How Yogi govt has rewired the financial management of UP

AT THE RECENTLY inaugurated Ganga Expressway in Uttar Pradesh — India’s longest at nearly 600 km — what drew applause was not only just its engineering scale or the ₹36,000 crore invested in construction, but the fact that it was financed without bank loans.

- SHEHZAD POONAWALLA & VIJETA RATTANI

In a state once identified with deficits, ‘goonda tax’ and fiscal paralysis, the ability to fund such a mega project independently signals a decisive shift from fiscal vulnerability to fiscal maturity.

Revenue deficit to revenue surplus

For the first time in recent history, Uttar Pradesh recorded a revenue surplus of ₹37,000 crore in FY23, with projections of ₹80,000 crore for FY26. The state’s GSDP has doubled from ₹13 lakh crore in FY17 to more than ₹30 lakh crore in FY25, contributing 9% to India’s economy.

This transformation is the outcome of sustained fiscal engineering under Chief Minister Yogi Adityanath. The fiscal deficit has been contained at 2.97% of GSDP, within FRBM limits, and crucially, achieved without imposing a single new tax in nine years. The leadership recognises that efficient financial management and fiscal discipline are prerequisites for the ambition of becoming a $1-trillion economy.