UPPSC - CSE

Combined State / Upper Subordinate

Services Examination
Prelims & Mains

Uttar Pradesh Public Service

Commission, Prayagraj

General Studies
Paper 6

Economy, Geography and Science &

Technology of Uttar Pradesh
 Economy, Geography and Science &
Technology of Uttar Pradesh
Paper - 6
S.No. Chapter Name Page No.
1. 1
2. 5
3. 10
4. 13
5. 21
6. 26
7. 35
Public and Private Partnership in the Development of Uttar
8. 45

9. 48
Public Welfare Schemes, Projects and Planned Development,
10. Human Resources and Skill Development of Uttar Pradesh 52

11. 72
12. 75
Uttar Pradesh: Commercialization and Production of
13. 91

14. 98
National Parks and Wildlife Sanctuaries and Wetlands in
15. 103

16. 108
U.P. Their Impact in Fisheries, Grapes, Silk, Flowers,
17. 110

18. 116
Issues, Dissemination and Efforts of Science and Technology
19. 121
 1 State Budget-2024-2025
Chapter
Under Article 202 of the Constitution of India, the • Semiconductor policy has been approved by the state
statement of estimated receipts and expenditure of the government. This policy will pave the way for
State Government, presented before the Legislature in establishment and development of semiconductor
respect of each financial year, which is from 1st April to units in the state, which will bring large-scale
31st March, is called “Annual Financial Statement” in the investment in the state from within the country and
Constitution. This statement is colloquially called budget abroad. Uttar Pradesh has become the fourth state in
or income-expenditure. the country to bring such a policy.
Government accounts are kept in three parts: - • Uttar Pradesh was honored with the State Champion
Part - 1 - Consolidated Fund in Aviation award at the Wings India Avadd-2024 held
Part - 2 - Contingency Fund in Hyderabad.
Part 3- Public Account • Under the Pradhan Mantri Kisan Maan-Dhan Yojana,
• Uttar Pradesh Finance Minister Suresh Kumar Khanna small and marginal farmers of the state are being
presented the budget for the financial year 2024-25 provided a fixed monthly pension of Rs 3000 for both
in the state assembly (this is his 5th budget). The total men and women on attaining the age of 60 years.
outlay of ₹7,36,437.71 crore for the next financial
year includes new schemes worth ₹24,863.57 crore,
Women and Child Development
• Of the total expenditure, ₹5,32,655.33 crore has been • Under the Destitute Women Pension Scheme, the
allocated to the revenue account and ₹2,03,782.38 amount of pension payable to the eligible
crore to the capital account. beneficiaries has been increased from Rs 500 per
o For the next financial year, the total receipts in month to Rs 1000 per month.
the Uttar Pradesh government budget are • Under the Chief Minister Kanya Sumangala Yojana, a
estimated at ₹7,21,233.82 crore, which includes total assistance of Rs 15,000 is being provided to
estimated revenue receipts of ₹6,06,802.40 crore eligible girls in 6 different categories.
and capital receipts of ₹1,14,531.42 crore. • 17.82 lakh beneficiaries have benefited from this
o This is the state's biggest budget of more than scheme from the financial year 2019-2020 to 2023-2024.
₹7.36 lakh crore. • Under the Women Farmers Empowerment Project,
o the economy of UP is the second largest economy the target is to provide technical support by forming
of the country. 200 producer groups in the financial year 2024-2025.
o UP is now a revenue-surplus state. Due to the • Under the Uttar Pradesh Rani Laxmibai Mahila and Bal
focus on schemes related to 'mother power' and Samman Kosh, there is a provision to provide financial
women in the state, this budget is being called compensation ranging from Rs 1 lakh to Rs 10 lakh to
'Pink Budget'. women and girls who are victims of heinous crimes.
• Revenue surplus (GSDP%)- 2.97- 74147 CR
Youth
• FISCAL DEFICIT – 3.46%- 86530CR
• 124 rural stadiums/multipurpose halls have been
• DEBT-(GSDP%)- 32.7%- 816926.2CR"
constructed in 117 development blocks of the state.
• Budget presented by Finance Minister Suresh Kumar
• 53,800 Yuvak Mangal Dal and 51,300 Mahila Mangal
Khanna
Dal have been formed in the Gram Panchayats of the
• In the budget, the governance of the state was said to
state. Through these parties, participation of youth
be inspired by Ram Rajya.
has been ensured in works of national and social
• In the ranking of "Ease of Doing Business", the state
importance.
which was earlier at 14th place, is now at second place
• Uttar Pradesh's folklore team won the gold medal by
in the country. Today Uttar Pradesh has become the
securing first position in the 26th National Youth
leading developing state of India.
Festival held in Karnataka from January 12 to 16, 2023.
• Today the unemployment rate in the state is only 2.4
• Under Operation Trinetra, 8,54,634 worth of CCTV
percent.
cameras have been installed.

ToppersNotes / 9614-828-828 1
Labor Welfare • In comparison to the year 2017, there will be a 76
percent reduction in the number of AES (Acute
• About 8.32 crore workers of Uttar Pradesh have been
Encephalitis Syndrome) patients and a 98 percent
registered on the “e-Shram” portal created by the
reduction in the death rate in the year 2023, and an
Government of India, which is the highest in the
85 percent reduction in the number of JE (Japanese
country.
Encephalitis) patients and a 96 percent reduction in
• From August 26, 2021 to October 31, 2021,
the death rate has been done.
approximately Rs 1600 crore was paid at the rate of
• Free dialysis facility is being provided in all 75 districts
Rs 2 thousand under maintenance allowance to 80.11
of the state.
lakh workers registered on the e-Shram portal.
• By integrating the Construction Workers Death, Infrastructure and Industrial Development
Disability Assistance and Disability Pension Scheme
and Construction Workers Funeral Assistance • A new Industrial Development Authority (BIDA) is
Scheme, a new scheme has been made "Construction being formed in the Bundelkhand region, under which
Workers Death and Disability Assistance Scheme". In there is a plan to develop industrial, commercial and
all the schemes, till November 2023, 40,183 workers residential townships in the Bundelkhand region on
were benefited and an amount of Rs 433 crore was the lines of Noida and Greater Noida.
spent. • Along with special schemes related to semiconductor,
• Under the Construction Workers Critical Illness data center, startup and IT sectors, a policy has also
Assistance Scheme, 100 percent reimbursement of been implemented to encourage electronics
treatment expenses is being provided for serious manufacturing in the year 2022.
illnesses in government hospitals. • Work is being done at a fast pace on a large scale in
the Defense Corridor in the state. Out of 6 nodes of
Financial Inclusion Defense Corridor, allotment of 3 nodes has been
• Under Pradhan Mantri Jan Dhan Yojana, Uttar completed.
Pradesh ranks first in the country with 9 crore • Under Swami Vivekananda Youth Empowerment
accounts in the state. Scheme, a provision of Rs 4000 crore is proposed for
• Uttar Pradesh is at first place with 5 crore 54 lakh distribution of tablets/smart phones. More than 25
enrollments in the state so far under the Prime lakh tablets/smartphones have been distributed in
Minister's Suraksha Bima Yojana. the current year.
• Under the Pradhan Mantri Jeevan Jyoti Bima Yojana, • A provision of Rs 2057 crore 76 lakh is proposed for
Uttar Pradesh is at second place with 1.90 crore the Ganga Expressway project, which is more than
enrollments in the state so far. twice as compared to the current year.

