Uttar Pradesh’s own tax collection is estimated to touch Rs 2.95 trillion in the financial year 2025-26,
This represents a hike of roughly Rs 39,000 crore from Rs 2.56 trillion projected in the UP Annual Budget 2024-25.
The higher tax revenue is indicative of robust collections on the back of rising economic activities and expansion of the formal economy in UP.
Meanwhile, the Yogi Adityanath government has projected a 16 percent jump in consolidated tax revenue in 2025-26 per the UP Annual Budget.
Against the projected tax kitty of Rs 4.75 trillion comprising both own tax and UP’s share in 2024-25, the Yogi government has estimated tax collection to touch Rs 5.50 trillion in 2025-26.
UP’s share in central taxes is estimated at Rs 2.55 trillion in 2025-26 against Rs 2.18 trillion in 2024-25.
Recently, UP chief minister Yogi Adityanath said the state had balanced its income and expenditure matrices to achieve fiscal discipline, but at the same time hiking capex for growth.
UP Annual Budget 2025-26 has estimates total receipts of Rs 7.79 trillion, including revenue receipts of Rs 6.62 trillion and capital receipts of Rs 1.16 trillion.
The total receipts include tax and non-tax revenues apart from market borrowings and central grants.
Federal think tank Niti Aayog has ranked UP among the front runners in the fiscal health index of Indian states.
UP Annual Budget 2025-26 has burgeoned 9.8 percent at over Rs 8.08 trillion compared to the Annual Budget 2024-25 of Rs 7.36 trillion tabled last year.
UP’s fiscal deficit is projected at Rs 91,400 crore, which is 2.97 per cent of the Gross State Domestic Product (GSDP), thus taming it below the Fiscal Responsibility and Budget Management (FRBM) norm of less than 3 percent.