Uttar Pradesh Economic Survey and Current updates must for prelims and mains exams

Uttar Pradesh: Economy current affairs

Uttar Pradesh grants Revenue Status to 3 forest villages under FRA, 2006

The Uttar Pradesh Government in the first week of July 2018 granted Status of Revenue Village to three villages inhabited by the Tongia Scheduled Tribe in and around forests in Saharanpur district under the Forest Rights Act, 2006 (FRA). These villages are – Kaluwala, Sodhinagar and Bhagwatpur.

President Ram Nath Kovind inaugurates ‘One District one Product’ Summit in UP

The ‘One District One Product’ (ODOP) scheme aims to promote one traditional industry in every district such as lock industry in Aligarh, Banarasi silk-weaving in Varanasi and biscuit-making in Amethi. UP is uniquely famous for product-specific traditional industrial hubs across 75 districts, including Bhadohi (carpet), Lucknow (chikan), Kanpur (leather goods), Agra (leather footwear), Moradabad (brassware) Meerut (sports goods) and Saharanpur (wooden products).

U P Economy : Factual scenario

The Gross State Domestic Product of Uttar Pradesh for 2018-19 (at current prices) is estimated to be Rs 14,88,934 crore. This is 8% higher than the revised estimates for 2017-18.
GSVA at constant prices is estimated to be ` 780937 crore in 2014-15, ` 827345 crore in 2015-16 and ` 881181 crore in 2016-17 showing a growth of 3.5% in 2014-15, 5.9% in 2015-16 and 6.5% in 2016-17.
Total expenditure for 2018-19 is estimated to be Rs 4,28,385 crore, a 16.3% increase over the revised estimates of 2017-18. In 2017-18, there was a decrease of Rs 16,259 crore (4.2%) in the expenditure over the budget estimates.
Total receipts (excluding borrowings) for 2018-19 are estimated to be Rs 3,53,784 crore, an increase of 15.9% as compared to the revised estimates of 2017-18. In 2017-18, total receipts (excluding borrowings) fell short of the budgeted estimate by Rs 14,369 crore.
Revenue surplus for the next financial year is targeted at Rs 27,099 crore, or 1.82% of the Gross State Domestic Product (GSDP). Fiscal deficit is targeted at Rs 44,053 crore (2.96% of GSDP).
The allocations for energy, irrigation, and rural development are estimated to witness the highest increase in allocations over the previous year. Allocations for agriculture are expected to witness a 59% decrease.
The total expenditure in 2018-19 is targeted at Rs 4,28,385 crore. This is 16.3% higher than the revised estimates of 2017-18. This expenditure is proposed to be met through receipts (other than borrowings) of Rs 3,53,784 crore and borrowings of Rs 67,115 crore. Total receipts for 2018-19 (other than borrowings) are expected to be 15.9% higher than the revised estimates of 2017-18.
Capital expenditure for 2018-19 is proposed to be Rs 1,06,864 crore, which is an increase of 30.5% over the revised estimates of 2017-18. This includes expenditure which affects the assets and liabilities of the state, and leads to creation of assets (such as bridges and hospital), and repayment of loans, among others.
Revenue expenditure for 2018-19 is proposed to be Rs 3,21,520 crore, which is an increase of 12.2% over revised estimates of 2017-18. This expenditure includes payment of salaries, maintenance, etc.
In 2018-19, Uttar Pradesh is expected to spend Rs 62,980 crore on servicing its debt (i.e., Rs 30,547 crore on repaying loans, and Rs 32,434 crore on interest payments. This is 20.4% higher than the revised estimates of 2017-18.
63,213 crore allocated for education. Out of this amount Rs 50,142 crore will be spent on primary education, and Rs 9,387 crore on secondary education, and Rs 2,656 crore on higher education.
32,019 crore will be spend on social welfere . out of which Rs 2,560 crore has been allocated for the Vridhavasta evam Kisan Pension’ scheme for 2018-19.
27,575 crore are allocated for energy sector. 62% of this allocation is for revenue expenses (such as payment of interests and subsidy), and the 38% is on capital expenses.
20,157 crore have been allocated to medical and public health.  The state will operationalise 170 national mobile medical units through the PPP model. 100 new ayurvedic hospitals will be established.
19,733 crore budgeted to rural development. Out of this, Rs 2,923 crore will be spent on roads and bridges, and Rs 1,166 crore will be spent on housing.
14,291 crore had been allocated to irrigation sector. The Saryu Nehar Programme has been allocated Rs 1,614 crore. Madhya Ganga Nehar Programme has been allocated Rs 1,701 crore.
13,484 crore are given to urban development sector. Rs 1,650 crore has been allocated for the Smart Cities Mission. Cities selected under the Mission are Lucknow, Kanpur, Agra, Varanasi, Allahabad, Aligarh, Jhansi, Moradabad, Bareli, and Saharanpur.
The total revenue receipts for 2018-19 are estimated to be Rs 3,48,619 crore, an increase of 14.3% over the revised estimates of 2017-18. Of this, Rs 1,51,522 crore (43% of the revenue receipts) will be raised by the state through its own resources, and Rs 1,97,098 crore (57% of the revenue receipts) will be devolved by the centre in the form of grants and the state’s share in taxes.
Non Tax Revenue: Uttar Pradesh has estimated to generate Rs 28,822 crore through non-tax sources in 2018-19. This is an increase of 64.7% over the revised estimates of 2017-18. This is driven by a 187% increase (Rs 8,271 crore) in receipts from the sinking fund (typically maintained to repay debt).
Tax Revenue: Total own tax revenue of Uttar Pradesh is estimated to be Rs 1,22,700 crore in 2018-19. The composition of the state’s tax revenue is shown in Figure 2. The tax to GSDP ratio is targeted at 8.2% in 2018-19, which is higher than the revised estimate of 6.9% in 2017-18. This implies that growth in collection of taxes is expected to be higher than the growth in the economy (8%).
State Goods and Services Tax (GST) is expected to be the largest component of Uttar Pradesh’s own tax revenue in 2018-19. It is expected to generate Rs 49,422 crore (40% of the own tax revenue).
The state is expected to generate Rs 23,000 crore through the state excise duty. This is 19% higher than revised estimates of 2017-18. Further, the state is expected to raise Rs 22,078 crore from the levy of sales tax on items such as alcohol for human consumption and petroleum products.
Tax revenue will also be generated by levying stamp duty on real estate transactions, taxes on vehicles, and land revenue

