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Uttarakhand State Budget 2016-17 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttarakhand FY 2016-17

Uttarakhand State Budget 2016-17 Budget at a Glance

Total Receipts

Rs 25,500 crore

+10.9%

Total Expenditure

Rs 29,200 crore

+12.3%

Fiscal Deficit

2.5%

Rs 3,700 crore

Capital Expenditure

Rs 4,000 crore

+14.3%

Tax Revenue

Rs 11,500 crore

+12.7%

Interest Payments

Rs 2,500 crore

9% of expenditure

Uttarakhand Revenue Receipts 2016-17

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 11,500 crore (69.7%)
Non-Tax Revenue
Rs 5,000 crore (30.3%)

Uttarakhand Expenditure Breakdown 2016-17

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 86.3%
Capital Expenditure 13.7%

Fiscal Deficit as % of GSDP โ€” Uttarakhand 2016-17

The fiscal deficit for Uttarakhand in 2016-17 is 2.5% of GSDP (Rs 3,700 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. Uttarakhand is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 2,500 crore consume 8.6% of total expenditure.

Uttarakhand State Budget 2016-17 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 30,500 crore100%
1. Revenue ReceiptsRs 25,500 crore83.6%
a. Own Tax RevenueRs 11,500 crore37.7%
b. Non-Tax RevenueRs 5,000 crore16.4%
B. Total ExpenditureRs 29,200 crore100%
1. Revenue ExpenditureRs 25,200 crore86.3%
2. Capital ExpenditureRs 4,000 crore13.7%
of which: Interest PaymentsRs 2,500 crore8.6%
C. Fiscal DeficitRs 3,700 crore2.5% of GSDP

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

Uttarakhand Budget 2016-17 Analysis & Highlights

Key Highlights

  • Total expenditure rose to approximately Rs 35,200 crore, a measured 8% increase reflecting continued reconstruction investment and expanded social sector programmes.
  • Revenue receipts reached Rs 30,000 crore, with own tax revenue at Rs 10,500 crore despite the disruption from demonetisation announced in November 2016.
  • Demonetisation severely impacted Uttarakhand's tourism and informal economy โ€” the peak winter tourism season saw a 30% drop in visitor arrivals at hill stations.
  • Cash-dependent pilgrim economy in Haridwar and Rishikesh was disrupted for months as small businesses, dharamshalas, and local vendors faced acute cash shortages.
  • The state prepared for elections in early 2017, with Chief Minister Harish Rawat's government increasing welfare spending and infrastructure announcements.
  • Road construction allocation reached Rs 5,000 crore as the all-weather road programme for hill districts gained momentum.
  • Education spending at Rs 6,200 crore included Rs 400 crore for new degree colleges in underserved hill towns and expansion of ITI training capacity.
  • Health sector received Rs 3,500 crore with emphasis on telemedicine services to bridge the gap in specialist healthcare access for remote hill populations.
  • GST preparation dominated the commercial tax department's attention, with Rs 150 crore allocated for IT infrastructure and staff training ahead of the July 2017 rollout.
  • Kedarnath reconstruction entered its final phase with Rs 2,000 crore for completing the rebuilt shrine complex and surrounding infrastructure.
  • Hydropower revenue at Rs 800 crore from operational projects provided important non-tax income, though new project clearances remained slow.
  • Agriculture allocation at Rs 2,500 crore included the Mukhya Mantri Kisan Nodal Yojana for direct farmer support and Rs 300 crore for cold chain infrastructure.
  • Revenue deficit widened to Rs 2,000 crore as pre-election spending pressures and demonetisation-related revenue shortfall compounded.
  • Fiscal deficit at Rs 4,800 crore reached 4.2% of GSDP, the highest in the state's history.
  • The forest fire season of 2016 destroyed over 2,000 hectares of pine forest, prompting Rs 150 crore for fire management infrastructure.

Compare Uttarakhand Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2012-132013-142014-152015-162016-17
Total Expenditureโ€”โ€”โ€”Rs 26,000 croreRs 29,200 crore
Revenue Receiptsโ€”โ€”โ€”Rs 23,000 croreRs 25,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 3,500 croreRs 4,000 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.3%2.5%
Own Tax Revenueโ€”โ€”โ€”Rs 10,200 croreRs 11,500 crore

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

Understanding Uttarakhand State Budget 2016-17

The Uttarakhand 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.

Uttarakhand 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 Uttarakhand with other states

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