UP bets on growth in state budget 2023-24

State Finance Minister Suresh Khanna presents budget 2023-24

The Uttar Pradesh (UP) Finance minister Suresh Khanna presented the annual Budget for the state on February 22. This is the second budget for ‘Yogi 2.0,’ a phrase used to informally address the second term of chief minister Yogi Adityanath, under whose leadership the ruling BJP was re-elected in the state in March last year.

The minister said that there has been a 16.8% increase in state GDP in the year 2022-23. The GSDP growth has been estimated at 19% for 2023-24.

For 2022-23, the Gross State Domestic Product (GSDP) of Uttar Pradesh was forecast to be Rs 20,48,234 crore (17.1% higher than the revised estimate of GSDP for 2021-22 – Rs 17,49,469 crore).

“The state’s unemployment rate before 2017 was 14.4% which has now reduced to about 4.2%, which is a huge achievement,” said the minister.

Following the Uttar Pradesh Global Investors Summit which was held between February 10 and 12, the state signed over 19,000 MOUs worth Rs 33.50 lakh crore.

“India is hosting the G20 meetings this year, UP here will be hosting 11 meetings in its four cities including Lucknow, Agra, Varanasi and Greater Noida,” he said during the budget speech.

As per the speech, milk production, sugar production as well as ethanol supply are the highest in UP. UP has given the most number of vaccinations, amounting to over 39.20 crore.

The Indian government via its startup ranking has recognised UP as an 'Inspiring Leader'. Under the Atal Pension Yojana, UP is at number one for getting the most registrations.

“Organised crime has been eradicated from UP in the last few years. The state has only moved towards development. Our focus is on the infrastructure sector, and our goal is to achieve $1 trillion economy,” the Minister said.

Khanna has proposed over Rs 21,159 crore for the construction of roads and bridges, and Rs 6,209 crore for infrastructure maintenance. Rs 12,631 crore have been allocated for various programmes under National Rural Health Mission.

The state budget has also set an investment target of Rs 10 lakh crore along with the creation of 20 thousand jobs in the next 5 years under UP Tourism Policy 2022.

Rs 3,600 crore have been allocated to provide tablets/smartphones to eligible students under Swami Vivekananda Youth Empowerment Scheme. A provision of Rs 1,050 crore has also been proposed under the Chief Minister Kanya Sumangala Yojana for FY 2023-24, a preparatory for households with a girl child. Additionally, Rs 4,032 crore has been allocated for destitute widows.

The 2023 UP budget assumes significance ahead of the Lok Sabha elections, slated for April-May 2024; as the country's most populous state, Uttar Pradesh sends 80 members to the lower house of Parliament – the highest among all states and UTs.

In 2014 and 2019, the BJP won 71 and 62 seats respectively from Uttar Pradesh and crossed the majority mark in Lok Sabha on its own. PM Narendra Modi is seeking a third term during the 2024 elections.