Industrial Development Some Important Provisions in the UP

• With the inauguration of Maharishi Valmiki Budget are:
International Airport, four international airports are
operational in the state and South Asia's largest • Provision of Rs 4000 crore for free distribution of
international airport is going to open soon in Jewar, tablets and smart phones to the youth.
Noida. With this, Uttar Pradesh will become the only • Rs 2057 crore for Ganga Expressway project
state in India with five international airports. • Rs 2500 crore for preparation of Maha Kumbh Mela
• Uttar Pradesh has received the category of in the year 2025
"Achievers" in the Ease of Doing Business Ranking and • Rs 100 crore for overall development of Ayodhya
Accessibility of Logistics in Various States (LEADS- • Rs 150 crore for expansion of Maharishi Valmiki
2023) ranking. International Airport in Ayodhya
• Rs 1150 crore for the construction work of
Medical Field International Airport in Jewar, Gautam Buddha Nagar.
• Due to the efforts of the state government, the • Rs 150 crore for setting up NIFT in Varanasi
maternal mortality rate has reduced from 285 per o Rs 200 crore for PM Mega Integrated Textile and
lakh in the year 2014 to 167 per lakh in the year 2022 Apparel Park in Lucknow-Hardoi
and the infant mortality rate has reduced from 48 per • The budget aims to achieve a growth rate of 5.1
thousand in the year 2014 to 38 per thousand in the percent for the agriculture sector in the state.
year 2020.

ToppersNotes / 9614-828-828 2
 o Three schemes were announced to advance the To provide long-term and short-term employment training
agriculture sector. One of the schemes, Rajya Krishi to the youth, government industrial training institutes are
Vikas Yojana, will have a provision of ₹200 crore. being upgraded and new centers are also being
o ₹200 crore has been allocated for the World established in underserved areas with the participation of
Bank-backed UP Agris scheme. With an allocation private institutions.
of ₹60 crore, the third plan aims to install In higher education institutions also, 113 colleges have
automated weather stations-automatic rain been selected for skill-based courses – BBA (Retail), BBA
gauges in blocks and panchayats.
(Logistics), BBA (Healthcare) and BBA (Tourism and
• An outlay of Rs 2,400 crore has been proposed to
Hospitality).
provide electricity at concessional rates for the
• Practical or vocational orientation program for
operation of private tube wells of farmers.
students of class 6 to 8 for strengthening of vocational
• ₹449.45 crore has been proposed for the
education and strengthening of vocational education
implementation of PM Kusum Yojana.
plan at secondary level in the financial year 2024-
• Under the Green Energy Karandar-2 project of the
2025 by developing schools as hub and spokes model
Government of India, it is planned to develop a 4000
MW capacity solar park for solar energy production in to meet local demand.
the Bundelkhand region of the state. o as per ODOP, there is a plan to conduct courses
• Ayodhya and Varanasi cities are being developed as as per National Curriculum Framework and
model solar cities. National Credit Framework to more and more
• A budget provision of Rs 914 crore is proposed as students in job roles/sectors.
Uttar Pradesh's share in the Delhi-Ghaziabad-Meerut o In this, emphasis will be laid on providing
Corridor Regional Rapid Transit System Project. certificates in computer education along with UP
• Keeping in view the urgency of local needs of the Board certificate on passing 12th through
districts, a budget of Rs 95 crore is proposed under National Institute of Electronics and Information
the Critical Gaps Scheme to fill the critical gaps of Technology.
various development works. o The credit for the skill training received by the
• Under the Chief Minister Micro Entrepreneur students will be included in their credit bank.
Accident Insurance Scheme, which is operational With this, students will get the opportunity to get
from 2023, there is a provision to provide financial higher education along with employment.
assistance up to a maximum of Rs 5 lakh to micro • With the participation of Tata Technologies Limited,
entrepreneurs. the construction of modern workshops and
• To encourage industrial institutions in the private classrooms in 150 industrial training institutes in the
sector, 10 pledge parks are being established in the state sector is in the final stage. Other such remaining
state.
69 institutions of the state where less
• A budget of Rs 150 crore is proposed for purchasing
• In order to provide training along with allowances to
land for the establishment of National Institute of
the youth in industries through apprenticeship, a
Fashion Technology (NIFT) in Varanasi district.
provision of Rs 70 crore is proposed for the Chief
• To provide uniforms, sweaters, school bags, shoes,
Minister Apprenticeship Promotion Scheme in the
socks and stationery to the students, the purchase
financial year 2024-2025.
process is being stopped and the amount at the rate
of Rs 1200 per child is being transferred directly to the • In view of the need for excellent training for the
accounts of the parents through DBT. players studying in residential sports hostels,
• Under the Uttar Pradesh Startup Policy-2020, AKTU arrangements have been made to engage 50
has established an Innovation Hub under the Center international players for training at an honorarium of
of Advanced Studies in the university campus. Rs 1.50 lakh per month.
• Our government has resolved to achieve the target of • A provision of Rs 50 crore is proposed for the award
01 trillion dollars for the economy of the state. scheme to the winning players of national and
• At present, there is a provision for vocational international competitions.
education as well as certification in 301 government • A provision of Rs 12 crore is proposed for the
schools under Praveen scheme through vocational establishment of a Sports Science and Injury Centre.
education and skill development mission in 804 • Under Mahakumbh, 2025, a budget provision of Rs
government and 729 aided schools at secondary level. 100 crore is proposed for various works.

