In an effort to achieve a $1 trillion economy by FY28, Uttar Pradesh is adopting twin strategy – using technology extensively i to boost revenue and increasing capital expenditure. In an interview, State’s Finance Minister Suresh Khanna said that with higher capital expenditure, physical infrastructure has improved a lot and effort is to further accelerate the pace of improvement.
Excerpts:
How State is performing in terms of its own tax revenue (OTR)? What measures can be taken to further boost it ?
Own Tax Revenue of Uttar Pradesh is increasing each year and crossed over ₹2.12 lakh crore in 2024-25. Contribution of OTR in Revenue Receipts is around 40 per cent. Now it is 7 per cent of UP’s GSDP which a healthy sign. We have improved our OTR collection by minimising revenue leakages and bringing such policies which facilitate ease of doing business, thus improving OTR collection.
Post Kumbh mela, State’s GST collection appears to be plateaued. What are the measures to further boost collection?
We are trying to plug leakages by using data analytics and Al Further, we are strengthening our enforcement.
What is current status of capital expenditure by the State government? What are the measures being taken to improve the status?
Uttar Pradesh is the only State in the country whose actual Capital Outlay has crossed ₹1 lakh crore. As per AG figures the actual Capital Outlay for 2024-25 was ₹1,14,001 crore, which was 4.56 per cent of GSDP. This has resulted in the maximum number of expressways and airports including Jewar Airport (Greater Noida, near Delhi), which is the largest airport in Asia is going to be Inaugurated in January, 2026. These expressways have provided better connectivity to various important tourist places of the State. We are developing airstrips and Heliports to improve regional connectivity. We are continuously focussing to improve our capital expenditure.
The 16th Finance Commission has submitted its report and its recommendation is expected to be made public in the Union Budget. States are looking for higher share than of the 15th Commission. What are your expectations?
As we have maintained fiscal discipline over the years, this should be taken into consideration while devising the formula. In X XII and XIV Finance Commission recommendations UP’s share in Central Tax devolution was more than 19 per cent, but in XV FC recommendations, it was reduced to 17.94 per cent. Therefore, we expect that our share should be increased to 20 per cent.
Centre has constituted 8th Pay Commission and its recommendations are expected to be effective from January 01, 2026. Since States follow the recommendations of Centre’s pay commission, what would be the impact on your finances?
Let the recommendations come. We will study and assess the Impact on our resources, only then we will decide sur strategy.
What is the current position of the State’s debt? How do you plan to lower it?
As per latest AG account in 2024-25, the total debt of Uttar Pradesh was ₹815526.02 crore, which was 29 per cent of GSDP and the interest payment was 9 per cent of Revenue Receipts. Our debt is sustainable and the growth rate of Debt Stock is lower than the growth rate of GSDP. We are availing 50-year loans under SASCI (Special Assistance to States for Capital Investment) Scheme of GOI which is helping to lower our debt burden.
The State aims to achieve $1 trillion GSDP mark, what is the roadmap from here?
The target has been set to take economy of Uttar Pradesh to $1 trillion (approximately ₹82 lakh crore) by 2027-28. At preset the GSOP of UP is around ₹31 Lakh crore. To achieve the target of $ 1 trillion, the economy has been divided in core sectors such as agriculture, tourism, IT and Electronics manufacturing beside others. Further, the State has been divided into 4 regions viz. Western, Bundelkhand, Central and Eastern and a strategy has been planned for the development of all these regions. To mobilise resources, tax collecting departments are making suitable policies.
