{"id":354381,"date":"2026-01-19T13:08:54","date_gmt":"2026-01-19T07:38:54","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=354381"},"modified":"2026-01-19T13:08:54","modified_gmt":"2026-01-19T07:38:54","slug":"public-finance-and-fiscal-policy-tax-and-economic-reforms-one-district-one-product-policy-of-up-government","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/public-finance-and-fiscal-policy-tax-and-economic-reforms-one-district-one-product-policy-of-up-government\/","title":{"rendered":"[UPPSC-UP Special Syllabus Decoded] Public Finance and Fiscal Policy, Tax and Economic Reforms, One District One Product Policy of UP Government"},"content":{"rendered":"<table style=\"border-collapse: collapse;width: 100%\">\n<tbody>\n<tr>\n<td style=\"width: 100%\"><em><strong>This post is part of our UP Special (Economy) Syllabus Decode with Focused Themes. It is the intiative of ForumIas to help the students prepare for UPPSC Mains.\u00a0<a href=\"https:\/\/forumias.com\/blog\/uppsc-syllabus-decode\/\" target=\"_blank\" rel=\"noopener\">Click Here<\/a>\u00a0to view other articles related to our initiative.<\/strong><\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;width: 100%\">\n<tbody>\n<tr>\n<td style=\"width: 100%;text-align: center\"><strong>Table of Content<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 100%\"><a href=\"#t1\">Public Finance and Fiscal Policy of Uttar Pradesh<\/a><br \/>\n<a href=\"#t2\">Tax Reforms in Uttar Pradesh<\/a><br \/>\n<a href=\"#t3\">Economic Reforms in Uttar Pradesh<\/a><br \/>\n<a href=\"#t4\">One District One Product (ODOP) Policy<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Public Finance, Economic Reforms &amp; ODOP Policy: <\/strong><\/p>\n<ol>\n<li><strong> <a id=\"t1\"><\/a>Public Finance and Fiscal Policy of Uttar Pradesh<\/strong><\/li>\n<\/ol>\n<p><strong>Trend:<\/strong> Analytical questions on <strong>&#8220;Fiscal Health,&#8221;<\/strong> <strong>&#8220;Capital Expenditure (Capex) Push,&#8221;<\/strong> and <strong>&#8220;Deficit Management.&#8221;<\/strong><\/p>\n<p><strong>A. Public Finance Framework<\/strong><\/p>\n<ul>\n<li><strong>Budget 2025-26 Snapshot:<\/strong>\n<ul>\n<li><strong>Budget Size:<\/strong> A historic <strong>\u20b98.08 Lakh Crore<\/strong>, reflecting an expansionary fiscal stance to fuel the $1 Trillion economy goal.<\/li>\n<li><strong>Expenditure Composition:<\/strong> A strategic shift with <strong>~22% allocated to Capital Expenditure<\/strong> (Capex) for asset creation (Expressways, Metro, Power plants) versus Revenue Expenditure (Salaries\/Pensions).<\/li>\n<li><strong>Revenue Surplus:<\/strong> UP continues to be a <strong>Revenue Surplus state<\/strong> (projected at <strong>2.6% of GSDP<\/strong> for 2025-26), indicating that the state earns more than it spends on day-to-day operations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>B. Fiscal Policy &amp; Discipline<\/strong><\/p>\n<ul>\n<li><strong>Fiscal Deficit:<\/strong> Targeted at <strong>2.97% of GSDP<\/strong> (approx. \u20b991,400 Crore), strictly adhering to the <strong>FRBM Act<\/strong> limit of 3.5% set by the 16th Finance Commission.<\/li>\n<li><strong>Debt Management:<\/strong>\n<ul>\n<li><strong>Debt-to-GSDP Ratio:<\/strong> Managed at <strong>~30%<\/strong>, which is sustainable compared to debt-stressed states.<\/li>\n<li><strong>Green Bonds:<\/strong> UP\u2019s initiative to raise capital via Municipal Bonds (e.g., Ghaziabad\/Lucknow Municipal Corporation) for sustainable infrastructure.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Current Affairs Linkage :<\/strong><\/p>\n<ul>\n<li><strong>NITI Aayog Fiscal Health Index:<\/strong> UP was categorized as a <strong>&#8220;Front Runner&#8221;<\/strong> in fiscal management in 2025 due to its consistent revenue surplus and aggressive capex deployment.