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UP’s total outstanding debt shot up by nearly 39% in five years

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The Yogi Adityanath government in Uttar Pradesh has been borrowing so heavily from the market that its total outstanding debt has shot up by almost 39 per cent in five years.

However, spending on education declined while spending on health increased only marginally during this period.

What is even more surprising is the fact that in four out of five years, the state government was unable to spend even the full budgeted amount, leading to a revenue surplus.

The full support given to the Yogi Adityanath government by the Narendra Modi government — the so-called ‘double engine’ advantage — also does not seem to have helped, either in terms of finances or in planning.

According to the latest data available with the Reserve Bank of India, which compiles state government finances, the UP government has outstanding liabilities worth as much as Rs 6.5 lakh crore, as estimated in the state Budget for 2021-22.

This is 38.3 per cent more than the Rs 4.7 lakh crore debt it inherited when it took over in 2017.

The bulk of this debt mountain is owed to financial institutions, such as banks. These are called market borrowings and are taken at hefty rates of interest.

According to sources in the state finance department, a report by the Comptroller and Auditor General (CAG) on UP government’s finances, released last month, pointed out that of the total public debt at the end of 2019-20, Rs 1.99 lakh crore (or 47.7 per cent of the total) would be payable after seven years.

The CAG report referred to earlier made a shocking revelation.

The state government transferred a princely sum of Rs 71,000 crore from a sinking fund illegitimately to its “non-tax revenue” head in its books in March 2020. By rules, this should have been invested elsewhere.

The CAG roundly criticised this brazen violation, recommending that “the transfers out of the fund (Sinking Fund) are not to be treated as Revenue Receipts and the amount equivalent to loan repaid should be transferred from Sinking Fund to Major Head 8680 (Miscellaneous Government Account) on redemption of debt”.

The effect of this ‘creative’ book-keeping was that revenue receipts were boosted in the books only, there was no cash actually transferred. This is what caused the next year’s revenue surplus.

It is a common feature for some states to end the year with huge unspent amounts from their budgetary allocations. Poor and backward states are particularly prone to this aberrant thinking. And UP is no exception.

Under Chief Minister Yogi Adityanath’s leadership, four of the five years have seen a revenue surplus adding up to a huge Rs 1.32 lakh crore.

The figure given for 2021-22 is just estimated, presented in the Budget, and the actual amount may be larger. The deficit would have been even bigger but for the illegitimate transfer of sinking fund money to non-tax revenue accounts.

The year 2020-21 was the first year of the Covid pandemic and some extra spending took place. So, the state government ended up actually spending all of its allocated funds, running a small deficit of Rs 13,161 crore.

Despite borrowing Rs 1.8 lakh crore in five years, the state government has ended its term with an accumulated revenue surplus, i.e., unspent funds of Rs 1.32 lakh crore, which indicates bad planning.

Sources said that spending on two crucial sectors – education and health – was important but as a proportion of total revenue expenditure, the share spent on education declined from about 14.8 per cent in 2017-18 to 12.5 per cent in the budget estimates (BE) for the current financial year.

In 2020-21, when students of the state were struggling to keep up with their studies during the pandemic with schools/colleges and hostels closed and online mode was the dominant way of teaching, the state government saved a lot of money when actually more spending was needed to compensate for academic losses being suffered by the students.

In fact, teachers were not paid salaries, staff were denied wages, and mid-day meals were stopped.

Now, with the crucial Assembly elections looming, the government is busy distributing smartphones and tablets.
Even more disturbing is the minuscule increase in the share of health expenditure in total revenue expenditure — from 5.3 per cent in 2017-18 to 5.9 per cent in 2021-22 (BE) — at a time when the pandemic was at its peak.

Reports based on official data show that the healthcare system in UP remained inadequate to deal with the pandemic. All this would have been avoided if more funds had been allocated and applied by the state government.

National News

India is eternally grateful to armed forces: PM Modi visits Adampur Airbase after ‘Operation Sindoor’

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New Delhi, May 13: Prime Minister Narendra Modi on Tuesday morning visited the Adampur Airbase in Punjab to meet Indian Air Force personnel and express the nation’s gratitude for their courage and fearlessness in defending the country.

His visit comes just days after India and Pakistan agreed to a ceasefire following the successful execution of ‘Operation Sindoor’, a major anti-terror operation conducted by Indian forces targeting high-value terror hubs in Pakistan and Pakistan-occupied-Kashmir (PoK).

At the base, the Prime Minister interacted with the soldiers, praising their bravery and valour.

Soldiers present at the interaction described the visit as a morale booster, noting how the Prime Minister’s presence uplifted the spirit of the troops, according to sources.

The soldiers were seen smiling in their combat uniforms, a symbol of their constant readiness.

Sharing his experience on X, PM Modi wrote, “Earlier this morning, I went to AFS Adampur and met our brave air warriors and soldiers. It was a very special experience to be with those who epitomise courage, determination and fearlessness. India is eternally grateful to our armed forces for everything they do for our nation.”

Adampur Airbase was among the targets of Pakistan’s retaliatory attempt during the night of May 9 and 10, following India’s strike on terrorist infrastructure across the border.

Pakistani drones and missiles were intercepted and neutralised by India’s air defence systems, showcasing the preparedness and effectiveness of the Indian armed forces.

The visit also coincided with PM Modi’s recent address to the nation where he commended the armed forces for the execution of ‘Operation Sindoor’, stating that it had achieved its objectives with precision and resolve.

“I salute the armed forces, Intelligence agencies and scientists for their grit that helped ‘Operation Sindoor’ achieve its objective,” the Prime Minister said.

