UP Budget 2021: Allocation For Infra, Health As Percentage Of Total Expenditure Higher Than Average Allocation By States, Says Report

UP Budget 2021: Allocation For Infra, Health As Percentage Of Total Expenditure Higher Than Average Allocation By States, Says ReportFinance Minister Suresh Kumar Khanna and Chief Minister Yogi Adityanath. 
Snapshot
  • UP has allocated 8.2 per cent of its total expenditure for roads and bridges.

In the 2021 budget, Uttar Pradesh’s allocation for the infrastructure and health sectors as a percentage of total expenditure is higher than the average allocation for these sectors by states, an analysis by PRS Legislative Research says.

The Yogi Adityanath government, doubling down on infrastructure ahead of the 2022 assembly election in the state, has allocated 8.2 per cent of its total expenditure for roads and bridges, which is almost double the average allocation by states at 4.3 per cent (2020-21 budget estimate or BE).

In 2019-20 and 2020-21, the state spent 7.3 per cent and 6.9 per cent (revised estimate or RE) of the expenditure on roads and bridges, data shows.

Spending on roads and bridges. (PRS Legislative Research)
Spending on roads and bridges. (PRS Legislative Research)

The state government has allocated Rs 7,200 crore for the 594-km long Ganga Expressway, land acquisition for which has already begun.

Rs 3,450 crore have been allocated for the state’s three under construction e-ways — the 296-km long Bundelkhand Expressway, the 340-km long Purvanchal Expressway and the 91-km long Gorakhpur Link Expressway.

For the health sector, the government has allocated 6.3 per cent of the total expenditure, which is significantly higher than the average allocation for health by states at 5.5 per cent (2020-21 BE).

In the 2020-2021 budget, the state had allocated 5.5 per cent (5.3 per cent RE 2020-21) of its total expenditure for health, which is marginally higher than the average allocation for health by states at 5.3 per cent (2019-20 BE).

Spending the health. (PRS Legislative Research)
Spending the health. (PRS Legislative Research)

Similarly, Uttar Pradesh government’s allocation for the health sector in the 2019-20 budget, at 5.4 per cent of its total expenditure, was higher than the average allocation (5.2 per cent) by other states in 2018-19.

At 5.7 per cent of its total expenditure, Uttar Pradesh government’s allocation for police in the 2021-22 budget is significantly higher than the average expenditure on police by states at 4.3 per cent (2020-21 BE).

Spending on police (PRS Legislative Research)
Spending on police (PRS Legislative Research)

While the state government has allocated Rs 20,033 crore to district police in the 2021-22 budget, Rs 3,361 crore has been set aside for special police.

In the 2020-21 budget, the state government had allocated 5.5 per cent (5.3 per cent RE) of its total expenditure for police in 2020-21, which is significantly higher than the average allocation for police by states at 4.1 per cent (2020-21 BE).

The state government has allocated Rs 5,395 crore for National Rural Health Mission and Rs 1,300 crore for Ayushman Bharat. It has also provided Rs 5,085 crore for the construction of medical colleges in 39 districts.

The state government has projected a revenue surplus of Rs 23,210 crore for 2021-22, which is 1.07 per cent of the gross state domestic product (GSDP).

“In 2020-21, as per the revised figures, revenue deficit is estimated at Rs 13,161 crore (0.68 per cent of GSDP) though the budget for 2020-21 had estimated a revenue surplus of Rs 27,451 crore (1.53 per cent of GSDP),” the report adds.

The fiscal deficit is estimated to be around 4.17 per cent of the GSDP.

The current government's last budget, which is the largest in the state's history, was passed by the Vidhan Sabha earlier today.

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