Policy initiatives: highlights

Healthcare: A 500-bed super speciality hospital, and paramedical and nursing college will be constructed at the Dr. Ram Manohar Lohia Institute of Medical Sciences, Lucknow. Further, the emergency medicine department at the Sanjay Gandhi Postgraduate Institute of Medical Sciences will be expanded, and an additional 200 beds will be added.

The government will launch ‘Ek Janpad, Ek Utpaad’ scheme to promote artisans at the district-level.

The state has implemented the ‘Uttar Pradesh Khanan Neeti-2017’ for the mining sector. The policy seeks to control illegal mining and bring transparency. The government will implement an evolved mining system in the state, with assistance from the central government, for satellite tracking of mining activities.

Solar energy: The state has set a target of generating 10,700 MW of power using solar energy by 2022. The budget allocates Rs 25 crore for setting up grid-connected rooftop solar power plants. Further, Rs 30 crore has been allocated for the Pt. Deen Dayal Upadhyaya Solar Street Light scheme.

Rs 250 crore has been allocated for establishing a start-up fund in the state.

Revenue deficit of state

It is the excess of revenue expenditure over revenue receipts. A revenue deficit implies that the government needs to borrow in order to finance its expenses which do not create capital assets.

The budget estimates a revenue surplus of Rs 27,099 crore (or 1.82% of GSDP) in 2018-19. This implies that revenue receipts are expected to be higher than the revenue expenditure, resulting in a surplus. The estimate indicates that the state is within the target of eliminating revenue deficit, prescribed by the 14th Finance Commission.

