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The Uttar Pradesh Vidhan Sabha is anticipated to convene its winter session during the last week of this month. In this session, the Yogi Adityanath government is set to introduce the first supplementary budget for the fiscal year 2023-24.
Official sources have indicated that the government will be seeking supplementary grants to support ongoing development projects in Ayodhya and various infrastructure initiatives across the state.
The consecration of the temple in Ayodhya has been scheduled for January 22 next year. As a result, various projects related to roads, power, and urban amenities in Ayodhya are progressing rapidly, with many of them aiming for completion before the temple’s inauguration by Prime Minister Narendra Modi.
The supplementary budget carries additional significance because the Lok Sabha elections are on the horizon, expected to take place in April or May. The Yogi Adityanath government is keen to finish major infrastructure projects before the Lok Sabha elections.
Uttar Pradesh Finance Minister Suresh Khanna had presented a state budget of Rs 6,90,242.43 crore for the financial year 2023-24 on February 22. The total expenditure, excluding debt repayment, for 2023-24 is targeted at Rs 6,59,061 crore, marking a 17% increase over the revised estimate of 2022-23. This expenditure will be covered by receipts, excluding borrowings of Rs 5,74,178 crore and net borrowings of Rs 77,933 crore. Total receipts for 2023-24 (excluding borrowings) are projected to see a 19.3% increase over the revised estimate of 2022-23.
The Yogi government has achieved fiscal discipline, leading to a reduction in debt servicing expenditure and a significant decrease in borrowings, thanks to a revenue surplus. The revenue surplus for 2023-24 is estimated to be 2.8% of the gross state domestic product (GSDP) or Rs 68,512 crore, slightly higher than the revised estimates for 2022-23 (2.6% of GSDP).
The government’s resource position is described as comfortable, enabling the financing of new welfare and development schemes without heavy reliance on market borrowing and financial institutions.
Expenditure in various sectors, including power subsidy for the agriculture sector, flood control and irrigation projects, widow pensions, and rural housing, is expected to increase. This increase will be partially facilitated through the supplementary budget, with major expenditures planned for the 2024-25 budget to be presented in the state assembly in February 2024.
For the current fiscal year, the subsidy on electricity consumption by private tube well owners was increased from 50% to 100% in 2023-24, with an allocation of Rs 1,500 crore for this purpose.
Irrigation projects have a provision of Rs 10,952 crore in 2023-24, including Rs 3,400 crore for minor irrigation projects. The widow pension scheme is allocated Rs 4,032 crore in 2023-24, benefiting 32.6 lakh destitute widows. Additionally, under the Pradhan Mantri Awas Yojana (Rural), 12,39,877 houses are earmarked for construction in 2023-24.
