Rs 618 crore deficit in UP budget

Mulayam plans to rein in borrowing, expenditure

Uttar Pradesh Chief Minister Mulayam Singh Yadav presented a Rs 618.20 crore deficit budget for 2004-2005 that strives to rein in borrowing and expenditure. But he did not announce any new taxes.

Yadav proposes to reduce the fiscal deficit from 5.9 per cent of the state's GDP in the revised estimates for 2003-04 to 4.4 per cent in the Budget estimates for 2004-05.

He also plans to squeeze borrowing to Rs 23,345.81 crore in 2004-05 from Rs 30,200.81 crore in 2003-04.

This is against increased revenue receipts, estimated at Rs 37,258.62 crore for 2004-05, up from Rs 32,860.08 crore in the revised estimates for 2003-04.

The Budget estimates receipts of Rs 61,264 crore and expenditure of Rs 63,983 crore. After adjusting Rs 2,718 crore from the Consolidated Fund and Rs 3,175 from the public account, and taking into account the opening balance of Rs 1,074 crore, the Budget estimates a deficit of Rs 618.20 crore.

Capital receipts are estimated at Rs 24,006.30 crore against Rs 21,197.92 crore capital expenditure in 2004-05. Revenue receipts in 2004-05 are pegged at Rs 37,258 crore against a revenue expenditure of Rs 42,785.71 crore.

Yadav, who is also the finance minister, said his government's development strategy was focused on spending public money on education, health and infrastructure.

Besides, his priority is to create an environment in the state that encourages private investment. "We feel that more private investment in agriculture, industry and services will lead to creation of more employment," he said.

In line with the rest of the country, the state's growth target for the 10th Five Year Plan has been pegged at 8 per cent, although in 2002-03 it grew only 0.3 per cent. He said around 71 per cent of the annual Plan was dedicated to schemes for rural areas.

The state development council had been asked to give its recommendations to further the economic and industrial development, he said adding the government had launched several schemes for farmers and claimed that about Rs 1,100 crore had already been paid as cane arrears.

He said the government planned to electrify 40,000 villages by 2009 under the new energy policy, in which 6,000 villages would be electrified in the first phase.

The chief minister said the government had decided to constitute up arabic-persian madarsa board keeping in view the Muslim population in the state.

An integrated development scheme would be implemented in 6,000 villages selected by the state legislature.

Yadav said an annual growth rate of 8 per cent had been targeted in the 10th annual plan.

A sum of rs 250 crore had been provisioned for modernising the police administration, he added.

The proposals

• The government proposes to reduce the fiscal deficit from 5.9 per cent of the state's GDP in the revised estimates for 2003-04 to 4.4 per cent in the Budget estimates for 2004-05
• Yadav plans to squeeze borrowing to Rs 23,345.81 crore in 2004-05 from Rs 30,200.81crore in 2003-04
• The budget estimates receipts of Rs 61,264 crore and expenditure of Rs 63,983 crore