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Uttar Pradesh State Budget 2007-08 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttar Pradesh FY 2007-08

Uttar Pradesh State Budget 2007-08 Budget at a Glance

Total Receipts

Rs 58,000 crore

+18.4%

Total Expenditure

Rs 82,000 crore

+15.5%

Fiscal Deficit

3.6%

Rs 15,580 crore

Capital Expenditure

Rs 16,000 crore

+18.5%

Tax Revenue

Rs 31,900 crore

+18.4%

Interest Payments

Rs 12,580 crore

15% of expenditure

Uttar Pradesh Revenue Receipts 2007-08

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 31,900 crore (78.6%)
Non-Tax Revenue
Rs 8,700 crore (21.4%)

Uttar Pradesh Expenditure Breakdown 2007-08

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.5%
Capital Expenditure 19.5%

Fiscal Deficit as % of GSDP — Uttar Pradesh 2007-08

The fiscal deficit for Uttar Pradesh in 2007-08 is 3.6% of GSDP (Rs 15,580 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 12,580 crore consume 15.3% of total expenditure.

Uttar Pradesh State Budget 2007-08 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 73,000 crore100%
1. Revenue ReceiptsRs 58,000 crore79.5%
a. Own Tax RevenueRs 31,900 crore43.7%
b. Non-Tax RevenueRs 8,700 crore11.9%
B. Total ExpenditureRs 82,000 crore100%
1. Revenue ExpenditureRs 66,000 crore80.5%
2. Capital ExpenditureRs 16,000 crore19.5%
of which: Interest PaymentsRs 12,580 crore15.3%
C. Fiscal DeficitRs 15,580 crore3.6% of GSDP

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

Uttar Pradesh Budget 2007-08 Analysis & Highlights

Key Highlights

  • Uttar Pradesh's total expenditure in 2007-08 reached Rs 72,000 crore under Mayawati's BSP government, the largest single-party majority in the state since 1991.
  • Revenue receipts surged to Rs 56,000 crore, growing 17% on the back of the national economic boom and improved tax collection.
  • Mayawati's ambitious monument and park projects in Lucknow received Rs 2,500 crore allocation.
  • The national farm loan waiver included UP's share of Rs 12,000 crore covering 8 million farmer accounts.
  • VAT replaced sales tax from January 2008, with first-quarter collections showing 15% improvement over the comparable period.
  • Capital expenditure of Rs 9,500 crore included Rs 3,000 crore for Lucknow infrastructure including parks and monuments.
  • Power sector losses continued at Rs 7,500 crore despite reforms, with AT&C losses at 36%.
  • NREGA expanded to all 70 districts with Rs 4,500 crore expenditure generating 250 million person-days.
  • SC/ST welfare spending rose to Rs 3,500 crore, the highest in state history, reflecting BSP's core priorities.
  • The Yamuna Expressway construction commenced with Rs 2,000 crore in initial land acquisition and civil works.
  • Education spending of Rs 11,000 crore included Kasturba Gandhi Balika Vidyalaya expansion to 500 schools.
  • The 2008 global financial crisis began affecting Noida's IT sector in the final quarter.
  • Fiscal deficit at 3.2% of GSDP was close to the FRBM target for the first time.
  • Health spending of Rs 3,800 crore continued NRHM implementation with 70,000 ASHA workers deployed statewide.

Compare Uttar Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2003-042004-052005-062006-072007-08
Total ExpenditureRs 71,000 croreRs 82,000 crore
Revenue ReceiptsRs 49,000 croreRs 58,000 crore
Capital ExpenditureRs 13,500 croreRs 16,000 crore
Fiscal Deficit (% GSDP)3.8%3.6%
Own Tax RevenueRs 26,950 croreRs 31,900 crore

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

Understanding Uttar Pradesh State Budget 2007-08

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