Particle.news
Download on the App Store

Uttar Pradesh Debt Set to Top ₹9 Lakh Crore in FY26, Says State Finance Commission

The commission portrays the rise as tied to infrastructure investment, urging transparent use alongside clear repayment plans to keep borrowing productive.

Overview

  • Outstanding liabilities are projected at about ₹9.03 lakh crore in 2025–26, up from roughly ₹7.76 lakh crore in 2023–24, according to the commission’s latest report.
  • The current-year per‑capita loan burden is estimated at around ₹37,500 for Uttar Pradesh residents.
  • The fiscal deficit for FY 2025–26 is pegged at ₹91,400 crore, or 2.97% of GSDP, staying within the 3% ceiling under fiscal rules.
  • The report links higher borrowing to accelerated industrial and infrastructure spending, noting the state’s budget has nearly doubled over five years.
  • Officials emphasize that financial discipline is being maintained, with the commission stressing transparent expenditure and explicit repayment strategies.