Uttarakhand’s economy has taken a long leap in 24 years, but the ‘debt problem’ remains

Today on 9th November, the state of Uttarakhand is celebrating its foundation day. Today, Uttarakhand has completed 24 years of its establishment and has entered its 25th year. How has been the financial journey of Uttarakhand in the last 24 years and how Uttarakhand has taken a long leap in the field of economy despite carrying the burden of inherited debt, know in this special report.

Debt was inherited: After the formation of Uttarakhand state, when Dr. Ramesh Pokhriyal Nishank, as the Finance Minister in the interim government, presented the first budget of Uttarakhand state in 2001, the total expenditure in it was proposed to be 4,505.75 crores (4 thousand 505 crores 75 lakhs) and revenue receipt 3,244.71 crores (3 thousand 244 crores 71 lakhs). That is, Uttarakhand inherited a deficit of 1,750 crores (1 thousand 750 crores). In this way, the state of Uttarakhand started its financial journey with an overdraft. Not only this, Uttarakhand also had to bear a huge debt of Rs 4,500 crore as inheritance.

However, after this journey of 23-24 years, if we talk about this time’s budget session, then as Finance Minister, Premchand Aggarwal presented a budget of Rs 89,000 crore in the Dehradun Legislative Assembly on 27 February 2024. This was a surplus budget. That is, there was no financial deficit in it. On the other hand, if we talk about debt, it has now increased to Rs 80,000 crore in this financial year. However, this is the lowest rate of increase in debt in the last 5 years.

Uttarakhand’s debt at the time of state formation and in the last 5 years

• Debt on Uttarakhand at the time of state formation – 4,500 crores
• Debt on Uttarakhand in the year 2020-21 – 71,000 crores
• Debt on Uttarakhand in the year 2021-22 – 77,000 crores
• Debt on Uttarakhand in the year 2022-23 – 77,023 crores
• Debt on Uttarakhand in the year 2023-24 – 78,450 crores
• Debt on Uttarakhand in the year 2024-25 – 80,000 crores

In this way, while on the one hand the state of Uttarakhand continued to strengthen on the development and economic front, the debt also kept increasing. However, the government and finance officials believe that this figure of debt is absolutely normal. As per the rules of the government, we have taken as much loan as can be taken, rather we are taking even less loan from the market.

New dimensions of economy established in the last 24 years: If seen, the state of Uttarakhand has created a distinct identity among other states of the country in the last 24 years. In many sectors, the state of Uttarakhand has been leading other big states. The state has made a distinct position on every front, be it economic, social, cultural, tourism or religious. Uttarakhand is a Himalayan state with difficult geographical conditions. Apart from this, 67 percent of the state’s area is surrounded by forests. The state has very few resources. With these few resources, the state has developed in a very short time.

What the Finance Secretary said: Finance Secretary Dilip Javalkar says that today we find ourselves on the path of progress. We have achieved 100 percent of our goal of becoming an independent state. The GDP of the state has grown a lot. There has been a significant increase in per capita income as well. We have been leading in the country in single digit. He says that today the road network, availability of electricity and network have flourished. As of today, we have electricity in 100 percent villages and everywhere. Apart from this, the network of roads has also reached all the villages. Our state is progressing very far in a disciplined manner. We are also moving ahead from a financial point of view.

Economic achievements of Uttarakhand in 24 years:

• Uttarakhand is number one in the ranking of NITI Aayog under Sustainable Development Goals
• Uttarakhand collected record tax in GST collection
• The state’s per capita income is far ahead of other states
• Development in road, energy, water and other sectors
• Favourable industrial policy and tax benefits led to a significant increase in capital investment here
• MSME sector plays an important role in the economic and social development of the state
• Record number of pilgrims arriving in Chardham Yatra
• UCC, conversion, anti-copying and riot compensation laws made

We are entering a strong Uttarakhand in the 25th year – Chief Minister

CM Pushkar Singh Dhami says that Uttarakhand has achieved many achievements in 24 years. While the per capita income in Uttarakhand has increased, the unemployment rate has also decreased in Uttarakhand. Chief Minister Pushkar Singh Dhami is of the opinion that the state has progressed very fast in the journey of 24 years. Compared to the early days of the state, whether it is per capita income, roads or electricity, transport, industry or other sectors, we have developed in all areas. We have moved forward. This is like a capital for us and we have to take Uttarakhand further ahead.