ToppersNotes / 9614-828-828 3
• A provision of Rs 14.68 crore is proposed for the • A provision of Rs 48.94 crore is proposed for Project
establishment of Nishad Raj Guha Cultural Centre, Tiger and Project Elephant scheme.
Shringverpur, Rs 11.79 crore for the establishment of • A provision of Rs 50 crore is proposed for the
Music College in Hariharpur of Azamgarh district and establishment of Kukrail Night Safari Park in Kukrail
Rs 10.53 crore for the establishment of Maharishi forest area located in Lucknow district.
Valmiki Cultural Centre, Chitrakoot.
• Rs 10 crore is proposed for the International
Tribal Development
Ramayana and Vedic Research Institute in Ayodhya. • Various types of skill development programs for
economic development of Scheduled Tribes in
Tourism districts Lakhimpur-Kheeri, Balrampur,
• More than 37 crore 90 lakh tourists came to Uttar • Operated in Bijnor and Bahraich/Shrawasti and Maharajganj.
Pradesh from January to October in the year 2023, out • Under the Minimum Support Price Scheme for Minor
of which the number of Indian tourists is about 37 Forest Produce, the government is promoting
crore 77 lakh and the number of foreign tourists is marketing of minor forest produce, strengthening of
about 13 lakh 43 thousand. haats and markets and construction of warehouses
• Like every year, this year also the festival of lights was for purchasing non-timber minor forest produce at
organized on a large scale in Ayodhya. On this the fixed minimum support price.
occasion, a Guinness World Record was created by Justice
lighting 22 lakh 23 thousand lamps at Ram Ki Pauri.
• A provision of Rs 100 crore is proposed for the
Few Poem by Finance Minister in Budget National Law University under construction in
Prayagraj district.
• Urdu poet Khurshid Haider - गैर परों से उड़ सकते हैं हद- • A provision of Rs 300 crore is proposed for the
से-हद दीवारों तक, अंबर तक वहीं उड़़ेंगे जिनके अपने पर होंगे। establishment of courts in various districts of the state.
• Quoting Urdu poet and film lyricist Amir Qizilbash • Under the pilot project, a provision of Rs 700 crore is
proposed for the construction of the court complex.
with a slight twist: "तेरे िुनून का नाततिा ज़रूर तनकलेगा,
• It has been decided to increase the Advocates
इसी ससया समंदर से नरू तनकलेगा (आपका िन
ु ून तनजचित Welfare Fund from Rs 200 crore to Rs 500 crore.
रूप से फल दे गा, इस अंधेरे से रोशनी तनकलेगी) • In case of death of an advocate who is a member of
Uttar Pradesh Advocate Social Fund Scheme, the
• यन
ू ान, समश्र, रोमा सब समट गए िहााँ से, अब तक मगर है maximum limit of permissible assistance has been
बाकी नामों-तनशां हमारा।।- Allama Iqbal increased from Rs 1.50 lakh to Rs 5 lakh.
• तम्
ु हारी शजससयत से ये सबक ल़ेंगी नई नस्ल़ें, वहीं मंजिल Labor
पर पहुाँिा है िो अपने पााँव िलता है - Masoom Ghaziabadi • With a view to providing free quality and objective
education to the children of construction workers,
Forest and Environment one Atal Residential School is being established in
• The state government is continuously making efforts each division, the total construction cost of which is
to increase greenery in the state. At present, forest Rs 1267 crore.
cover and tree cover in Uttar Pradesh is 9.23 percent • 16 Atal Residential Schools have been inaugurated by
of the geographical area of the state. The target is to the Honorable Prime Minister. At present the
increase forest cover and tree cover to 15 percent by academic session 2023-24 for class 6 has started.
the year 2030.
• In the current financial year 2023-24, for the
Revenue
expansion of greenery in Uttar Pradesh, the work of • A total of 3,72,039 complaints related to illegal
planting 36.16 crore trees was done on a large scale encroachment have been received on the anti-land
in the state against the target of 35 crore. A target of mafia portal in the state, out of which 3,70,748
planting 35 crore trees is proposed in the rainy complaints have been resolved and under the
season-2024. campaign, a total area of 66,872 hectares has been
• A provision of Rs 600 crore is proposed for the social freed from illegal encroachment.
afforestation scheme. • Under the Nirbhaya scheme, 50 air-conditioned pink
services are being operated for women, in which
• A provision of Rs 175 crore is proposed for the nursery
panic buttons are installed in all the buses for the
management scheme.
safety of women passengers. In case of any disaster,
• A provision of Rs 110 crore is proposed for the
traveling women remain in constant touch with the
programs run under the Green India Mission.
dial 112 service of Uttar Pradesh Police.

ToppersNotes / 9614-828-828 4
 Trade, Commerce and Industry
+*

2
Chapter in Uttar Pradesh
● Uttar Pradesh is the largest producer of sugarcane in ● The work of producing goods comes under industry
India. and the remaining activities are related to commerce.
● Sugarcane cultivation in the state was 2.2 lakh ● In short, we call them 'Business' which is a broad term
hectares and the total production was about 132.4 and includes industry, trade and commerce.
lakh tonnes. ● In ancient times many major trading centres were
● Uttar Pradesh is the second largest producer of developed for import and export of goods, some of
vegetables in the country. which were Pataliputra, Peshawar, Taxila, Indraprastha,
● It is the largest producer of pointed gourd, peas, Mithila, Maduram, Surat, Ujjain and Kanchi.
potatoes, muskmelons, watermelons and pumpkins ● Major export commodities were – spices, wheat,
in India. sugar, indigo, opium, sesame oil, cotton, parrots, live
● The state is also the third largest producer of sweet animals and animal products etc.
potatoes. ● Major imports were horses, animal products,
● Uttar Pradesh has the largest number of micro, Chinese silk, linen, wine, gold, silver, copper etc.
medium and small enterprises (MSMEs) in India. ● There were all types of cities – port cities,
● With an investment of over US$4 billion, 175,000 manufacturing cities, trading cities, sacred centres
MSME units were set up during the 11th Five Year and pilgrimage cities. Their existence is an index of
Plan. the prosperity of the merchant communities and
● The largest consumer with increase in per capita professional classes.
income, ● Commercial activities led to the development of
○ Per capita income in Uttar Pradesh is various aspects supporting trade such as
continuously increasing, due to which it is one of transportation, banking, finance and
the largest markets for industrial houses. communication, which increased the scope for
● There are a large number of vocational schools, trading activities.
engineering colleges and polytechnic institutes in
Industrial Development
Uttar Pradesh, which keep preparing skilled
employees. ● Uttar Pradesh has a wide variety of industries
● The state ranks second, third and fourth in the including textiles, food processing, leather, chemicals
number of ITIs/ITCs, business schools and and engineering.
engineering colleges respectively. ● The state government has taken several initiatives to
● Uttar Pradesh is the largest milk producing state in promote industrial growth, such as providing
the country with about 17.6 percent (23.3 million subsidies and incentives to industrial units, setting up
tonnes) of the total milk produced in the country. industrial estates and parks and simplifying
● Growth rate of service sector – CAGR 9.3% (CAGR) ( procedures for starting and running businesses.
Compound Annual Growth Rate ) ● Organizing GIS-Geographic Information System.
● The primary sector contributes 29.1% to the GSDP of Agro based Industry
Uttar Pradesh as compared to 19.7% of the national
● Agro-based industries such as sugar, cotton textiles
GDP.
and food processing are among the major industries
● The percentage of state GSDP in the service sector
in the state.
has increased from 48% to 55%.
● UP is the largest producer of sugarcane and has a
Trade or Business in Uttar Pradesh significant presence in the sugar industry.
● Business begins with production and ends with Infrastructure
consumption.
● The state has a strong infrastructure to support
● A series of steps are involved in delivering finished
industries with a network of roads, railways, airports
goods to the consumer.
and ports.

