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Uttar Pradesh State Budget 2017-18 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttar Pradesh FY 2017-18

Uttar Pradesh State Budget 2017-18 Budget at a Glance

Total Receipts

Rs 2.37 lakh crore

+12.9%

Total Expenditure

Rs 2.9 lakh crore

+14.2%

Fiscal Deficit

3.0%

Rs 48,000 crore

Capital Expenditure

Rs 42,000 crore

+16.7%

Tax Revenue

Rs 1.28 lakh crore

+13.3%

Interest Payments

Rs 34,000 crore

12% of expenditure

Uttar Pradesh Revenue Receipts 2017-18

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1.28 lakh crore (54.0%)
Non-Tax Revenue
Rs 1.09 lakh crore (46.0%)

Uttar Pradesh Expenditure Breakdown 2017-18

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 85.5%
Capital Expenditure 14.5%

Fiscal Deficit as % of GSDP — Uttar Pradesh 2017-18

The fiscal deficit for Uttar Pradesh in 2017-18 is 3.0% of GSDP (Rs 48,000 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 is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 34,000 crore consume 11.7% of total expenditure.

Uttar Pradesh State Budget 2017-18 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 2.77 lakh crore100%
1. Revenue ReceiptsRs 2.37 lakh crore85.6%
a. Own Tax RevenueRs 1.28 lakh crore46.2%
b. Non-Tax RevenueRs 1.09 lakh crore39.4%
B. Total ExpenditureRs 2.9 lakh crore100%
1. Revenue ExpenditureRs 2.48 lakh crore85.5%
2. Capital ExpenditureRs 42,000 crore14.5%
of which: Interest PaymentsRs 34,000 crore11.7%
C. Fiscal DeficitRs 48,000 crore3.0% of GSDP

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

Uttar Pradesh Budget 2017-18 Analysis & Highlights

Key Highlights

  • Uttar Pradesh's total expenditure in 2017-18 reached approximately Rs 3,46,000 crore, the first full-year budget of the Yogi Adityanath-led BJP government elected with a historic 325-seat majority.
  • Revenue receipts grew to Rs 2,98,000 crore as the first year of GST implementation replaced the state VAT system from July 2017.
  • The GST transition created revenue uncertainty, with the state receiving Rs 12,000 crore in compensation from the central government for shortfalls.
  • Agriculture allocation of Rs 30,000 crore included Rs 5,000 crore for farm loan waiver covering loans up to Rs 1 lakh for 86 lakh small and marginal farmers.
  • Education spending at Rs 52,000 crore focused on quality improvement with Operation Kayakalp for school infrastructure upgrades.
  • The Purvanchal Expressway construction commenced with Rs 4,800 crore first-year allocation for the 340-km Lucknow-Ghazipur corridor.
  • Health expenditure crossed Rs 20,000 crore with enhanced focus on encephalitis prevention in Gorakhpur following the BRD Hospital tragedy.
  • Power sector received Rs 20,000 crore as the Saubhagya scheme targeted 100% household electrification by March 2019.
  • Rural development spending at Rs 35,000 crore included Rs 10,000 crore for Swachh Bharat Mission toilet construction.
  • Law and order allocation rose to Rs 16,000 crore as the government prioritized anti-Romeo squads and encounter-based policing.
  • Urban development of Rs 13,000 crore included Lucknow Metro Phase 1 inauguration and Kanpur-Varanasi Metro approval.
  • The Kumbh Mela 2019 preparation in Prayagraj (renamed from Allahabad) received Rs 4,200 crore dedicated allocation.
  • Industrial investment commitments of Rs 4.28 lakh crore were announced at the UP Investors Summit in Lucknow.
  • Social welfare at Rs 22,000 crore expanded the Ujjwala LPG scheme with 1.5 crore UP beneficiaries.
  • Fiscal deficit stood at 3.4% of GSDP as the farm loan waiver and GST compensation mechanism adjusted fiscal dynamics.

Compare Uttar Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2013-142014-152015-162016-172017-18
Total ExpenditureRs 2.54 lakh croreRs 2.9 lakh crore
Revenue ReceiptsRs 2.1 lakh croreRs 2.37 lakh crore
Capital ExpenditureRs 36,000 croreRs 42,000 crore
Fiscal Deficit (% GSDP)3.0%3.0%
Own Tax RevenueRs 1.13 lakh croreRs 1.28 lakh crore

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

Understanding Uttar Pradesh State Budget 2017-18

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