National News
UP’s total outstanding debt shot up by nearly 39% in five years
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
Gujarat extends ban on tobacco-laced gutkha, pan masala for another year

Gandhinagar, Aug 31: Gujarat has extended its ban on the manufacture, storage, distribution and sale of gutkha and pan masala containing tobacco or nicotine for another year, with the renewed prohibition coming into effect from September 13, 2026, and remaining in force until September 12, 2027.
The Commissioner of Food Safety issued the notification on August 31, citing public health concerns and representations received from various Non-Governmental Organisations (NGOs).
The ban has been enforced in Gujarat since 2012 and will continue to cover such products irrespective of the name under which they are marketed.
The order also covers ingredients that are sold separately but are intended to be mixed together to prepare gutkha or pan masala containing tobacco or nicotine as the final product.
Authorities have warned that strict legal action will be taken against those found violating the prohibition.
According to the notification, research conducted by Tata Memorial Hospital, the Tata Institute of Fundamental Research and ‘HAMER’ has indicated that consumption of gutkha and pan masala is carcinogenic and substantially increases the risk of oral cancer.
The notification also refers to findings from the Global Adult Tobacco Survey (GATS), according to which 35 per cent of adults in India consume tobacco, while 21 per cent were found to use smokeless tobacco.
The state government said the decision to extend the prohibition was taken in view of the need to protect citizens’ health and following representations from NGOs.
The renewed order will, therefore, continue the restrictions that Gujarat has maintained for more than a decade.
The ban specifically targets gutkha and pan masala containing tobacco or nicotine, as well as separately sold components intended to circumvent the prohibition by being combined later.
Enforcement agencies have been directed to take action against manufacture, storage, distribution and sale of products covered by the notification.
The extension means the existing prohibition will remain in effect without a break, from September 13 this year through September 12, 2027.
Crime
Drunk Dial 112 driver hits cyclist, motorcycle in Bihar’s Muzaffarpur

Patna, Aug 31: A Dial 112 emergency vehicle driver was accused of driving under the influence of alcohol and hitting a cyclist and a motorcycle in Muzaffarpur’s Ramdayalu area on Monday.
The incident, which falls under the jurisdiction of Sadar Police Station, triggered anger among local residents.
Police subsequently took the driver, identified as Santosh Kumar, into custody.
According to police, the detained driver underwent a medical examination, which confirmed alcohol consumption.
Further legal action is being taken in the matter. Meanwhile, the injured cyclist has submitted an application at Sadar Police Station seeking registration of an FIR.
According to preliminary information, Santosh Kumar was driving the Dial 112 vehicle through the Ramdayalu area when it allegedly first struck a cyclist.
The cyclist, Shatrughan Rai, a resident of Baramatpur under the Sadar police station area, sustained serious injuries, including injuries to both legs. The vehicle subsequently collided with a motorcycle.
The motorcyclist, identified as Manish Kumar of Chak Chameli village under the Hajipur Sadar police station area of Vaishali district, escaped with minor injuries, but his motorcycle was badly damaged.
The incident led to a gathering of local residents, who raised an alarm and confronted the driver over allegations of drunk driving.
Locals informed the police, following which a Sadar Police team reached the spot and took Santosh Kumar into custody. Manish Kumar said he was travelling from his home in Hajipur to Muzaffarpur when he witnessed the Dial 112 vehicle hit the cyclist.
He said the emergency vehicle then struck his motorcycle with considerable force, causing extensive damage. Manish further alleged that when he and others confronted the driver following the accident, the driver used abusive language.
The situation was subsequently brought under control after police reached the spot and took the driver to the police station.
Muzaffarpur SSP Kantesh Kumar Mishra said the incident had come to the police’s notice and that the accused driver was being questioned.
He said further action would be taken in accordance with the law after completion of the investigation and that steps would be taken to seek judicial custody of the accused.
Crime
3-year-old nursery student sexually assaulted at Delhi school; bus driver arrested

New Delhi, Aug 31: A case involving the sexual assault of a three-year-old nursery student at a private school in Delhi Bawana has come to light. Police have arrested a school bus driver in connection with the incident, officials said on Monday.
The accused, identified as Vikas, had been working as a bus driver at the school for around eight months. According to police, he allegedly befriended the child by offering her chocolates and subsequently sexually abused her on multiple occasions.
Police arrested Vikas from the school premises after the child’s identity and allegations were established during the investigation.
The case came to light on the night of August 19, when the child’s family noticed injury marks on her body and became concerned about her condition.
When the child’s mother questioned her about what had happened, the girl reportedly spoke about a “bad uncle” at her school who used to give her chocolates. As the three-year-old was unable to identify the man by name, the family approached the school administration and sought its help in finding out who the person was.
On August 24, the child was shown photographs of school staff and CCTV footage from the school premises as part of efforts to identify the person she had mentioned. Police said the girl identified Vikas as the man she had referred to as the “bad uncle”.
Following the identification, the school informed the police about the matter. An FIR was subsequently registered under the relevant provisions of the Protection of Children from Sexual Offences (POCSO) Act, following which the accused school bus driver was arrested.
According to the allegations being investigated by police, the accused followed the girl when she was going towards the bathroom. He allegedly offered her chocolates and then touched her inappropriately under the stairs of the school.
During the investigation, police also seized the accused’s mobile phone. Officials said the device contained several videos showing him feeding chocolates to young children.
Police are now working to identify the children seen in those videos. The children are also being counselled as part of the ongoing investigation and to ensure their safety and well-being.
Investigators have also collected and seized CCTV footage from cameras installed at different locations on the school premises. The footage is being examined to establish the sequence of events and determine whether there were any other instances involving the accused.
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