ToppersNotes / 9614-828-828 5
● The state government is also investing in ● Varanasi
infrastructure development, such as the construction ○ Varanasi is a holy city and a major center of silk
of expressways, high-speed rail corridors and weaving and handicrafts.
airports. ○ The city is known for its Banarasi silk sarees,
which are famous all over the world.
Trade and Commerce ○ Varanasi is also an important center for brass
● UP has a strong trade and commerce sector, with goods, ivory work and wood work.
several large wholesale markets and trade fairs held ● Noida:
throughout the year. ○ Noida is a satellite city of Delhi and a major
● The state has several major commercial centres, industrial hub in UP.
including Lucknow, Kanpur, Agra and Varanasi. ○ The city is home to several multinational
companies and has a significant presence in the
MSMEs
software development, electronics and
● Micro, Small and Medium Enterprises (MSMEs) form automotive industries.
an important part of the industrial landscape in UP. ○ Noida also has a large wholesale market for
● The state government has launched several schemes consumer goods.
and initiatives to support the growth of MSMEs, such
as providing financial assistance, setting up Industry in Uttar Pradesh
incubation centers and promoting exports. ● There are diverse and naturally evolving industrial
● Overall, trade, commerce and industry are important activities.
sectors of the economy of UP, and the state ● Foreign direct investment (FDI)-Oct 2019 to Sep,
government is committed to promoting their growth 2023- $ 1.44 bn
and development through various policies and ● Fast growing IT hub.
initiatives. ● Services showing large-scale growth:
telecommunications, banking, insurance, logistics,
Major Business Centers in Uttar Pradesh transportation, health and education
(UP) ● Export products by State: Software, electronics,
computer hardware, chemicals, stone products, brass
● Kanpur
work, betel leaves, potato based products, hand
○ Kanpur is one of the largest industrial cities of UP printing, leather goods, cotton threads, sarees, silk
with a vibrant trade and commerce sector. dress materials, black soil Utensils, handicraft items,
○ The city is known for its leather industry, which art products, jewellery.
is one of the largest in the country. ● Major factors responsible for industrial development
○ Kanpur also has a significant presence in the in UP:
textile, chemical and engineering industries. ○ Availability of natural resources and raw
● Lucknow materials
○ Lucknow is the capital of UP and a major ○ Access to strong infrastructure
commercial centre. ○ Wide Commutation Network
○ The city has a diverse economy, with industries ○ Availability of skilled labour
ranging from textiles and handicrafts to ○ Provision of large scale investment and
software development and pharmaceuticals. incentives proposed by the State.
○ Lucknow is also known for its traditional Major Industries Industrial Spectrum
Chikankari embroidery, which is a major export Information technology, Cement, vegetable oils,
item. agro processing, tourism, textiles, cotton yarn,
● Agra mineral based industries, sugar, jute, locks, carpets,
textiles, handlooms and brass utensils, glassware,
○ Agra is famous for its historical monuments such
handicrafts, food bangles, marble,
as the Taj Mahal, but it is also an important trade processing and sporting penmanship, food
center of UP. goods, vegetable and products and beverages,
○ The city is known for its leather goods, animal oils and fats, dairy tobacco, chemicals and
handicrafts and tourism industries. products, grain mill chemical products,
○ Agra is also a major center for the production of products, animal feed, metals, rubber and Plastic
rugs and carpets. products, metal
shoes and boots.
fabrication work motor

ToppersNotes / 9614-828-828 6
 vehicles, trailers and Agro based Industries in Uttar Pradesh
semi-trailers,
● About 500 food-processing units are located and
communications
equipment, functioning in this region.
transportation ● Agricultural produce – Mustard, gram, peas, lentils,
equipment, electrical groundnuts and mustard.
machinery and ● Sugarcane – Major contributor to sugar production
equipment, furniture, ○ The state has the highest contribution in the
non-metallic mineral country's sugar production.
products, publishing,
● The agricultural sector also actively participates in the
printing and media, paper
and paper products, conservation and processing of potatoes and peas.
glassware and Leather ○ Come a long way in the field of food processing.
related products etc. ● Major food products – juice making, canned food and
various other raw, preserved or ready-to-eat options.

List of Major Industrial Centers/Districts of Uttar Pradesh

Sr. No. Manufacturing Products Major Centers/Districts
1. Handlooms and Handicrafts Bhadohi, Mau, Azamgarh, Tanda, Banaras, Meerut and Etawah
2. Cement Mirzapur
3. Diesel-Electric Locomotive Varanasi
4. Chicken Embroidery Lucknow
5. Leather Products Agra and Kanpur
6. Musical Instruments and Sports Related Meerut
Items
7. Khurja Pottery Bulandshahr
8. Brass Work Moradabad
9. Iron Sheet Metalware, Woodworks, Agra, Aligarh, Bareilly, Prayagraj, Ghaziabad, Noida, Lucknow
Aluminum Artwork and Glassware
10. Software, Electronic Components, Mobile Noida (Greater Noida)
Phones, Automobile, Ites and Bpo
11. Clay Toys Agra
12. Biscuits Modinagar, Agra and Aligarh
13. Perfumes and Fragrance Oils Kannauj, Ghazipur, Jaunpur, Lucknow and Allahabad
14. Chemical, Food Processing Units, Gajraula
Medicines, Fertilisers, Fmcg
15. Chemical, Food Processing Units, Leather, Unnao
Meat Processing Units, Quilt
Manufacturing Units
16. Glass and Bangle Work Firozabad
17. Petroleum Refinery Mathura
18. Carpet Manufacturing Bareilly, Agra, Aligarh, Etawah, Mirzapur
19. Floor Cloth Agra, Varanasi, Bhadohi, Mirzapur, Bareilly, Saharanpur
20. Matchbox Industry Bareilly, Saharanpur, Allahabad, Meerut
21. Soap Industry Kanpur, Agra, Modinagar, Ghaziabad, Meerut
22. Furniture Industry Hathras, Varanasi, Saharanpur, Bareilly
23. Wooden Toys Lucknow and Varanasi
24. Cigarette Industry Saharanpur, Ghaziabad
25. Paint-and-Varnish Industry Kanpur, Meerut, Ghaziabad, Modinagar
26. Torch Making Lucknow
27. Pharmaceutical Manufacturing Kanpur, Jhansi, Lucknow, Saharanpur
28. Tap Pipe Allahabad, Kanpur, Lucknow
29. Chinese Pottery Khurja, Allahabad
30. Iron Weights Saharanpur, Agra
31. Cane Sticks Bareilly

