Yogi’s last Budget before UP polls likely to hit Rs 5.5 trillion

Virendra Singh Rawat

Lucknow / Jan 27, 2021

The last Annual Budget of the Yogi Adityanath government in Uttar Pradesh is likely to hit the mark of Rs 5.5 trillion, when it is presented in the state legislature next month.

Since the UP assembly polls would be held in the early months of 2022 calendar, the model code of conduct would already be in force during the time the incumbent state government normally tables its annual budgetary proposals.

The estimated size of the UP Annual Budget 2021-22 at Rs 5.5 trillion would be nearly 7.5 per cent higher than the previous Annual Budget 2020-21 at Rs 5.12 trillion tabled by the Yogi government in the legislature on February 7, 2020.

In the backdrop of the ongoing farm stir, the Adityanath government is expected to provide generous allocations to the agricultural and allied sectors in run up to the state elections to keep the rural electorate in good humour.

Besides, the pandemic is expected to cast its shadow on the budget in the form of higher budgetary allocations towards social welfare and incentive schemes, such as pension and scholarship schemes, to boost the socioeconomic firmament of the state in the next financial year.

At the same time, the government could soften its revenue targets to accommodate the industrial and services sectors, which are still facing the pandemic challenges in the form of slowdown in demand due to adverse impact on livelihood, businesses etc.

In UP Annual Budget 2020-21 tabled last year, the Adityanath government had tamed fiscal deficit at 2.97 per cent, managing it below mandated 3% of the Gross State Domestic Product (GSDP) under the Fiscal Responsibility and Budget Management (FRBM) Act. The public debt was projected at a manageable 28.8 per cent of the GSDP.