PRS · Comptroller & Auditor General ·

CAG Observations on Uttar Pradesh Finances in 2020-21

Distilled Policy Brief

  • The state recorded a revenue deficit of Rs 2,367 crore in 2020‑21, after 14 consecutive years of revenue surplus since 2006‑07.

🎯 Prelims High-Yield Examination Points

Uttar Pradesh’s 2020‑21 GSDP grew 1.05%, revenue deficit Rs 2,367 crore, fiscal deficit 3.20% of GSDP, debt 32.77% of GSDP.

⚖️ Mains Analytical & Syllabus Linkages

Discuss the fiscal health of Uttar Pradesh in 2020‑21, focusing on revenue deficit, fiscal deficit, debt levels, and the impact of the June 2020 ordinance.

🎯 UPSC Prelims Practice Drill

Economy

According to the CAG's observations on Uttar Pradesh finances for FY 2020‑21, which of the following statements is correct?

  • [A] The state recorded a revenue surplus of Rs 2,367 crore, ending a 14‑year streak of deficits.
  • [B] Revenue deficit of Rs 2,367 crore occurred after 14 consecutive years of revenue surplus since 2006‑07.
  • [C] Revenue deficit is defined as excess of revenue receipts over revenue expenditure.
  • [D] The state’s total spending exceeded the budget estimate by 26%.
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [B] Revenue deficit of Rs 2,367 crore occurred after 14 consecutive years of revenue surplus since 2006‑07.

The CAG report states that Uttar Pradesh posted a revenue deficit of Rs 2,367 crore in 2020‑21 after 14 years of continuous revenue surplus since 2006‑07. The other options misstate the surplus/deficit direction, the definition of revenue deficit, or the spending trend.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.