<\/li>\n<li><strong>16th Finance Commission:<\/strong> In its 2025 memorandum, UP demanded a revision in the &#8220;Tax Devolution Formula,&#8221; arguing that its <strong>Population (19.98% of India)<\/strong> and <strong>Fiscal Discipline<\/strong> should be rewarded with a higher share than the current 17.9%.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><strong> <a id=\"t2\"><\/a>Tax Reforms in Uttar Pradesh<\/strong><\/li>\n<\/ol>\n<p><strong>Trend:<\/strong> Focus on <strong>&#8220;GST Efficiency,&#8221;<\/strong> <strong>&#8220;Tax Base Widening,&#8221;<\/strong> and <strong>&#8220;Technology in Taxation.&#8221;<\/strong><\/p>\n<p><strong>A. Goods and Services Tax (GST) Administration<\/strong><\/p>\n<ul>\n<li><strong>Collection Trends:<\/strong> UP consistently ranks as the <strong>second-highest GST collector<\/strong> among states (non-coastal), recording an <strong>11-12% YoY growth<\/strong> in collections (July 2025 data).<\/li>\n<li><strong>Technological Interventions:<\/strong>\n<ul>\n<li><strong>AI &amp; Big Data:<\/strong> Use of &#8220;Project Bow-Web&#8221; (or similar state analytic tools) to detect tax evasion by matching E-Way Bills with FASTag data.<\/li>\n<li><strong>Registration Drives:<\/strong> Special campaigns to register MSMEs and traders to widen the tax net.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>B. State Excise &amp; Non-Tax Revenue<\/strong><\/p>\n<ul>\n<li><strong>Excise Policy 2025-26:<\/strong>\n<ul>\n<li><strong>Reforms:<\/strong> Introduction of <strong>Track &amp; Trace<\/strong> systems using QR codes on liquor bottles to prevent leakage.<\/li>\n<li><strong>Revenue:<\/strong> State Excise remains the second-largest own-tax revenue source.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Mining Reforms:<\/strong> Shift to <strong>E-Auction<\/strong> for sand\/morrum mining leases has curbed the &#8220;Mining Mafia&#8221; and boosted non-tax revenue by <strong>25%<\/strong> in 2024-25.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong> <a id=\"t3\"><\/a>Economic Reforms in Uttar Pradesh<\/strong><\/li>\n<\/ol>\n<p><strong>Trend:<\/strong> Shift from &#8220;Red Tape&#8221; to <strong>&#8220;Red Carpet&#8221;<\/strong> via <strong>&#8220;Policy-Driven Governance.&#8221;<\/strong><\/p>\n<p><strong>A. Ease of Doing Business (EoDB)<\/strong><\/p>\n<ul>\n<li><strong>Nivesh Mitra 2.0:<\/strong> Integration of <strong>45+ departments<\/strong> for single-window clearances; reduced average clearance time from weeks to days.<\/li>\n<li><strong>Investment Policies :<\/strong>\n<ul>\n<li><strong>FDI Policy 2025:<\/strong> A pioneering policy offering <strong>&#8220;Front-End Land Subsidy&#8221;<\/strong> (up to 80%) and capital interest subvention for Fortune 500 companies.<\/li>\n<li><strong>Semiconductor Policy 2024:<\/strong> Incentivizing high-tech manufacturing with a <strong>50% capital subsidy top-up<\/strong> (State + Center).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>B. Financial Inclusion &amp; Banking Reforms<\/strong><\/p>\n<ul>\n<li><strong>BC Sakhi Yojana:<\/strong>\n<ul>\n<li><strong>Reform:<\/strong> Deployment of 58,000+ women as <strong>Banking Correspondent Sakhis<\/strong> in Gram Panchayats, effectively digitizing the rural cash economy.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Family ID (One Family One Identity):<\/strong>\n<ul>\n<li><strong>Concept:<\/strong> A unique 12-digit ID for every family to map benefits.<\/li>\n<li><strong>Impact:<\/strong> In 2025, this database enabled the <strong>auto-identification of 1.5 Lakh new pensioners<\/strong> who were previously excluded due to lack of documentation.