Dehradun, NTI: Today, November 9, marks the Foundation Day of Uttarakhand, as the state enters its 25th year. Over the past 24 years, Uttarakhand has made significant strides in its economic journey, despite starting with a heavy debt burden inherited at the time of its formation. Here’s an in-depth look at the state’s financial progress through the years.
Inherited Debt and a Challenging Start
When the interim government was formed after the state’s creation, Dr. Ramesh Pokhriyal Nishank, the finance minister in 2001, presented Uttarakhand’s first budget. It included a proposed total expenditure of ₹4,505.75 crore and a revenue estimate of ₹3,244.71 crore, leaving a fiscal deficit of approximately ₹1,750 crore. The state began its financial journey with an overdraft and a significant inherited debt of around ₹4,500 crore.
Present Budget and Surplus Achievements
Twenty-three years later, on February 27, 2024, Finance Minister Premchand Agarwal presented an ₹89,000 crore budget in the Dehradun Assembly—marking a surplus budget without any fiscal deficit. However, Uttarakhand’s debt has now risen to ₹80,000 crore for the 2024-25 fiscal year. Notably, though, this debt increase has slowed significantly over the last five years, according to financial officials.
Uttarakhand’s Debt Progression
Since the state’s formation, Uttarakhand’s debt has steadily increased:
- 2001 : ₹4,500 crore (State Formation)
- 2020-21: ₹71,000 crore
- 2021-22: ₹77,000 crore
- 2022-23: ₹77,023 crore
- 2023-24: ₹78,450 crore
- 2024-25: ₹80,000 crore
Although debt has grown, officials consider this level manageable. Finance Secretary Dilip Jawalkar mentioned that the borrowing aligns with government regulations and is well within sustainable limits.
Economic Growth Milestones in the Last 24 Years
Over the past two decades, Uttarakhand has established itself as a unique presence among Indian states, excelling in various sectors despite geographical challenges. The state, with 67% of its area under forest cover and limited resources, has achieved substantial growth. Economically, socially, culturally, and in sectors such as tourism and religion, Uttarakhand has carved a distinguished path.
Financial Growth Insights from the Finance Secretary
Finance Secretary Dilip Jawalkar highlighted the state’s progress in infrastructure, income, and services. Uttarakhand’s GDP and per capita income have surged, with improvements in road connectivity, electricity access, and network coverage. The state now has 100% electrification in villages and an extensive road network reaching remote areas.
In conclusion, as Uttarakhand celebrates its 24th year, the state has made remarkable strides on the path of financial growth and development, underscoring its resilience and commitment to progress.
