Uttar Pradesh
UP Emerges as Leading Revenue Surplus State
- 22 Sep 2025
- 2 min read
Why in News?
The Comptroller and Auditor-General of India (CAG) decadal study on state finances reveals that 16 states are in revenue surplus, with Uttar Pradesh leading the pack.
Key Points
- Revenue Surplus States: The CAG report reveals that 16 states reported a revenue surplus in the fiscal year 2023, marking a significant turnaround for states once considered economically weaker.
- Leading the charge is Uttar Pradesh, with a surplus of ₹37,000 crore, a stark contrast to its previous standing as part of the BIMARU states.
- BIMARU is an acronym for Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh, a grouping of states that have historically lagged in economic and social indicators.
- Leading the charge is Uttar Pradesh, with a surplus of ₹37,000 crore, a stark contrast to its previous standing as part of the BIMARU states.
- Revenue Deficit States: Conversely, at least 12 states were found to be in revenue deficit in 2022-23, indicating significant fiscal distress.
- States like Andhra Pradesh, Tamil Nadu, and Rajasthan reported the highest deficits, pointing to a growing reliance on central grants.
- States Relying on Central Grants: Several states are heavily dependent on central financial support, with West Bengal receiving the largest share of 16% in FY 2023.
- These grants help bridge the gap between their revenue receipts and expenditure.
- Revenue from Own Sources: Some states have successfully boosted their revenue generation through both tax and non-tax means.
- Haryana leads with over 80% of its revenue coming from its own sources, followed by Telangana and Maharashtra with over 70% and 60% respectively.
- State's Own Tax Revenue (SOTR): The CAG report also highlights the reliance of certain states on States' Own Tax Revenue (SOTR), with six states (Haryana, Maharashtra, Telangana, Karnataka, Gujarat, and Tamil Nadu) deriving over 60% of their revenue from SOTR.
- Low SOTR States: On the other hand, some northeastern states and smaller regions like Arunachal, Manipur, Nagaland, and Sikkim report very low SOTR, with contributions from their own tax revenue falling below 20%.
