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.

Image

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.