Context:
Uttar Pradesh’s urban local bodies saw a 44.5% increase in revenue, totaling Rs 5,568 crore.
- The 17 major municipal corporations under the Urban Development Department collectively generated Rs 4,586 crore, surpassing their target of Rs 4,140 crore by 11%.
- The Uttar Pradesh (UP) government has projected a 16% increase in tax revenue for FY26, expecting a rise of ₹75,000 crore to ₹5.50 trillion, up from ₹4.75 trillion in FY25.
- This growth is higher than the 11% increase estimated by the Centre in the Union Budget for FY26, indicating a rise in economic activity.
- The UP-Budget estimates total receipts of ₹7.79 trillion, with ₹6.62 trillion in revenue receipts and ₹1.16 trillion in capital receipts.
- The state’s capital expenditure (CapEx) increased to 19.3% of total expenditure in FY23, up from 14.8%.
- Niti Aayog has ranked UP among the front runners in the fiscal health index of states.
- The growth of the tourism sector has positively impacted hospitality, real estate, transport, and logistics, boosting investor sentiment and leading to higher tax collection.
Key Contributors
- Lucknow made the highest contribution to the total revenue of all 17 municipal corporations.
- Kanpur contributed Rs 720.62 crore, while Ghaziabad contributed Rs 609.89 crore.
Revenue Collection
- Tax revenue increased by 28%, from Rs 2,235.48 crore to Rs 2,870.4 crore.
- Non-tax revenue saw a remarkable 90% increase, from Rs 904.73 crore to Rs 1,715.27 crore.
- Lucknow alone contributed Rs 1,355.32 crore to the total revenue
- Over the past four years, the revenue of urban local bodies has increased by 123%, from Rs 2,494.42 crore in 2021-22 to Rs 5,568 crore in 2024-25.
Performance of Districts
- Mathura saw a 106% growth, Jhansi grew by 85%, and Ghaziabad achieved a 72% growth.
- Among municipal corporations, Ghaziabad achieved an impressive 336% growth.
- Moradabad was the weakest performer with a 29% decline in non-tax revenue.