Uttar Pradesh : Study of State Finances
Publication dateJan, 2005
DetailsReport submitted to the Planning Commission
AuthorsD. K. Srivastava, C. Bhujanga Rao, Mukesh Kumar Anand, Pinaki Chakraborty
This study looked at the state finances of the reorganised Uttar Pradesh while drawing appropriate comparisons with the undivided state. Except for the mid-nineties there was deterioration in the fiscal imbalance indicators which led to a high and unsustainable debt for the state. In 2002-03 the debt-GDP ratio was as high as 50 percent of GSDP. The rise in debt resulted from a high level of fiscal deficit, which had reached a peak of 6.3 percent of GSDP in 1999-00. Although in subsequent years there was some improvement, this study suggests a fifteen-fold reform strategy relating to four broad areas of fiscal management covering revenue augmentation, expenditure reforms, fiscal discipline and budget management, and public sector reforms.