From BIMARU to BEMISAAL: Uttar Pradesh Tops Revenue Surplus in India
Uttar Pradesh, once considered a 'BIMARU' (laggard) state, has now emerged as the top-performing state in India in terms of revenue surplus. According to the Comptroller and Auditor General (CAG) report for 2022–23, the state recorded a massive revenue surplus of ₹37,263 crore, making it number one among all Indian states.
Major Transformation Under Yogi Government
Under Chief Minister Yogi Adityanath, Uttar Pradesh has implemented strong reforms in revenue collection and management systems. As a result, the state's economic standing has significantly improved, even while levying one of the lowest petroleum taxes in the country.
Revenue Surplus States in 2022–23
According to the CAG report, 16 out of 28 Indian states had a revenue surplus. Uttar Pradesh topped the list, followed by:
- Gujarat – ₹19,865 crore
- Odisha – ₹19,456 crore
- Jharkhand – ₹13,564 crore
- Karnataka – ₹13,496 crore
- Chhattisgarh – ₹8,592 crore
- Telangana – ₹5,944 crore
- Uttarakhand – ₹5,310 crore
- Madhya Pradesh – ₹4,091 crore
- Goa – ₹2,399 crore
- Northeastern states: Arunachal Pradesh, Mizoram, Tripura, Sikkim, and Manipur
Revenue Deficit States and Grants
12 states were in revenue deficit with a combined loss of ₹2,22,648 crore. To bridge this, the Finance Commission provided ₹86,201 crore in grants (39% of the deficit).
Top grant recipients were:
- West Bengal – 15.76%
- Kerala – 15.28%
- Andhra Pradesh – 12.24%
- Himachal Pradesh – 10.88%
- Punjab – 9.60%
- Uttarakhand – 8.28%
- Assam – 5.67%
- Rajasthan – 5.64%
- Nagaland – 5.26%
- Tripura – 5.13%
Together, these ten states received 94% of the total revenue deficit grants.
States with Improved Tax Systems
The report also highlighted states with significant improvements in tax collection:
- Haryana – 80% of revenue generated internally
- Telangana
- Maharashtra
- Gujarat
- Tamil Nadu
- Goa
These states have strengthened their economies by enhancing their tax collection systems and reducing dependency on central grants.