Plan funding gap to hit UP’s growth target

LUCKNOW: Uttar Pradesh has failed to provide funds for its annual plan for 2013-2014 as promised, notwithstanding the government’s tall claims of taking the state on the path of development.

With the considerable shortfall in funds for the state’s annual plan during the two-year tenure (2012-2013 and 2013-2014) of the Samajwadi Party government - the state is unlikely to achieve the growth rate targets for the 12th Five Year Plan period.

“T he state gover nment incurred expenditure of nearly ` 59,000 crore against the annual plan outlay of about ` 69,200 crore for 2013-2014. This includes central funds of about ` 7000 crore. So, the state funding for the annual plan comes to nearly ` 52,000 crore,” said a senior officer.

Though the final statistical data for the expenditure in 20132014 is yet to be officially made available, the initial estimates indicate a shortfall of nearly ` 10,000 crore. The state government’s performance vis-à-vis the expenditure incurred in 2012-2013 does not indicate much improvement in the overall financial situation. “The state government was able to provide Rs 45,760 crore against the annual plan outlay of Rs 57,800 crore in 2012-2013. This time, the state government expected considerable improvement in the annual plan funding. But there has not been much improvement,” said the officer.

The large gap in the annual plan funding is likely to have an adverse impact on the targets set for the 12th Five Year Plan for UP. The state government had set a target of 10% growth during the Plan period. “Such an ambitious growth target will be hard to achieve,” said another officer. However, the state government has been able to enforce fiscal discipline and the deficit is likely to remain less than 3% of the GSDP. The state government has remained in a revenue surplus in 2013-2014 too though final figures are yet not available,” he said.