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6mo ago

Budget Sets 4.3% Deficit, Ramps Up Capex as UP Unveils First Economic Survey

Uttar Pradesh underscores investment-led growth with its maiden Economic Survey.

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The finance minister said two committees formed on administrative reforms in the previous budget had submitted their inputs and that Niti Aayog was working on it.
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Overview

  • The Union Budget targets a fiscal deficit of 4.3% of GDP and raises central capital spending, with effective capex projected to jump 22% to about ₹17.1 lakh crore in 2026–27.
  • Policy priorities span semiconductors, bio‑pharma, rare earths, electronics and AI, alongside big-ticket infrastructure including seven high‑speed rail corridors and expanded national waterways.
  • Allocations for Jammu & Kashmir total ₹43,290 crore, including a sharper outlay for J&K Police at ₹9,925 crore under the Union Home Ministry.
  • Reactions diverge, with ministers calling the plan inclusive and execution‑focused, while P. Chidambaram and other economists criticize it as overly cautious on jobs, growth and private investment.
  • Uttar Pradesh’s first Economic Survey pegs GSDP at ₹30.25 lakh crore in 2024–25 with a projection of ₹36 lakh crore in 2025–26, notes a budget of about ₹8.33 lakh crore and a record health allocation of ₹46,728.48 crore, and cites an investment pipeline exceeding ₹50 lakh crore.