Reaffirming India’s new doctrine in its fight against terrorism, PM Modi had said that ‘Operation Sindoor’ was dedicated to the nation’s collective spirit, particularly to the women of India, whose safety and honour were at the heart of the mission.

He underlined that the operation had sent a clear message to terrorist organisations and their backers — that any attack on India or its citizens would be met with decisive and powerful retribution.

“The world has seen India’s capability and it is clear terrorists will no longer be spared,” he asserted.

The Prime Minister stressed that ‘Operation Sindoor’ marked a new and unwavering chapter in India’s counter-terrorism strategy — one that is relentless, precise, and uncompromising.

He emphasised that India’s military carried out highly targeted strikes on terrorist hideouts in Pakistan, reinforcing the country’s resolve to safeguard its citizens and national values.

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Crime

15 labourers die after consuming spurious liquor in Amritsar

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Chandigarh, May 13: At least 15 men have died after allegedly consuming spurious liquor in four villages of the Majitha area in Amritsar district, officials said on Tuesday.

The deceased, mostly labourers working in brick kilns, include residents of Bhangali, Marari Kalan Therwal and Patalpuri villages.

Superintendent of Police (Amritsar Rural), Maninder Singh said the main accused Prabhjit Singh has been arrested and he turned out to be the mastermind behind supplying the spurious liquor.

A First Information Report (FIR) was on Tuesday registered under Section 105 of the BNS and 61-A of the Excise Act.

The others arrested were Kulbir Singh, alias Jaggu, a brother of the main accused Prabhjit Singh, Sahib Singh, alias Sarai, Gurjant Singh and Ninder Kaur, wife of Jeeta.

The Investigation Police Officer told the media that preliminary investigation indicated that “all took liquor from a single source on Sunday evening. Some of them died on Monday and locals cremated them without informing the police. We received information about the deaths due to liquor late in the evening (Monday) and initiated an investigation.”

A spokesperson for the government said an investigation of the entire spurious liquor network is on.

In March 2024, as many as 24 people had died in Sangrur due to spurious liquor. Earlier in 2020, more than 100 people died across Punjab in one of the deadliest illicit liquor tragedies.

As the war against drugs ‘Yudh Nashian Virudh’ to eradicate the drug menace from the state completed 72 days on Monday, Punjab Police registered 6,280 FIRs and arrested 10,444 drug smugglers.

Notably, Chief Minister Bhagwant Singh Mann had asked the Commissioners of Police, Deputy Commissioners and Senior Superintendent of Police to make Punjab a drug free state.

Since the launch of the ‘Yudh Nashian Virudh’ campaign, Punjab Police under the directions of Director General of Police (DGP) Gaurav Yadav has been conducting different operations including cordon and search operations, night domination and raids at drug hotspots across the state.

Special Director General of Police (Special DGP) Law and Order, Arpit Shukla, who has been monitoring these operations, on Monday said that police teams have recovered 398 kg heroin, 186 kg opium, 117 quintals poppy husk, 8 kg charas, 135 kg ganja, 2.5 kg ICE, 1.2 kg cocaine, 23.57 lakh intoxicant pills/tablets and Rs 8.58 crore drug money from their possession.

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National News

India to brief foreign Defence Attaches on ‘Operation Sindoor’ today

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New Delhi, May 13: India will brief Defence Attaches (DAs) from various countries based in New Delhi on Tuesday at 3:30 p.m., providing them with technical details of ‘Operation Sindoor’, the country’s recent anti-terror military offensive.

The Indian armed forces are set to share critical insights and operational data, including the performance of the indigenous air defence systems and outcomes of the strike missions carried out between May 7 and May 10.

Sources confirmed that the session will cover a wide array of developments, including the destruction of Chinese and Turkish-made drones and PL-15 missiles by India’s air defence forces, preventing any breach into Indian airspace.

The move comes a day after Director General of Military Operations (DGMO) Lt Gen Rajiv Ghai addressed the media, stating that the budgetary and policy support received by the armed forces over the past decade enabled the creation of a robust multi-layered air defence grid.

He said the system proved to be a decisive shield during Pakistan’s retaliatory aerial attacks on May 9 and 10. “Our battle-proven systems performed exceptionally, and the indigenous Akash missile system played a critical role,” Lt Gen Ghai noted.

The briefing to the Defence Attaches will also include details of a hotline conversation that took place on Monday evening around 5 p.m. between the Indian and Pakistani DGMOs.

Lt Gen Ghai and his Pakistani counterpart, Maj Gen Kashif Abdullah, reportedly discussed methods to restore calm along the Line of Control and reiterated commitments to the ceasefire understanding reached after the Indian operation halted at Pakistan’s request on May 10.

Official sources said that Pakistan conveyed it would not escalate the conflict and expressed willingness to adhere to the ceasefire agreement. The hotline exchange between the two military leaders also included discussions on maintaining restraint and monitoring the situation moving forward.

Meanwhile, Prime Minister Narendra Modi on Monday addressed the nation for the first time following the understanding that ended the intense military exchanges.

He reiterated India’s hardline stance against Pakistan, stating unequivocally that New Delhi will not hold any dialogue with Islamabad except on issues related to terrorism and Pakistan-occupied-Kashmir (PoK).

“The Kashmir issue cannot be viewed in isolation from Pakistan’s continuous export of terrorism,” the Prime Minister said.

He strongly criticised Pakistan’s military and government for protecting and promoting terror outfits, warning that such support could bring about their eventual downfall.

PM Modi’s remarks also come amid reports that Pakistan attached certain conditions to the ceasefire, including a proposal to revive the Indus Waters Treaty, which India had suspended as a non-military strategic pressure tactic.

However, India has maintained that talks, if any, will remain confined strictly to terrorism and PoK.

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