No new taxes have come as a big relief to the middle class reeling under pressure
The UP Chief Minister Akhilesh Yadav presented his second budget – full of hope and optimism, and laid the foundations of future growth that UP aspires for under the leadership of its youngest-ever CM.
No new taxes have been levied in the state budget giving a much-deserved respite to the middle class that has otherwise been reeling under the pressure of rising energy and food prices.
The budget has managed to limit the fiscal deficit and to notionally bring it down to 2.94 percent - well within the responsible limit of 3 percent. It is targeted to go down further. This increase in the budget size of 10.5 percent to Rs 2,21,201.19 crore has been made possible without increasing the incidence of taxation through targeted efficiencies and is expected to be achieved through growth of 20 percent in the collection of trade tax, excise, vehicle tax, and 17 percent in in stamp duty.
The budget is focused on the key factors of mahilayein, gareeb, nujavan, kisan and Musalman. The CM in his budget speech stressed on the importance of overall development of UP and the need to transform the state into ‘uttam pradesh’. He proposes to achieve it by growing at a rate of 8.5 percent .
The budget extended the educational incentives offered in the first edition to women. The state government has decided to provide free education upto graduation for women. This addresses the urgent need to educate and empower women for societal transformation. For education, many new colleges, medical colleges, engineering colleges and agricultural universities have been announced. Forty-one districts will get new Model Rajkiya Sahsiksha Mahavidyalayas (degree colleges). Siddhartanagar, and Allahabad, the yesteryear’s ‘Oxford of the East’ get a new university each. An IIIT is planned in PPP mode and the Gorakhpur Engineering College will be strengthened on the lines of IIT Roorkee. A total of 21 new ITI’s are also proposed. New centres of excellence will come up in established universities. A new Sports University will come up in Aligarh.The total outlay for education is about Rs.32,886 crore, which is almost one-sixth of the total budget outlay.
In India, statistical data establishes significant complementarity between public and private investment, also witnessed in other economies like US, UK, Japan for example. Thus capital investment by the government must be emphasized. The CM has laid great emphasis on capital expenditure by making a budgetary allocation of Rs 53,308 crore. This represents a 21.5 percent increase over the previous year and is the highest ever such jump in UP. Similarly investment earmarked for infrastructure is proposed to shoot up by 25 percent. This trend is best represented in the fact that Plan budget is proposed to grow at 19 percent vis-à-vis non Plan budget growth capped at 7.1 percent.
A significant portion of this expenditure is allocated to 219 newly-launched schemes, besides increasing investments in critical infrastructure like security, water, roads and bridges. Money has also been allocated for proposed four-lane connectivity of all district headquarters to the capital, Lucknow, while strengthening the within village road network. Many PPP infrastructure projects are purported to kick start investment revival through its forward and backward linkages with other industry sectors.
An important highlight of this budget has been the green signal to the Lucknow Metro Project – an Urban Rapid Mass Transportation System – that has the people of Lucknow and the state very excited. It is proposed to be funded via a series of innovative models like increased FSI and FAR charges on land sold in its vicinity, commercialization of land resource, identifying land banks and generating revenue to be kept aside for the metro project. Other support will also be sought as necessary. A SPV will be floated for the project.
Infrastructure seemed to be the flavour of the day. The budget, apart from Metro, also laid out schemes for integrated village development (Lohiya Grams), housing for the poor, four 4-lane state highway projects, six 4-lane state highways, construction of 259 new bridges, a northern peripheral road in Ghaziabad, creation of infrastructure in panchayat areas and development of new airports. Another ambitious infrastructure project connecting Lucknow to Agra with a green field eight-way expressway was also announced. This would connect with the Agra-Noida Yamuna expressway, thus bringing Lucknow and Delhi closer.
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The UP Chief Minister Akhilesh Yadav presented his second budget – full of hope and optimism, and laid the foundations of future growth that UP aspires for under the leadership of its youngest-ever CM.
No new taxes have been levied in the state budget giving a much-deserved respite to the middle class that has otherwise been reeling under the pressure of rising energy and food prices.
The budget has managed to limit the fiscal deficit and to notionally bring it down to 2.94 percent - well within the responsible limit of 3 percent. It is targeted to go down further. This increase in the budget size of 10.5 percent to Rs 2,21,201.19 crore has been made possible without increasing the incidence of taxation through targeted efficiencies and is expected to be achieved through growth of 20 percent in the collection of trade tax, excise, vehicle tax, and 17 percent in in stamp duty.
The budget is focused on the key factors of mahilayein, gareeb, nujavan, kisan and Musalman. The CM in his budget speech stressed on the importance of overall development of UP and the need to transform the state into ‘uttam pradesh’. He proposes to achieve it by growing at a rate of 8.5 percent .
The budget extended the educational incentives offered in the first edition to women. The state government has decided to provide free education upto graduation for women. This addresses the urgent need to educate and empower women for societal transformation. For education, many new colleges, medical colleges, engineering colleges and agricultural universities have been announced. Forty-one districts will get new Model Rajkiya Sahsiksha Mahavidyalayas (degree colleges). Siddhartanagar, and Allahabad, the yesteryear’s ‘Oxford of the East’ get a new university each. An IIIT is planned in PPP mode and the Gorakhpur Engineering College will be strengthened on the lines of IIT Roorkee. A total of 21 new ITI’s are also proposed. New centres of excellence will come up in established universities. A new Sports University will come up in Aligarh.The total outlay for education is about Rs.32,886 crore, which is almost one-sixth of the total budget outlay.
In India, statistical data establishes significant complementarity between public and private investment, also witnessed in other economies like US, UK, Japan for example. Thus capital investment by the government must be emphasized. The CM has laid great emphasis on capital expenditure by making a budgetary allocation of Rs 53,308 crore. This represents a 21.5 percent increase over the previous year and is the highest ever such jump in UP. Similarly investment earmarked for infrastructure is proposed to shoot up by 25 percent. This trend is best represented in the fact that Plan budget is proposed to grow at 19 percent vis-à-vis non Plan budget growth capped at 7.1 percent.
A significant portion of this expenditure is allocated to 219 newly-launched schemes, besides increasing investments in critical infrastructure like security, water, roads and bridges. Money has also been allocated for proposed four-lane connectivity of all district headquarters to the capital, Lucknow, while strengthening the within village road network. Many PPP infrastructure projects are purported to kick start investment revival through its forward and backward linkages with other industry sectors.
An important highlight of this budget has been the green signal to the Lucknow Metro Project – an Urban Rapid Mass Transportation System – that has the people of Lucknow and the state very excited. It is proposed to be funded via a series of innovative models like increased FSI and FAR charges on land sold in its vicinity, commercialization of land resource, identifying land banks and generating revenue to be kept aside for the metro project. Other support will also be sought as necessary. A SPV will be floated for the project.
Infrastructure seemed to be the flavour of the day. The budget, apart from Metro, also laid out schemes for integrated village development (Lohiya Grams), housing for the poor, four 4-lane state highway projects, six 4-lane state highways, construction of 259 new bridges, a northern peripheral road in Ghaziabad, creation of infrastructure in panchayat areas and development of new airports. Another ambitious infrastructure project connecting Lucknow to Agra with a green field eight-way expressway was also announced. This would connect with the Agra-Noida Yamuna expressway, thus bringing Lucknow and Delhi closer.
Read more.....
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