Fiscal deficit

It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government, and leads to an increase in total liabilities. In 2018-19, fiscal deficit is estimated to be Rs 44,053 crore, which is 2.96% of the GSDP. The estimate is within the 3% limit prescribed by the 14th Finance Commission. This limit may be relaxed to a maximum of 3.5%, if states are able to contain their debt and interest payments to certain specified levels.

UP govt announces sops for SC/ST, minority entrepreneurs under ODOP scheme

Uttar Pradesh government on Tuesday announced sops for promoting Micro, Small and Medium Enterprises (MSME), especially those owned by the minorities and other weaker sections of society.

The MSMEs will be provided financial incentives under the government’s flagship One District, One Product (ODOP) scheme that aims to foster the traditional industries.

Under the scheme, the state would provide almost 25% subsidy on project cost to new enterprises being set up under ODOP. While, 25% subsidy or Rs 625,000, whichever is lower, would be given to projects of up to Rs 2.5 million, the corresponding figure for projects costing between Rs 2.5 million and Rs 5 million is 20% or Rs 625,000, whichever is higher.

Uttar Pradesh to ensure sugar arrears payment before October 20

Uttar Pradesh will ensure that the entire sugarcane arrears of little less than Rs 100 billion, accruing to the state’s farmers from 2017-18, would be paid before October 20.

Haier Appliances to set up Rs 30.69 bn industrial park in Greater Noida

In one of the largest investments by a Chinese durable major in the country, Haier Appliances India will put in Rs 30.69 billion to set up its second industrial park in Greater Noida. On Friday, a memorandum of understanding was signed by the company and the Uttar Pradesh government.

Free education from KG to PG in Uttar Pradesh, Yogi government’s next plan

Yogi Adityanath’s Uttar Pradesh government may provide free education from Kindergarten to Postgraduate level in the state and an announcement in this regard is expected to be made soon.

Uttar Pradesh government tables supplementary budget of Rs 34,833 crore

The Uttar Pradesh government today tabled the first supplementary budget to the tune of Rs 34,833.24 crore for FY2018-19 in the UP Legislative Assembly, to meet the additional expenditure for the year.

Earlier in February this year, the Yogi Adityanath government had passed a budget of Rs 4.26 lakh crore for the ongoing fiscal year.

Mahesra bridge

Uttar Pradesh Chief Minister Yogi Adityanath today blamed the previous state government for the delay in construction of the Mahesra bridge on the Sonauli- Gorakhpur road.

Jewar airport

The construction for the Jewar International Airport in Greater Noida will begin before the 2019 general elections with the Uttar Pradesh government having approved the setting up of a joint venture company to acquire 1,441hectare of land for the project at a cost of nearly Rs 4,000 crore.

UP signs MOU with south korea

A memorandum of u.nderstanding with South Korea to enhance cooperation in the field of tourism, skill development, farming and culture.

Agriculture and Animal Husbandry

The estimates of Crop subsector have been prepared by using the Crop wise Area and Production data provided by Directorate of Agriculture, Govt. of U.P. The GSVA of Crop subsector shows a growth of (-) 5.4 % ,4.9 % and 8.6 % respectively in 2014-15, 2015-16 and 2016-17. 8.

The GSVA of Livestock subsector shows a growth of 5.6% in 2014-15, 3.7% in 2015-16 and 3.4% in 2016-17.

Industry

The main indicators used to estimate industry sector estimates are All India Annual Survey of Industries, All India Wholesale Price Index (WPI), All India Index of Industrial Production (IIP) and MCA21 Database. The GSVA of manufacturing subsector shows a growth of (-)10.0% in 2014-15, 1.1% in 2015-16 and 8.5% in 2016-17.

Services

The GSVA of services sector shows a growth of 9.2% in 2014-15, 8.0% in 2015-16 and 7.0% in 2016-17.