ToppersNotes / 9614-828-828 7
Minerals and Heavy Industry Post Covid-19 Accelerated Investment
● Minerals found in Uttar Pradesh: Limestone, Incentive Policy 2020
dolomite, glass-sand, marble, bauxite, non-plastic
fireclay, uranium, barytes and andalusite, sand-stone, ● Will try to ease investment conditions and generate
pebbles, sand, salt panter, maurang sand, diaspore, employment on a large scale in the areas of
sulphur, Magnesite, pyrophyllite, silica sand. Purvanchal, Madhyanchal and Bundelkhand.
● Copper, Lead, Iron ore and placer gold – mined on a ● This applies to new investors who apply under it
small scale in the Himalayas, Bundelkhand and parts
within six months of the notification.
of the South-eastern districts.
● Existing units can also avail the benefits of the rules if
Sr.
Mineral Situation they accelerate their investments as per the
No.
Singrauli Coalfields, provisions of the policy and 80% of their investments
1 Coal are made after the notification date.
Sonbhadra
Hamirpur, Jhansi, ● Industrial undertakings investing in expansion or
2 Diaspore & Pyrophyllite Lalitpur and diversification of existing units will not be eligible.
Mahoba
One District – One Product Scheme (2018)
3 Silica Sand Naini (Allahabad)
Shankargarh, ● Objective: To provide employment to about 25 lakh
4 Glass Sand Mineral
Lohargarh, Bargarh persons of the state.
5 Andalusite & Calcite Mirzapur ● UP Government will give Rs 25000/- to local
Banda, Varanasi, craftsmen and businessmen for the next 5 years.
6 Bauxite ● Initially launched on 24 January 2018.
Lalitpur
7 China Clay and Dolomite Banda, Sonbhadra ● Will help in increasing the GDP of the state by 2%.
● The government will implement this project with the
8 Ochre Banda
help of several industries operating in different states.
Banda, Hamirpur,
● Moreover, each district will be allotted one product
9 Granite Lalitpur and
under the Uttar Pradesh One District One Product
Mahoba
Scheme.
10 Felspar Jhansi
● Objective:
Fireclay, Limestone, ○ Preservation and development of local crafts and
11. Sonbhadra
Potash and Sillimanite talents, as well as promotion of the arts
Iron Ore (Hematite) and ○ Increase in employment and income of the state.
12. Lalitpur
Rock Phosphate ○ Improve product quality.
○ (Through various methods like packaging,
Major Industrial Policies of UP branding and others).
Uttar Pradesh Data Center Policy 2021 ○ Addressing the challenges of regional inequality
and economic disparity.
● To further promote proposals for setting up data ○ After the success of the scheme, taking it to
centers in the State, in line with the Centre's efforts national and international level.
for data localization. Uttar Pradesh Startup Policy 2020
● An investment target of Rs 20,000 crore has been set.
● Applicable for five years from the date of notification.
● The target is to develop a 250 MW data center
● It will also help in corporatization of more than 10,000
industry in the state and set up at least three modern
startups.
private data center parks. ● Will also promote an enabling ecosystem and
● Investors will be given provisions related to capital, establish a state-of-the-art Center of Excellence.
interest rates, subsidies on land purchase, as well as ● The country's largest incubation hub will also be
non-financial incentives. established in Lucknow.
● Special incentives for proposals coming in backward ● Equal importance will also be given to startups in
various sectors of medical and health, agriculture,
areas Bundelkhand and Purvanchal.
khadi, energy, education, transport, tourism etc.

ToppersNotes / 9614-828-828 8
● Special emphasis on startup ventures with additional lockdown, the UP state government is looking to
support and financial assistance in backward areas of utilize their skills.
Bundelkhand and Purvanchal regions. ● The aim of the government is to provide them jobs as
● Importance: per their efficiency and self-employment
○ With over 35 lakh migrant workers from other opportunities are also promoted in various sectors.
states arriving in UP after the COVID-19

ToppersNotes / 9614-828-828 9
 3 Investment in Uttar Pradesh:
Chapter Issues and Impact
● Investment in Uttar Pradesh, India's most populous ● The government needs to maintain law and order to
state, can bring significant improvements in terms of ensure a safe and secure environment for businesses.
economic growth, employment generation and ● If these issues can be resolved, investment in Uttar
improvement in living standards. Pradesh could have a significant impact on the state's
● However, there are also several challenges and issues economy.
that need to be addressed for the investment to have
Importance
a positive impact on the state's economy.
● Investment can create new employment
Some of the main issues affecting opportunities,
○ Can promote innovation
investment in Uttar Pradesh -
○ Can encourage development in various sectors.
Infrastructure: ● The investment can help reduce poverty and improve
● The infrastructure of Uttar Pradesh is often the standard of living of people in Uttar Pradesh.
considered inadequate to support business activities.
Why to invest in Uttar Pradesh?
● To attract investments the state needs to invest in
● With a rich resource base, Uttar Pradesh is India's
developing better transport, communication and
third largest economy, contributing about 8% to the
power infrastructure.
National GDP.
Bureaucracy: ● The state has the country's largest consumer base
● Uttar Pradesh has been criticised for bureaucratic consisting of approximately 24 crore population.
barriers, which may delay or discourage investors ● Uttar Pradesh has a major demographic dividend
from setting up businesses in the state. (56% of its population falls in the working class) which
● Streamlining administrative processes and reducing will be a major factor in future progress.
red tape could make the state more attractive to ● Uttar Pradesh today stands proudly second in the
investors. country in the field of “Ease of Doing Business” under
the “Business Improvement Action Plan” of the
Labour Laws: Department of Industry and Internal Trade
● Labour laws in Uttar Pradesh are often seen as Promotion, working under the Ministry of Commerce
restrictive and inflexible, making it difficult for and Industry, Government of India.
businesses to hire and fire workers. ● To come second in “Ease of Doing Business” ranking
● Reforms in labour laws can create a business-friendly with an improvement of 10 points in the last 3 years
environment and encourage investment. ● Big Market:
○ Uttar Pradesh is the most populous state of India
Education and Training:
with a population of over 200 million people.
● Uttar Pradesh has a large and growing workforce, but
This makes it an attractive market for businesses
there is an acute shortage of skilled labour.
looking to expand their customer base.
● Improving education and training programs can
● Strategic Location:
create a more skilled workforce and attract more
○ Uttar Pradesh is strategically located in the
investment.
centre of India with easy access to major markets
Law & Order: in the northern, eastern and central regions of
● Security and law and order are important for any the country.
business to operate safely and efficiently. ○ This can be beneficial for businesses looking to
● Uttar Pradesh has a history of communal and social establish a distribution network or supply chain.
tension, which can sometimes affect the security ● Abundant Resources:
situation in the state. ○ Uttar Pradesh has a rich pool of natural
resources,

ToppersNotes / 9614-828-828 10
 ○ Which includes fertile land, minerals and water. ○ This can lead to higher GDP growth, increased
○ This can be beneficial for businesses in tax revenue and improved living standards of
agriculture, mining and manufacturing. the people in the state.
● Low Cost of Labour: ● Diversification of the Economy:
○ Uttar Pradesh has a large and relatively low-cost ○ The investment could help diversify Uttar
workforce, which may be attractive to businesses Pradesh's economy, which is currently
that want to keep labor costs under control. dominated by agriculture and manufacturing.
● Government Incentives: New industries and businesses can be
● The Uttar Pradesh government has introduced established, creating a more balanced and
various incentives and subsidies to attract resilient economy.
investment in the state. This includes tax breaks, land ● Skill Development:
allocation and infrastructure support. ○ Investment can also help develop skills in the
● Note- All these factors can contribute to the state's workforce by providing training and
profitability of investment in Uttar Pradesh. However, employment opportunities.
it is important to note that investing involves risk, and ○ This can lead to increased productivity and
businesses need to carefully evaluate the potential efficiency, which can contribute to overall
return on investment before committing capital. economic growth.
● Better Infrastructure:
Investment Areas in Uttar Pradesh ○ The investment could help improve Uttar
Area of Focus Pradesh's infrastructure, including
transportation, communication and power
● Food processing and dairy-
infrastructure.
○ First- In the production of milk, grains and
sugarcane in India. ○ It can increase the connectivity of the state,
○ Second– Fruit production in India reduce logistics costs and make it easier for
○ Third – Domestic production of fishes in India businesses to operate.
● Largest exporter of processed frozen meat in India ● Social Development:
● Handloom and textile ○ Investments in Uttar Pradesh can also have a
● Information Technology positive impact on social development by
● Startup promoting education, health care and other
● Tourism social services.
● Micro, Small and Medium Enterprises ○ It can help reduce poverty, improve people's
● Electronics manufacturing quality of life and promote social inclusion.
● Movie
● Renewable Energy Foreign Investment in Uttar Pradesh
● Civil Aviation ● Foreign Direct Investment (FDI) Inflows:
○ According to the Department for Promotion of
Emerging Sectors Industry and Internal Trade (DPIIT), Uttar
● Medicinal Pradesh witnessed a total FDI inflow of USD 5.5
● Logistics and Warehousing billion between April 2000 and June 2021.
● Electric Vehicle Manufacturing
○ The top sectors attracting FDI in the state are the
● Defence and Aerospace
services sector, construction development,
Benefits of Investing in Uttar Pradesh computer software and hardware, and
● Investment in Uttar Pradesh can have a significant automobiles.
impact on the state's economy and society. Some of ● Ease of Doing Business Ranking:
the potential impacts of investing in UP are: ○ In the latest ranking released by the Government
● Economic Development: of India in 2020, Uttar Pradesh was ranked
○ Investment in Uttar Pradesh can stimulate second among all Indian states.
economic growth by creating new jobs, ○ The state has implemented several business-
generating income and boosting economic friendly reforms, such as the online single-
activities. window clearance system and the land bank
portal.