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><strong> <a id=\"t4\"><\/a>One District One Product (ODOP) Policy<\/strong><\/li>\n<\/ol>\n<p><strong>Trend:<\/strong> Evolution from &#8220;Promotion&#8221; to <strong>&#8220;ODOP 2.0 (Exports &amp; Unity Malls).&#8221;<\/strong><\/p>\n<p><strong>A. Core Framework<\/strong><\/p>\n<ul>\n<li><strong>Objective:<\/strong> To preserve indigenous crafts and boost district-level GDP by identifying one unique product per district (e.g., <em>Kala Namak Rice<\/em> from Siddharthnagar, <em>Ittra<\/em> from Kannauj).<\/li>\n<li><strong>Support System:<\/strong>\n<ul>\n<li><strong>Common Facility Centers (CFCs):<\/strong> Providing modern machinery for artisans (e.g., automated pottery wheels in Khurja).<\/li>\n<li><strong>Marketing:<\/strong> Tie-ups with Amazon\/Flipkart and on-boarding on <strong>GeM (Government e-Marketplace)<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>B. ODOP 2.0 (2024-25 Initiatives)<\/strong><\/p>\n<ul>\n<li><strong>One District One Cuisine (ODOC):<\/strong>\n<ul>\n<li><strong>Launch:<\/strong> In late 2025, the policy expanded to include culinary heritage (e.g., <em>Mathura Peda<\/em>, <em>Agra Petha<\/em>) to promote &#8220;Gastronomy Tourism.&#8221;<\/li>\n<\/ul>\n<\/li>\n<li><strong>Unity Malls (Ekta Malls):<\/strong>\n<ul>\n<li><strong>Locations:<\/strong> Construction sanctioned in <strong>Agra, Lucknow, and Varanasi<\/strong>.<\/li>\n<li><strong>Concept:<\/strong> Grand malls dedicated to selling ODOP products from UP and other states (under the &#8220;Make in India&#8221; umbrella) to tourists.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Export Surge:<\/strong> ODOP products now constitute over <strong>50% of UP&#8217;s total merchandise exports<\/strong>, with items like Moradabad Brass and Bhadohi Carpets reaching new markets in Latin America.<\/li>\n<\/ul>\n<p><strong>Current Affairs Linkage :<\/strong><\/p>\n<ul>\n<li><strong>G20 &amp; Global Branding:<\/strong> The strategic use of ODOP items (e.g., <em>Banaras Pink Meenakari<\/em>) as gifts for foreign delegates during G20 and subsequent diplomatic visits has created a massive global recall value.<\/li>\n<li><strong>ODOP Marts:<\/strong> In 2025, the UP government mandated the opening of &#8220;ODOP Marts&#8221; at all <strong>Railway Stations<\/strong> (under One Station One Product scheme) and <strong>Bus Terminals<\/strong> to boost local sales.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This post is part of our UP Special (Economy) Syllabus Decode with Focused Themes. It is the intiative of ForumIas to help the students prepare for UPPSC Mains.\u00a0Click Here\u00a0to view other articles related to our initiative. Table of Content Public Finance and Fiscal Policy of Uttar Pradesh Tax Reforms in Uttar Pradesh Economic Reforms in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/public-finance-and-fiscal-policy-tax-and-economic-reforms-one-district-one-product-policy-of-up-government\/\">Continue reading <span class=\"screen-reader-text\">[UPPSC-UP Special Syllabus Decoded] Public Finance and Fiscal Policy, Tax and Economic Reforms, One District One Product Policy of UP Government<\/span><\/a><\/p>\n","protected":false},"author":10398,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[12144,12174],"tags":[],"class_list":["post-354381","post","type-post","status-publish","format-standard","hentry","category-up-psc","category-uppsc-syllabus-decode","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/354381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10398"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=354381"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/354381\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=354381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=354381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=354381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}