Per Capita Income

Per Capita Income of State at current prices (in terms of NSDP at current prices) is estimated to be ` 42267 in 2014-15, ` 46299 in 2015-16 and ` 51920 in 2016-17 showing a growth of 5.3% in 2014-15, 9.5% in 2015-16 and 12.1% in 2016-17.

SpiceJet opens five new air routes in Uttar Pradesh

An agreement was signed between the Uttar Pradesh government and private air carrier Spice Jet on Wednesday to fly on five new routes in the state, an official said. The new routes on which flights will begin after clearances from the Union Civil Aviation Ministry and the UP government are Varanasi-Kolkata, Varanasi-Bengaluru, Kanpur-Mumbai, Kanpur-Bengaluru and Gorakhpur-Bengaluru.

Govt to set up Khadi Parks to promote ‘Brand UP’, boost job creation

To boost indigenous khadi and institutionalise the sector for local job creation, the Yogi Adityanath government is looking at setting up of Khadi Parks in Uttar Pradesh.

The first Khadi Park is proposed at Kanpur Nagar district’s Bilhaur town, which is situated about 100 km from the state capital of Lucknow.

Uttar Pradesh: Unorganised Manufacturing Sector statistics

The number of unorganised manufacturing enterprises estimated after the survey analysis was 163538.
At State level the broad activity category ‘Manufacture of food products’ outnumbered in establishment number(25%) followed by the category ‘Manufacture of wearing apparel’ 16% and ‘Manufacture of textiles’ 11%.
The survey revealed that Kanpur Nagar had the highest share (7%) in total number of unorganised manufacturing enterprises followed by Agra (6%), Meerut (5%), Allahabad (4%) and Ghaziabad (3%)
GB Nagar had the highest share (19.90%) of estimated number of workers of unorganised manufacturing enterprises in India followed by Hardoi (11%), Agra(6%), Kanpur Nagar(6%) and Ghaziabad(5%).
Proprietary enterprises (i.e. enterprises owned by a single household) had dominant share (93%) of unorganised manufacturing enterprises and the rest were operated either on partnership basis or by SHG/Trust or by Others
About 90% of the unorganised manufacturing enterprises were operational the yearlong while about 5% of the enterprises under survey coverage operated for 9 months and the rest 5% remained operational for less than a quarter of the reference year
About 49% of the unorganised manufacturing enterprises were owned by persons belonging to Other Backward Classes (OBC), 43% owned by persons belonging to the category Others, 7% owned by Scheduled Castes and a negligibly small part 0.85% owned by Scheduled Tribes.
At the State level the districts Kanpur Nagar and Agra (7% each) had the most number of enterprises registered with any of the registering authorities followed by Ghaziabad (5%) and then by Meerut and G.B. Nagar (about 4% each).
About 25% of the unorganised manufacturing enterprises had reported of not having received any financial assistance from government. The rest 75% received assistance from the government in form of financial loans.

Uttar Pradesh along with Maharashtra in race to become $1 trillion economy

According to the Central Statistics Office, the size of the Maharashtra and Uttar Pradesh economies was $308 billion and $172 billion, respectively, in 2015-16. In 2016-17, UP became a $196 billion economy, while data for Maharashtra is not available for that year.

Industrial corridor in bundelkhand

Prime Minister Narendra Modi has announced that his government will establish a Rs 20,000-crore defence industrial production corridor in Bundelkhand — a region divided between Uttar Pradesh and Madhya Pradesh — that will generate 2,50,000 jobs and bring development to one of the most impoverished regions of the country.

UP Investors Summit 2018: CM Adityanath signs 1,045 MoUs, worth Rs 4.2 trn

Uttar Pradesh has signed 1,045 pacts worth Rs 4.28 trillion on the first day of the UP investors’ summit.

Adani Group will invest Rs 35,000 crore in Uttar Pradesh

Adani Group today said it will invest Rs 35,000 crore in Uttar Pradesh over the next five years in various sectors.

Promising to stand with the leadership in transforming the state, Gautam Adani of the Adani Group committed an aggregate investment of Rs 35,000 crores in UP.

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