The debt burden on the state government is mounting and the total debt on it from different sources is likely to be over Rs 5.16 lakh crore by the end of next fiscal 2020-21. The budget size of 2020-21 at Rs 5.12 lakh crore is a little less than the debt burden. The total debt of the state, however, came down from 29.6 percent of State Gross Domestic Product (SGDP) in 2017-18 and is estimated to be 28.8 per cent in 2020-21.
With a debt burden of over Rs 5.16 lakh crore, every resident of UP has a debt of Rs 22,442 on their head.
“The debt per person in the state during the 2019-20 fiscal is estimated to be Rs 20,702 as the total debt burden would be little over Rs 4.76 lakh crores,’’ Finance Minister Suresh Kumar Khanna said while tabling the budget for 2020-21 in the Assembly on Tuesday.
The total debt burden does not include borrowings from banks and financial institutions by PSUs like UP Power Corporation, UP Housing and Development Board and Urban Development authorities. The state government is the guarantor against the borrowings by the PSUs.
Chief Minister Yogi Adityanath, in his post-budget press, said that the government has strictly adhered to financial discipline and norms under FRBM (Financial Responsibility and Budget Management Act ) and kept fiscal deficit under 3 per cent of SGDP.
In 2018-19, the debt per person was around Rs 19,239 with a total loan of Rs 4.42 lakh crore and was around Rs 18,476 in 2017-18, when the total debt on the state was Rs 4,064 lakh crore.
Thus, after BJP took over in 2017 and with infrastructure development being focused within a year, each citizen’s debt rose by Rs 1,676.
With a population touching 230 million, the state’s debt burden was hovering around 28 per cent to 30 per cent of the State Gross Domestic Product (GSDP).
Of the total fresh borrowings by the state government during 2020-21, the highest would be market borrowing at Rs 32,346 crore, 18.1per cent of the total loans. The UP government was also expecting loan of Rs 11,815 crore from the Centre, Rs 19,368 crore from financial institutions and Rs 42,277 crore from power bonds.
As per budget statistics, total receipts of the state are estimated at Rs 5,0055 lakh crore, of which 33 per cent would come from state taxes, 30.4 per cent from state share in Central taxes and 14.4 per cent from Central assistance. It will also collect 13.1 per cent of revenue from public loans.
With a total expenditure of Rs 5.12 lakh crore, the highest 37.1 per cent will be spent for payment of wages, pension and allowances to government employees and aided educational institutions and pension. The state will also spend a little over 16 per cent for repayment of loan, while 16.1 per cent will be spent on capital expenditure. The government will also pay 3.3 per cent of its expenditure on subsidy.