With eye on 2019 polls, UP govt may seek Rs 400 bn in supplementary budget

The Uttar Pradesh government is likely to seek almost Rs 400 billion in additional budgetary grants during the forthcoming monsoon session of the state legislature.   

The Yogi Adityanath Cabinet on Tuesday passed the supplementary budget proposals to be tabled in the State Assembly on August 27.  

In the current election year, the additional grants would be used for flagship development and infrastructure projects, apart from welfare schemes. In the run-up to the crucial 2019 Lok Sabha polls, the ruling Bharatiya Janata Party (BJP) government needs liberal doses of funds for various flagship projects, including the Purvanchal Expressway, Bundelkhand Expressway, and Bundelkhand Defence Corridor, etc. The upcoming 2019 Kumbh Mela at Prayag, Allahabad, could also be provided with more funds.    

The supplementary budget is tabled to get legislative approval for meeting additional expenses during the course of the financial year. 

The UP Annual Budget 2018-19, tabled in the Assembly on February 16, 2018, was to the tune of over Rs 4.28 trillion. Therefore, supplementary budget grants would stand at over 10 per cent of the Annual Budget size and indicate the intention of the Adityanath government to gear up for the next election with populism.

Meanwhile, the Cabinet also cleared the proposal for giving sops to 10 industrial units being established at different places in UP. The sops would be given in the computation of the goods and services tax (GST), stamp duty, and electricity duty, etc. These units are being set up at a total investment of more than Rs 36.30 billion. They will create 3,500 jobs. 

These comprise the ACC Cement plant at an investment of Rs 5.25 billion in Amethi, the parliamentary constituency of Congress President Rahul Gandhi; Gallant Ispat's integrated steel and power plant in Gorakhpur at an investment of Rs 5.09 billion; Ambashakti Industries' automatic steel rolling plant in Bulandshahr at an investment of Rs 1.83 billion.  

The Kanodia Group will set up four units in Farrukhabad and Pratapgarh district by investing about Rs 3.65 billion at the two places each. Sachi Agencies will set up two units in Rae Bareli and Allahabad by investing Rs 2.76 billion each. The Paswara Group will set up their unit in Meerut by investing Rs 4 billion.  

Meanwhile, the Cabinet gave its nod to the manufacture of ethanol from B-grade molasses produced by sugar mills during cane crushing season. UP excise principal secretary Kalpana Awasthi said that earlier, ethanol could be manufactured from only C-grade molasses in the state. However, since the Centre has increased blending of ethanol in petrol from five per cent to 10 per cent and it is likely to be further hiked to 20 per cent, the decision was taken to make available adequate quantity of ethanol for blending.  

The Cabinet also cleared the new til (sesame seed) export policy, effective for the next 5 years, providing sops to exporters and waiving mandi tax and development cess.