Uttar Pradesh’s economic transformation: CM Yogi’s vision bears fruit
Lucknow: Uttar Pradesh, under the leadership of Chief Minister Yogi Adityanath, is rapidly progressing towards becoming a $1 trillion economy state, as the government’s efforts begin to yield significant dividends. Whether it’s attracting private investments or championing the Antyodaya resolution to uplift millions from poverty, the Yogi government’s comprehensive strategies are manifesting in every sector, painting a portrait of a resurgent Uttar Pradesh.
Despite the global and domestic economic challenges posed by the COVID-19 pandemic over the past three years, Uttar Pradesh has steadfastly maintained its growth trajectory. The Gross State Domestic Product (GSDP), which stood at Rs 16,45,317 crore in the fiscal year 2020-21, has seen an impressive 20 per cent surge to Rs 19,74,532 crore in 2021-22. Moreover, advanced estimates for 2022-23 forecast the state’s income to reach Rs 21.91 lakh crore.
In a remarkable achievement, the Reserve Bank of India’s August 2023 bulletin reveals that Uttar Pradesh has emerged as the leading state in India, accounting for 16.2 per cent of total funds raised from banks and other financial institutions in 2022-23. This marks a tremendous 15-fold increase from the 1.1 per cent figure recorded in the fiscal year 2013-14. Furthermore, Uttar Pradesh has solidified its position as the second-largest state in terms of the number of income tax return (ITR) filers, with ITR submissions surging from 1.65 lakh in June 2014 to an impressive 11.92 lakh in June 2023.
The Yogi government’s commitment to eradicating poverty and elevating the income levels of the underprivileged through various welfare schemes has yielded commendable results. According to the NITI Aayog’s ‘National Multidimensional Poverty Index: A Progress Review 2023,’ while India has seen 135 million people escape multidimensional poverty between 2015-16 and 2019-21, Uttar Pradesh stands out with the most significant reduction in poverty levels. The report credits the government’s concerted efforts with lifting 3.43 crore people out of multidimensional poverty in the state. States such as Bihar, Madhya Pradesh, Odisha, and Rajasthan follow Uttar Pradesh in this positive trend.
Once tagged as a ‘Bimaru’ state, Uttar Pradesh has now transformed into a revenue surplus state. In 2016-17, the state’s tax revenue stood at approximately Rs 86 thousand crore, and by 2021-22, it had surged to over Rs 01.47 lakh crore, marking an impressive 71 per cent increase. Similarly, the sales tax/VAT for the fiscal year 2016-17, which amounted to around Rs 51,883 crore, has now exceeded Rs 125 crore in 2022-23. Notably, Uttar Pradesh’s VAT rates on petrol, diesel, and ATF are lower than many other states, and these rates have remained unchanged since May 2022.
Under the adept financial management of the Yogi government, the fiscal deficit has been maintained at 3.96 per cent as opposed to the 4.0 per cent stipulated by the Fiscal Responsibility and Budget Management (FRBM) Act for the year 2022-23. These statistics underscore a substantial reduction in interest payments, with the budget allocation dropping from 8 per cent to 6.5 per cent for interest repayment in 2022-23.
During a recent discussion at Jawaharlal Nehru University (JNU) in New Delhi, experts lauded the Yogi government for ushering in new economic paradigms in Uttar Pradesh.
