In a remarkable achievement for the country’s largest state, Uttar Pradesh has emerged as the national leader in capital expenditure and fiscal discipline, according to the State Finance Accounts 2022-2023, released by the Comptroller and Auditor General of India (CAG). Under the dynamic leadership of Chief Minister Mr. Yogi Adityanath, the state achieved an unprecedented capital expenditure of Rs. 1,03,237 crore in the financial year 2022–23 — the highest among all 28 Indian states.
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This expenditure amounts to 210.68% of the state’s net public debt receipts, highlighting a textbook model of development-focused spending, where borrowings are being utilized exclusively for infrastructure creation and capital projects. Experts are calling it an “ideal fiscal model” for other states to follow.
Revenue Surplus Shows Efficient Governance and Prudent Management
Unlike several Indian states that face consistent revenue deficits, Uttar Pradesh is in a state of revenue surplus, meaning its revenue receipts exceeded revenue expenditure. Notably, the state’s own revenue (tax and non-tax) contributed 45% of total revenue receipts — a healthy figure despite being lower than industrial powerhouses like Maharashtra and Gujarat.
This fiscal achievement showcases Mr. Adityanath’s governance model, which emphasizes balanced revenue generation, controlled expenditure, and sustainable borrowing.
UP Ranks Highest in Capital Investment Among Key States
With 9.39% of total expenditure allocated to capital investment, Uttar Pradesh has surpassed economic giants like:
- Maharashtra (3.81%)
- Gujarat (3.64%)
- Bihar (1.65%)
This high share of development-focused expenditure demonstrates the government’s priority towards long-term growth through physical infrastructure, urban development, and capacity building.
Smart Expenditure Management: Lower Outlay on Salaries, Pensions, and Interest
Uttar Pradesh’s fiscal prudence is further evident in its committed expenditure, which stood at 42.57% of total revenue expenditure — much lower than Haryana (55.27%) and Tamil Nadu (50.97%). Key indicators include:
- Salaries: Only 12.43% of total expenditure (vs. over 20% in 16 states)
- Pensions: Just 12.15%, below states like Himachal Pradesh
- Interest Payments: 8.90%, with 10 states spending over 10%
- Subsidies: Minimal at 4.40%, significantly lower than Punjab’s 17%
This approach ensures that a larger portion of the budget is available for developmental and capital projects.
Infrastructure and Grants Spending Reflect Growth-Oriented Governance
Uttar Pradesh allocated 11.89% of its total expenditure to major works, a direct reflection of its infrastructure-driven development model. Spending on grants-in-aid (general and salaries) was 22.85%, which is relatively conservative compared to states like Maharashtra, Andhra Pradesh, and Telangana.
The state also kept capital grants-in-aid at a modest 2.27%, whereas it exceeded 5% in northeastern states like Assam, Jharkhand, and Tripura.
FRBM Compliance and Low Liabilities Showcase Fiscal Responsibility
Uttar Pradesh continues to adhere strictly to the Fiscal Responsibility and Budget Management (FRBM) Act. In FY 2022–23:
- Total liabilities stood at 29.32% of GSDP
- State guarantees remained low at 7.56%
This is a strong indicator of long-term financial sustainability, risk management, and responsible governance.
A National Financial Benchmark Under CM Mr. Yogi Adityanath’s Leadership
With record-breaking capital spending, revenue surplus, controlled committed expenditure, and compliance with fiscal norms, Uttar Pradesh has earned its position as India’s Financial Role Model State. The state’s trajectory under Mr. Yogi Adityanath offers a blueprint for others aiming to combine development with discipline.
