UP: Average debt on residents stands at about Rs 37,500 as state liabilities near Rs 9 lakh crore

Lucknow: The average debt burden of residents of Uttar Pradesh stands at about Rs 37,500 as the state government’s liabilities continue to mount. According to official estimates, the state’s total debt is projected to touch almost Rs 9 lakh crore in the current financial year, raising concerns about fiscal stability and the pressure it could place on future generations.

Figures compiled by the state Finance department show a steady surge in liabilities over the past five years. In 2019, Uttar Pradesh’s debt stood at about Rs 6 lakh crore. By 2024–25, the figure is expected to reach Rs 8.98 lakh crore, marking a near 50 percent increase in half a decade. Officials say borrowing is necessary to fund infrastructure and welfare projects, but critics argue that ordinary people are left carrying the burden without visible improvements in their daily lives.

Economists say the rise is not unexpected for a state with a population of over

25 crore, but caution that debt servicing will increasingly consume a larger share of the budget. “If the borrowing goes into building expressways, irrigation projects, and power infrastructure, it is manageable because these assets will generate economic returns. But if loans are being used for subsidies and salaries, then it is worrying,” said a Lucknow-based economist.

Officials in the Yogi Adityanath government defend the borrowing pattern, stressing that the debt-to-GSDP ratio is still within the limits prescribed by the Reserve Bank of India. “The government is investing responsibly in projects that will benefit the state in the long run. Roads, airports, electricity, and welfare schemes are all meant to improve both the economy and the quality of life for people,” said a senior finance department official.

On the streets, however, people express scepticism. Ramesh Yadav, a shopkeeper in Lucknow’s Aminabad market, said, “We keep hearing about the state taking loans, but we don’t see

much change around us. Electricity bills are high, jobs are fewer, and health facilities are still weak. If every person has Rs 37,500 debt on his head, what are we getting in return?”

In rural areas, concerns are sharper. Malti Devi, a farmer’s wife in Barabanki, said, “The government says it spends money on villages, but our school has no teacher and the road to our village is broken. If the state is borrowing so much, why is nothing reaching us?”

The opposition has seized on these sentiments.

Samajwadi Party leaders accuse the government of wasting money on image-building exercises while ignoring real issues. Congress leaders too allege that reckless borrowing is pushing the state towards a debt trap. The BJP counters these claims, insisting that investment-led growth will eventually benefit everyone.

Analysts say Uttar Pradesh is not unique, with several states facing similar trends. But with elections two years away, rising liabilities and their impact on citizens could become a key political flashpoint. For now, the average resident continues to bear the silent weight of the state’s mounting debt.