Pradesh Revenue Receipts 2006-07

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 26,950 crore (78.6%)
Non-Tax Revenue
Rs 7,350 crore (21.4%)

Uttar Pradesh Expenditure Breakdown 2006-07

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 81.0%
Capital Expenditure 19.0%

Fiscal Deficit as % of GSDP — Uttar Pradesh 2006-07

The fiscal deficit for Uttar Pradesh in 2006-07 is 3.8% of GSDP (Rs 14,200 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 11,400 crore consume 16.1% of total expenditure.

Uttar Pradesh State Budget 2006-07 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 63,000 crore100%
1. Revenue ReceiptsRs 49,000 crore77.8%
a. Own Tax RevenueRs 26,950 crore42.8%
b. Non-Tax RevenueRs 7,350 crore11.7%
B. Total ExpenditureRs 71,000 crore100%
1. Revenue ExpenditureRs 57,500 crore81.0%
2. Capital ExpenditureRs 13,500 crore19.0%
of which: Interest PaymentsRs 11,400 crore16.1%
C. Fiscal DeficitRs 14,200 crore3.8% of GSDP

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

Uttar Pradesh Budget 2006-07 Analysis & Highlights

Key Highlights

  • Uttar Pradesh's total expenditure in 2006-07 surged to Rs 62,000 crore as the Mulayam Singh government accelerated spending ahead of the 2007 elections.
  • Revenue receipts crossed Rs 48,000 crore, a 16% growth driven by the national economic boom and improved VAT collections.
  • VAT implementation from January 2008 was in preparation, with Rs 400 crore allocated for IT infrastructure and dealer migration.
  • The Lucknow-Agra Expressway construction progressed with Rs 3,000 crore in cumulative spending on land and civil works.
  • NREGA implementation generated 120 million person-days of employment across 22 districts in the initial rollout.
  • Capital expenditure reached Rs 8,500 crore, targeting road construction, power infrastructure, and urban development.
  • Noida-Greater Noida attracted Rs 15,000 crore in fresh investment commitments from electronics and automobile sectors.
  • Power sector reforms created five distribution companies but financial losses continued at Rs 7,000 crore annually.
  • Sugarcane price raised to Rs 125 per quintal, the highest among major sugar-producing states.
  • Education spending reached Rs 9,500 crore with Sarva Shiksha Abhiyan covering 92% of primary school age children.
  • The state achieved revenue surplus for the first time in over a decade, a landmark fiscal achievement.
  • Health spending of Rs 3,200 crore included NRHM scale-up across all 70 districts.
  • Law and order spending of Rs 4,500 crore included UP Police modernization and encounter policy implementation.
  • Social welfare spending of Rs 3,000 crore targeted OBC reservation-linked programs and minority welfare.

Compare Uttar Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2002-032003-042004-052005-062006-07
Total Expenditure———Rs 62,200 croreRs 71,000 crore
Revenue Receipts———Rs 41,500 croreRs 49,000 crore
Capital Expenditure———Rs 11,200 croreRs 13,500 crore
Fiscal Deficit (% GSDP)———4.6%3.8%
Own Tax Revenue———Rs 22,825 croreRs 26,950 crore

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

Understanding Uttar Pradesh State Budget 2006-07

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