ToppersNotes / 9614-828-828 11
● Special Economic Zone (SEZ): ○ Uttar Pradesh Cricket Association has signed an
○ There are 14 operational SEZs in Uttar Pradesh, MoU with the state government to build a
with another 8 SEZs under development. stadium with a capacity of 30 thousand in
○ These SEZs are spread across various sectors Barabanki.
including IT/ITES, textiles, food processing and ○ In the UK Partner Country Session on the last day
engineering. of the UP Global Summit, UK companies signed 6
● Top Foreign Investors: MoUs in the security, technology and defense
○ According to DPIIT -Department of Promotion of sectors.
Industries and Internal Trade, the top foreign ○ Proposals worth Rs 63,475 crore have been
investors in Uttar Pradesh between April 2000 received in this sector.
and March 2021 are Singapore, Mauritius, ○ Singapore investors signed MoU worth Rs 29,000
Netherlands, Japan and the United States. crore for spirituality and eco-tourism in Uttar
● Uttar Pradesh Investment Summit: Pradesh at the Uttar Pradesh Global Investors
○ The Government of Uttar Pradesh has been Summit.
organising the Uttar Pradesh Investment ○ Uttar Pradesh Global Investors Summit 2023 is an
Summit since 2018 to showcase the investment initiative aligned with Prime Minister Narendra
potential of the state and attract domestic and Modi's vision to make India a US$ 5 trillion
foreign investors. economy, for which the Uttar Pradesh
○ The 2020 edition of the summit saw the government has set the aspirational target of
participation of over 5,000 delegates from 26 making the state a US$ 1 trillion economy in the
countries, and MoUs worth over INR 65,000 next 5 years.
crore (USD 8.8 billion) were signed. ○ The summit saw the participation of over 10,000
● UP Global Investor Summit-2023 delegates (domestic and international) from over
○ A total of investment proposals worth Rs 33 lakh, 20 countries.
Rs 50 thousand crore were received in 3 days ○ In December 2022, the state government had
from 10 to 12 February 2022. organized road shows in 16 countries and 8
○ With this, a total of 19058 MOUs were signed major cities of India for UPGIS 2023, to attract
here. investors and increase investment in Uttar
○ This will provide employment to about 93 lakh, Pradesh.
82 thousand, 607 people. ○ Many progressive economies like the United
○ The State Government has launched a new online States, United Kingdom, Canada, Japan, South
system called 'Nivesh Sarathi' for the Korea, Singapore, Germany, Netherlands and
convenience of investors and to monitor the United Arab Emirates have been ‘partner
implementation of the MoU. countries’ in this summit.

Focus Sectors of Investment in Uttar Pradesh

ToppersNotes / 9614-828-828 12
 4 Uttar Pradesh: Public
Chapter Finance and Fiscal Policy
● About 77.7 percent of the total population of the
Public Fund/Finance state lives in rural areas.
● The English word Public Finance is also made up of ● Although the contribution of agriculture sector in the
two words Public and Finance. tax revenue of the state is relatively less.
● Here the word 'Public' means: Public Authorities ● The urban area mainly contributes to the non-tax
(public authorities or governments) and the word revenue of the State.
'Finance' means: Receiving income and spending.
● "Public finance is the study of income and expenditure Revenue Generation
of public authorities and their mutual coordination." ● The resources of the state are obtained mainly on the
basis of the state's own resources and transfer from
Parts of Public Finance the central government.
● Public Expenditure ● The main sources of revenue of the state are tax, non-
● Public Revenue tax revenue and transfer from the central
● Public Debt government.
● Financial Administration ● The sources of central transfer are the state's share in
● Fiscal Policy the divisible share of central taxes and grants
received from the centre.
State Public Finance
● According to the data of year 2022-23, the total
● Uttar Pradesh is the largest state of the country in
revenue income of the state is Rs 4,99,213 crore.
terms of population, where according to the 2011
● Rs 2,44,062 crore from tax and non-tax revenue of
census, 16.6 percent of the total population of the
the state
country resides.
● Rs 2,55,150 crore was received from the Center as
● The economy of the state is basically agriculture
divisible share of taxes and as central grants.
based.

The revenue receipts of the state for the last five years are shown in the table. (Rs. in crores)
State's Own Revenue Central Infection
Grant-in-aid from Total Revenue
Years State Taxes and State Non-Tax Share in Central
the Central Receipts
Duties Revenue Taxes
Government
2017-18 97,393.00 19,794.86 1,20,939.14 40,648.45 2,78,775.45
2018-19 1,20,121.85 30,100.71 1,36,766.46 42,988.49 3,29,977.51
2019-20 1,22,825.83 81,705.08 1,17,818.30 44,043.96 3,66,393.17
2020-21 1,19,897.30 11,846.15 1,06,687.01 57,745.88 2,96,176.33
2021-22 1,60,349.78 15,524.02 1,14,894.19 87,963.41 3,78,731.40
2022-23 2,20,655.00 23,406.48 1,46,498.76 1,08,652.47 4,99,212.71

● The share of tax and non-tax revenue of the state was

Commercial Tax Department
47 percent.
● With the aim of providing facilities to brick kiln
About 53 percent share is received through transfer
manufacturers and earning more revenue, the
from the Central Government.
Special Rate Scheme has been made effective from
● Continuous efforts are being made by the state
01 April 2022.
government to increase resources.
● The Vehicle Tracking System System on mobile
● Important efforts made by the State Government for
team vehicles is being continuously strengthened.
resource augmentation as outlined in the Medium
● A Centralised Command Centre has been
Term Fiscal Restructuring Policy, 2022-23 are
established at the headquarters where it is
highlighted.
continuously monitored.

