For Uttarakhand, reimbursement of all expenses on the basis of its own income is still a distant dream. With the help from the Center and grants based on the recommendations of the 15th Finance Commission, there has been some relief from the crisis situation every month regarding the payment of salaries, allowances and pensions. This expenditure is going to increase further in the coming time. To deal with this, the state government has taken the initiative to increase its own tax revenue. In the financial year 2025-26, a target has been set to raise more than 26 thousand rupees from its own tax revenue. Expectations have been tied for more income from SGST, excise, stamp and registration as well as mining. The biggest challenge before the state is to overcome the increasing expenditure on non-development items in the form of salaries, allowances, pensions, wages. It is a matter of relief that the state government increased its own tax revenue during this period. In 2024-25, a target was set to get 22,509 crores from own tax revenue.
The target was set to raise tax revenue of more than 3000 crores.
More than the target amount is expected to be received by the end of the financial year. Encouraged by the success of efforts to increase tax revenue, a target of increasing this target by 4000 crores has been set in the new financial year. Earlier, as compared to the financial year 2023-24, a target was set to raise more than 3000 crores of tax revenue in the financial year 2024-25. Assistance will be available till the next financial year on the recommendations of the 15th Finance Commission. The recommendations of the 15th Finance Commission have played a major role in rescuing the state government from financial crisis. On the basis of these, the government will continue to get the prescribed financial assistance from the Center till the year 2025-26. This assistance started being received from the year 2020-21. For the first time, the Commission had prepared a way to provide an amount of Rs. 28,147 crores as revenue deficit grant for five years. The state’s share in central taxes increased. The result was that the state, which was forced to take loan every month to pay salaries, allowances and pensions, was able to get more money for development work.
Tax revenue set for the year 2025-26 (amount: crores of rupees)
Department, Tax revenue target
SGST, 11833
VAT, 2779
Stamp and Registration, 3091
Excise, 5060
Mining, 1500
Transport, 1767
Forest, 720
Energy, 605
The expenditure on salaries etc. in the state is as follows
Financial year, amount (crores of rupees)
2018-19, 12900
2019-20, 13,054
2020-21, 13709
2021-22, 14,511
2022-23, 15883
2023-24, 16638
2024-25, 19582
Pension expenditure in the state Status
Financial Year, Amount (Rs. Crore)
2018-19, 5396
2019-20, 5507
2020-21, 6168
2021-22, 6364
2022-23, 7181
2023-24, 7597
2024-25, 8140
