Uttar Pradesh has emerged as India’s top-performing state in fiscal discipline, capital investment, and financial management, according to the State Finance Accounts 2022–23 released by the Comptroller and Auditor General of India (CAG).
Under the leadership of Chief Minister Yogi Adityanath, the state achieved a record capital expenditure of Rs 1,03,237 crore in FY 2022–23 — the highest among all states in the country. This expenditure amounts to 210.68 per cent of the state’s net public debt receipts, underscoring that every rupee of borrowing was channelled into development and capital creation projects, a hallmark of prudent fiscal management.
The report highlights that Uttar Pradesh not only maintained strict control over revenue expenditure but also set new benchmarks in investment-led growth, marking a balance between fiscal prudence and developmental ambition.
Uttar Pradesh recorded a revenue surplus, with its revenue receipts surpassing expenditure. The state’s own tax and non-tax revenues contributed 45 per cent of its total receipts — slightly below more industrialised states such as Haryana, Telangana, Maharashtra, and Gujarat, where the figure ranges between 70 per cent and 80 per cent.
However, UP’s commitment to capital creation stands out. The state invested 9.39 per cent of its total expenditure, outperforming Maharashtra (3.81 per cent), Gujarat (3.64 per cent), and Bihar (1.65 per cent). Between 2013–14 and 2022–23, Uttar Pradesh also received the highest central tax devolution in India, further bolstering its developmental momentum.
Disciplined Management of Committed Expenditure
The report notes that Uttar Pradesh’s committed expenditure — which includes salaries, pensions, and interest payments — accounted for 42.57 per cent of its total revenue expenditure, a figure lower than Haryana (55.27 per cent) and Tamil Nadu (50.97 per cent).
Salaries comprised only 12.43 per cent of total expenditure, compared to over 20 per cent in 16 other states.
Pension payments stood at 12.15 per cent, lower than states such as Himachal Pradesh (15 per cent+), while interest payments accounted for 8.90 per cent, below the 10 per cent threshold exceeded by 10 other states.
Subsidies were also kept under control at 4.40 per cent, compared to Punjab’s 17 per cent, showcasing UP’s restrained and responsible fiscal approach.
Focus on Infrastructure and Capital Formation
The CAG report underscores Uttar Pradesh’s strategic focus on infrastructure. The state allocated 11.89 per cent of its total expenditure towards major construction works, signalling an emphasis on growth-enabling capital projects such as roads, bridges, and public infrastructure.
Meanwhile, grants-in-aid (general and salaries) accounted for 22.85 per cent of total spending — lower than in larger states such as Maharashtra, Andhra Pradesh, and Telangana. Grants-in-aid for capital creation stood at 2.27 per cent, compared to over 5 per cent in Assam, Jharkhand, and Tripura, indicating UP’s preference for direct capital investment over grants-based spending.
Adherence to Fiscal Responsibility Norms
The state has fully complied with all provisions of the Fiscal Responsibility and Budget Management (FRBM) Act during FY 2022–23. Uttar Pradesh’s total liabilities stood at 29.32 per cent of its Gross State Domestic Product (GSDP), while total guarantees were contained at 7.56 per cent, reflecting strong fiscal health and stability.
The CAG report reaffirms Uttar Pradesh’s position as a financially resilient and development-driven state, combining fiscal prudence, transparency, and targeted investment to sustain growth momentum.
With its disciplined expenditure patterns, revenue surplus, and focus on infrastructure-led growth, Uttar Pradesh under CM Yogi Adityanath has established itself as a role model for financial governance among Indian states. |
