UP budget aims to create fusion between rural economy, urban infra: SBI research

The Rs 4.80-lakh crore budget for 2019-20 by Uttar Pradesh aims to create a "generous" fusion between promoting rural economy and developing urban infrastructure, said a research report by State Bank of India.

After presenting a Budget of Rs 4.28 lakh crore for the current fiscal, the Uttar Pradesh government increased it further to Rs 4.80 lakh crore for 2019-20 (Budget Estimate), a 6.7 per cent increase over Revised Estimate.

In 2019-20, SBI's report 'Ecowrap' said capital expenditure is budgeted to decline 0.9 per cent over 2018-19 RE (possibly on a higher base), while revenue expenditure is pegged to jump 9.4 per cent.

The state's fiscal deficit has been pegged at Rs 46,911 crore in the next fiscal or 2.97 per cent of the state's GDP, while the total debt-to-GSDP is projected to reach 30 per cent by 2019-20.

Uttar Pradesh will not be eligible for additional borrowing, the report said, and added that the projected GST collection for the current fiscal by the state government is optimistic, even as 2019-20 numbers look reasonable.

"The budget aims to create a generous fusion between rural livelihood and cattle economy, women welfare (launching of new schemes for girls), development of tourist destinations, modernisation and training of police force and connecting major towns by air and expressways," said Ecowrap.

The allocation towards rural development has been substantial, it added.

The state government has also allotted Rs 3,194 crore for construction of expressways and Rs 13,135 crore for laying of roads, which should enable the state's highways and roads to stand in league with other states with better road connectivity.

The focus on metro rail projects aims to solve the connectivity issues within the cities and solve traffic woes in high-density cities, the report said.

"Overall, the budget aims at clicking with the masses for its focus on social welfare scheme announcements, cow welfare, religious tourism, infrastructure development and improvement in law and order," it said.

The report further said the focus on 'Housing for All' gets reflected in the provision of Rs 6,240 crore made towards PM Awas Yojana (Gramin). This is in addition to allocation made towards the National Rural Employment Generation Scheme and the National Rural Drinking Water Programme.

An amount of Rs 500 crore for cow welfare was earmarked in the budget. A significant proportion has also been allocated for maintenance and construction of gaushalas in rural areas.

This would help UP farmers who have been up in arms over a massive stray cattle problem, the report added.