ToppersNotes / 9614-828-828 13
● Continuous efforts are being made to increase the Geology and Mining
number of registered traders in the state. ● Special efforts were made for transparency in
● To increase revenue collection, the department is enforcement works and prevention of tax evasion
making maximum use of IT facilities in both tax so that maximum revenue could be obtained.
assessment and enforcement work.
● In view of the progress in enforcement works, ● The Goods and Services Tax (GST) System has been
weekly/fortnightly review is prevalent at the field implemented in the country from July 2017. It is
level. known that except the tax received from petroleum
● A dashboard has been created to review the progress products, all the components of Value Added Tax
of tax assessment and enforcement works. (VAT) are included in GST. are included in
● The entertainment tax and luxury tax have been
Excise Department included in GST.
● The excise policy for the Financial Year 2021-22 ● According to the budget estimates for the financial
was determined. year 2022-23, GST will be included in the state's own
● Processing fees of country liquor, renewal fees of tax revenue. The share of is about 40.00 percent
retail shops, MGQ-Minimum Guaranteed Quality ● Whereas the share of VAT is about 16.41 percent.
etc. were increased. ● The share of state excise duty has reached 22.28
● Processing fees of model shops and renewal fees percent and the share of stamp and registration duty
of retail shops were increased. is about 13.46 percent.
● Beer processing fees and renewal fees of retail ● The state's own tax revenue mainly depends on the
shops were increased. taxes received from these items.
Transportation
● To increase the revenue receipts of the
department, along with expediting the
enforcement works, review meetings were held
continuously at the departmental level.
● Revenue was increased by recovering the arrears
by running regular special checking campaigns
against the vehicles driven in arrears.
● Demand letters were sent regularly to the owners
of vehicles remaining in arrears and even then, if
the dues are not recovered, recovery letters are Revenue Expenditure
being issued like land revenue. ● The main parts of revenue expenditure are-
○ Payment of interest incurred on recovery of
Stamp and Registration Department
state taxes,
● In order to get the old/pending stamp cases resolved
○ Expenditure on administrative and general
immediately, a special stamp court / resolution
services
scheme was organised by the government till March
○ Expenditure on social and economic services
31, 2022, in which the old pending cases were
● The revenue expenditure on general, social,
immediately resolved with penalty.
economic services and grants of local bodies in the
● Additional revenue was achieved by making special
period from 2017-18 to 2022-23 is given in the table.
efforts to register unregistered flats by Noida
(Rs. in crores)
Industrial Development Authority and Greater
Noida Industrial Development Authority.

Total Revenue
Year Elements of Revenue Expenditure
Expenditures
General Services Social Services Financial Services Grants to Local Bodies
1 2 3 4 5 6
2017-18 2,66,223.52 1,05,781.67 84,251.68 64,634.76 11,555.41
2018-19 3,01,727.96 1,31,057.25 91,311.73 67,258.59 12,100.39
2019-20 2,98,833.04 1,17,674.86 1,03,848.76 62,809.42 14,500.00
2020-21 2,98,543.46 1,19,057.50 1,09,726.67 55,550.91 14,208.38
2021-22 3,56,624.21 1,39,315.57 1,27,198.88 73,609.73 16,500.02
2022-23 4,56,089.06 1,77,692.39 1,69,118.02 91,300.62 18,000.02

ToppersNotes / 9614-828-828 14
● Expenditure on social and other services comes in the revenue expenditure is estimated to reduce to the
economic developmental category and expenditure level of 38.9 percent.
on general services comes in the category of non- ● Development expenditure is estimated to be 57
developmental expenditure. percent in 2022-23.
● In the financial year 2022-23, the share of non-
development revenue expenditure in the total

Salary, Pension, Interest ● The total expenditure on salary, pension and interest
has been shown through a graph as a percentage of
● A large part of the state's expenditure is spent in the the state's revenue receipts and revenue
form of salaries and wages/pension of state expenditure, which clearly shows that the state
employees. government is making meaningful efforts to keep
● This is a committed expenditure of the State these committed expenditures under control.
Government which is mandatory to be borne by the
State Government.

Capital Outlay ● After this, it increased in the years 2018-19 and 2019-
● Capital outlay is the expenditure reflecting the 20, but in the year 2020-21 due to Covid-19, there is
developmental activity of the state. a decrease again.
● Although there is no set standard for capital outlay, ● Capital outlay is expected to increase in the financial
the higher it is as a percentage of Gross State years 2021-22 and 2022-23.

Domestic Product (GSDP), the better it is for the

state.
● In the Financial Year 2017-18, loan redemption was
done by the state government in view of the years-
long debt problem of small and marginal farmers, due
to which there was a reduction in the outlay in the
year 2017-18.

ToppersNotes / 9614-828-828 15
Use of Loan loan was used for development works but a large part
● Loan plays an important role in the developing of the revenue savings is also being used for capital
system, but loan taken in the absence of financial works, which is indicative of a healthy economy.
discipline can adversely affect the economy. Financial Indicators
● To finance public utility projects of the state, the
● There was a revenue deficit situation in the state from
state government takes loans through many means.
1988-89 to 2005-06.
● According to the theory of public finance, taking loan
● In the year 2004 F. R. B. After the passing of M. Act,
to meet expenditure is not bad provided that loan is
the situation of revenue surplus could be achieved in
used for creation of assets.
the year 2006-07 and since then the situation of
● For example, in the year 2002-03, only 46 percent of
revenue surplus was maintained continuously.
the loan taken was used for capital outlay, which
● But in the year 2020-21, due to the Covid-19
means that more than half of the loan was not being
pandemic, the revenue was affected and the state fell
used for capital works, which indicates a disorganized
into a revenue deficit situation.
economy.
● The financial indicators of the state in the past years
● It was above 100 percent level in the period 2016-17
can be understood from the table.
to 2018-19. Which means that not only 100 percent

Major Indicators of Fiscal Position (in crores)

Years Revenue Surplus Fiscal Deficit Primary Deficit
2017-18 12,551.93 27,809.56 -1,326.27
2018-19 28,249.56 35,203.11 3,161.02
2019-20 67,560.13 -11,082.68 -45,895.70
2020-21 -2,367.13 54,622.11 17,193.63
2021-22 22,107.19 74,745.63 32,241.38
2022-23 43,123.65 81,177.98 35,190.52

Fiscal Deficit ● GSDP of Fiscal Deficit during the Financial Year 2019-
● Fiscal deficit is described by the government as ‘the 20. The ratio was within the targets set by the
excess of total disbursements (except debt Fourteenth Finance Commission.
repayments) over total receipts (except debt ● In the said year, there was fiscal surplus of 0.66
receipts) in the Consolidated Fund of the State during percent against the target of keeping fiscal deficit at
a financial year’. 3 percent
● In simple words, it shows the decrease in the income ● According to the actual figures for the year 2021-
of the government compared to its expenditure. 2022, the net fiscal deficit is ₹ 39,286.42 crore.
● A government which has a high fiscal deficit spends According to the budget estimates for the year 2022-
more than its means. 2023, the fiscal deficit was ₹ 81,177.98 crore, which is
● It is calculated as a percentage of GDP or total money estimated to increase to ₹ 81, 325.63 crore according
spent in addition to income. to the revised estimates.
● In any case, only taxes and other revenues are included ● The fiscal deficit in the financial year 2023-2024 is
in the income figures and the amount borrowed to estimated to be ₹ 84,883.16 crore, which is 3.48
meet the revenue shortfall is not included. percent of the Gross State Domestic Product.
● Fiscal Deficit = Total Expenditure of the Government
(Capital And Revenue Expenditure) – Total Income of Primary Deficit
the Government (Revenue Receipt + Recovery Of ● The amount obtained by subtracting the total
Loans + Other Receipts). expenditure burden of interest payments from the
● The most important indicator to assess the financial amount of fiscal deficit represents the primary deficit.
condition of any state is the Fiscal Deficit as a ● In other words Primary deficit = Fiscal Deficit – Total
percentage of GSDP. Expenditure burden of interest payments.
● In the 14th Finance Commission Period 2015-20, it ● The primary deficit of the state is estimated to be
was changed to GSDP. Efforts were made to keep it around 1.72 percent in the year 2022-23.
within 3 percent.

