The report of the Comptroller and Auditor General for 2022-23 reveals that Uttarakhand’s GSDP has crossed Rs 3.02 lakh crores, at a growth rate of 11.19 percent. Other statistics also indicate that the state is on an impressive growth trajectory. The state’s annual budget is on an upward path, obviously on the back of buoyant tax collections. The question is – does this result from conscious policy formulation or just the impact of a natural upswing in the economy? This matters because wealth too is a major responsibility – if not properly handled, it can lead to serious distortions for which the price may have to be paid later.
An example would be the real estate boom taking place in a state that actually has very little land to spare in areas where construction projects are possible. For a number of reasons, particularly the improving connectivity with the National Capital Region, demand for housing has increased manifold. As such, realtors are utilising marginal lands that are unsafe or illegally obtained. Plotting is being done in places that cannot stand legal or regulatory scrutiny. Also, the increase in income has encouraged locals, both, in the plains and hills to construct houses along rivers and slopes that are likely to be affected by landslides and subsidence. The large influx of migrant labourers has led to encroachments on riverbeds and public land. The situation has gradually evolved over time and authorities cannot be entirely blamed for failing to anticipate how big the problem could become. The focus in the beginning was actually to reduce the number of regulations that might get in the way of economic growth.
This infrastructure growth in the private sector is now becoming a headache for the government, as it has to pick up the pieces when things go wrong – such as natural disasters and social disruptions. It is already trying to catch up with the fallout of growth in the form of increasing traffic in Dehradun, which traditionally did not have a well-developed road network. Despite the recorded growth in revenues, projects such as bypasses, the metro-rail, ring-roads, etc., continue to languish for a number of reasons.
It would seem that this ‘development’ has come more because of the state’s natural advantages such as a generally law-abiding citizenry, the existence of important pilgrimage sites, and the expanding tourism sector, not because of a planned effort by government. However, it is no longer possible to let the economy grow by itself, without directing it towards a more regulated path. It will be a difficult task, but the sooner the government takes it up, the better it will get done.
