Uttar Pradesh govt steps up budget preparations

Proposals being collected from departments for incorporating them in the budget

‘THE STATE GOVT IS LIKELY TO PRESENT LARGER BUDGET WHICH MAY HAVE A SIZE OF ₹6 LAKH CRORE OR MORE

LUCKNOW: The Uttar Pradesh government has stepped up preparations for the annual budget for 2022-23 to be presented before the state legislature during the budget session.

“The state government is likely to convene the budget session next month to present the annual budget for 2022-23. It is collecting proposals from different departments for the purpose of incorporating them in the budget,” said a senior BJP leader on condition of anonymity.

Chief minister Yogi Adityanath recently viewed presentations of all the major departments. Besides allocating funds to implement the chief minister’s directives given at these presentations, the state government will also earmark funds to implement many promises that have been made in the BJP’s Sankalp Patra for the recently concluded 2022 Uttar Pradesh assembly polls.

The state government had on December 16, 2021 presented an interim budget for 2022-23 in the state legislature, proposing an expenditure of Rs 5,45,370.69 crore and estimated receipts of Rs 5,44.836.56 crore, leaving a deficit of Rs 534.13 crore. It got a vote on account approved only for the first four months of the financial year 2022-23. So, it would have to get the annual budget passed by the state legislature before July 31.

The state finance department has asked the departments to send proposals by April 20. It has also asked them to send necessary material for preparing the budget speech of minister for finance Suresh Khanna by April 25.

Khanna was not available for comment. Those aware of developments said the state government is likely to present a larger budget which may have a size of Rs 6 lakh crore or more.

It had presented an annual budget of Rs 5.50 lakh crore for 2021-22.

It also presented two supplementary budgets for Rs 7301.52 crore and Rs 8479.53 crore in 2021-22 and an increase in the size of the state budget for 2022-23 is obvious.

Although the state government’s revenue collections have gone up consistently, the restrictions imposed to fight Covid-19 have had an adverse impact on the state’s economy. Mobilising additional resources for a larger budget would pose a challenge.

“The state budget size went up to Rs 5.66 lakh crore, including supplementary budgets. The budget for 2022-2023 is likely to be Rs 6 lakh crore. The state government’s actual expenditure has been less than the estimates of the budget in previous years. One of the reasons for this may be lack of adequate resources to fund the budgeted expenditure. Therefore, increasing the size of budget should be clubbed with efforts to mobilise additional resources. It would be better if the state government comes out with realistic estimates of receipts, ” said Professor Yashvir Tyagi, former head of department, economics, Lucknow University.