ToppersNotes / 9614-828-828 16
Deficits, Debt, and FRBM Targets for 2023-24 ● Fiscal deficit is projected to be lowered to 3% of GSDP
● The Uttar Pradesh Fiscal Responsibility Act, 2004 by 2025-26.
provides annual targets to progressively reduce the ● At the end of 2023-24, the outstanding liabilities is
outstanding liabilities, revenue deficit and fiscal estimated to be 32.1% of GSDP, lower than the
deficit of the state government. revised estimate for 2022-23 (34.2% of GSDP).
● The budget estimates a revenue surplus of Rs 68,512 ● The outstanding liabilities has risen significantly as
crore (or 2.8% of the GSDP) in 2023-24. compared to 2019-20 level (29.6% of GSDP).
● In 2023-24, the fiscal deficit is estimated to be 3.48% Total Indebtedness of the state
of GSDP.
● For various developmental schemes and social
● For 2023-24, the central government has permitted a
upliftment works in the state, the state government
fiscal deficit of up to 3.5% of GSDP to states, of which
needs to take loans keeping in mind its limited
0.5% of GSDP will be available only upon carrying out
resources.
certain power sector reforms.
● State Total Indebtedness (Rs. in Crores)-
● As per the revised estimates, in 2022-23, the fiscal
deficit of the state is expected to be 4% of GSDP,
which is same as the budget estimates.

Year Market Small Saving Provident and Energy Bond Other * Total Indebtedness
Credit Pension Funds
2017-18 2,02,050.26 60,608.32 51,263.76 49,674.02 45,120.13 4,08,716.49 (29.6)
2018-19 2,35,356.93 55,736.67 54,907.14 49,674.02 49,528.48 4,45,203.24 (30.2)
2019-20 2,89,383.00 50,614.60 58,220.80 49,674.02 52,075.13 4,99,967.55 (29.6)
2020-21 3,54,683.00 45,492.53 59,283.21 43,331.16 61,299.56 5,64,089.46 (29.1)
2021-22 4,01,353.00 40,370.45 60,986.81 39,016.00 69,555.16 6,11,281.42 (34.9)
2022-23 4,66,003.00 35,248.33 62,690.41 34,700.85 67,510.80 6,66,153.39 (32.5)

● Others include loans from financial institutions, ● As per the recommendations made by the 14th
loans, deposits and advances from the Government Finance Commission, N. SSF It is continuously
of India and other liabilities. decreasing due to the end of the loan taking process
● The figures in brackets are shown relative to the by the state government.
Gross State Domestic Product. ● Provident and Pension Funds also contribute
● The economy of the state of Uttar Pradesh is appropriately to the state debt.
developing, due to which the state government ● With the implementation of the 12th Finance
collects loans from many sources. Commission from the financial year 2005-06, the loan
received from the Central Government was
discouraged by giving more importance to the market
loan, after which it has continuously decreased to the
level of only 4.6 percent. .
● It is known that the repayment period and interest
rates of loans received by states from different
sources vary according to the terms and conditions of
the loan.

Loan Limit and Loan Service

Sources of Credit ● The debt limit for the states is determined by the
● Market debt has the largest share in the State's Debt Government of India every year on the basis of the
Structure. recommendation of the Central Finance Commission.
● According to the revised estimates till the year 2021- ● For the last many years, the loan has been taken every
22, more than half of the total indebtedness i.e. 65.7 year by the state of Uttar Pradesh only under the
percent has been obtained from market loans only. prescribed limit.
● After this, the loan taken from the National Small ● The debt service of the state government has two
Savings Fund (NSSF) is about 6.60 percent. components-

ToppersNotes / 9614-828-828 17
 ○ Repayment of loans ● In this chart, revenue deficit, expenditure on salary,
○ Interest payment pension and interest and expenditure on debt
● In which there has been a continuous decrease in the service have been displayed as a percentage of total
last years. revenue receipts from the year 2013-14 to 2023-24.

goal, the state government is continuously making

Tax and Economic reforms
efforts for rapid industrialization.
● As the economy reaches further stages of ● In the past years, Investors Summit, two ground
development, the contribution of different segments breaking ceremonies, Pravasi Bharatiya Diwas were
of the state's economy changes. organised.
● The contribution of the the Primary Sector ● There has been continuous improvement in Ease of
continuously decreases and the contribution of Doing Business in the state and the state has been
Secondary and Tertiary Sector increases. According ranked among the achievers states.
to the quick estimate for the year 2021-22, the ● Eleventh Defense Expo organised in Lucknow –
growth rate of Gross State Domestic Product (GSDP) ○ On February 9, 2020
at constant prices has been 9.64 percent and at ○ More than 3 thousand representatives of
current prices 16.76 percent. Defense Sector from abroad and more than 10
● According to the quick estimate for the year 2021-22, thousand participants from the country
the growth rate of primary, secondary and tertiary participated in it.
sectors at constant prices has been 14.59 percent, ○ A conference of Defense Ministers of more than
10.32 percent, 6.53 percent respectively in the year 40 countries was organized, in which 23 MOUs
2021-22 and at prevailing prices it has been 16.16 were signed on behalf of the Defense Corridor of
percent, 14.90 percent, 14.02 percent respectively. . the State Government.
● According to the quick estimate for the year 2021-22, ○ Due to this expected investment of about Rs 50
the contribution of primary, secondary, tertiary thousand crore is expected in the State.
sectors in the year 2021-22 in GSVA at constant prices ● Global Invest Committee 2023 was held
will be 25.33, 26.74 and 47.93 percent respectively ● Single Window as Nivesh Mitra and Nivesh Sarathi
and at prevailing prices will be 28.44, 24.61 and 46.95 have been created.
percent respectively.
● According to the quick estimate for the year 2021-22, Speedy Justice and Law and Order
the state's per capita income at prevailing prices in ● It is very important to have a suitable environment to
terms of Net State Domestic Product will increase attract investors. Considering its importance, the
from Rs. 32002 in the year 2011-12 to Rs. 61374 and state government has established courts and
Rs. 70792 in the year 2020-21 and 2021-22 tribunals and appointed judges for speedy disposal of
respectively. legal cases.
● It has been decided to constitute 218 courts for
Capital Investment
speedy disposal of criminal cases prevalent under the
● The state government has set a target of creating at POCSO (Protection of Children from Sexual Offences)
least $ 1 trillion US dollar economy. To achieve this Act in the state.

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