On February 20 2025, the Finance Minister of Uttar Pradesh (UP) Suresh Kumar Khanna presented Rs 8,08,736 crore (Rs 8.08 trillion) budget for the Financial Year 2025-26 (FY26) in the state legislative assembly in Lucknow, UP. The budget outlay for FY26 witnessed an increase of 9.8% compared to previous financial year (Rs 7.36 lakh crore).
- The major portion of the budget has been allocated towards development projects (22%), followed by education (13%), agriculture and allied sectors (11%), medical and health (6%) and social security (4%).
- This budget has introduced new schemes worth Rs 28,478.34 crore for FY26.
Key Estimates for State’s Financial Indicators:
i.Total receipts estimated at Rs 7,79,242.65 crore, comprising revenue receipts of Rs 6,62,690.93 crore and capital receipts of Rs 1,16,551.72 crore.
ii.The budget has estimated the share of tax collection in revenue receipts at Rs 5,50,172.21 crore, which comprises state’s own tax revenue of Rs 2,95, 000 crore and its share in the central tax pool at Rs 2,55,172.21 crore.
iii.Out of total expenditure, Rs 5,83,174.57 crore has been allocated for the revenue account and Rs 2,25, 561.49 crore for capital account.
iv.Budget estimated a deficit of Rs 29,493.41 crore after deducting total expenditure from consolidated fund receipts.
v.Gross State Domestic Product (GSDP) of UP is projected to reach Rs 27.51 trillion in FY25.
- Fiscal Deficit(FD) is estimated at Rs 91,400 crore, accounting 2.97% of GSDP estimated for FY25.
- This projection related to fiscal deficit is below the mandated Fiscal Responsibility Management (FRBM) norm of less than 3%.
vi.The Capital expenditure (CapEx) of the state has risen from 14.8% to 19.3 % in the last five years, surpassing the national average for major states.
Key Allocations:
i.Budget Focuses on 10 Sectors: The government aims to make UP a USD 1 trillion economy, thus, it has prepared blueprint which focuses on 10 sectors: agriculture and its allied sectors, infrastructure , industry, Information Technology (IT) and electronics, health, education , tourism, urban development, financial services, energy and capital development.
ii.Infrastructure Sector: Rs 1.79 lakh crore has been allocated for infrastructure development which includes energy sector (Rs 61,070 crore); irrigation (Rs 21,340 crore); heavy and medium enterprises (around Rs 24,000 crore); urban development (Rs 25,308 crore); housing and urban planning (Rs 7,403 crore) and civil aviation (Rs 3,152 crore).
- The budget has proposed to allocate towards infrastructure projects with capital expenditure estimated at 20.5%. Rs 1,500 crore has been allocated for new expressway and UP Defence Industrial Corridor (UPIDC) projects.
iii.Health Sector: The health sector has been allocated more than Rs 50,550 crore. The state government announced to provide free medical treatment of up to Rs 5 lakh under Chief Minister (CM) Jan Arogya Abhiyan for home guards, Prantiya Rakshak Dal (PRD) personnel, village watchmen, among others.
iv.Agriculture and allied sectors: Rs 89,353 crore has been allocated for agriculture and rural development sectors. The funding will be used in agriculture, horticulture, animal husbandry, dairy, fisheries, co-operatives, Panchayati Raj, Nammi Gange project, among others.
- The budget proposes to set-up a farmer welfare fund, to provide financial assistance of Rs 1,050 to farmers in case of accidental death or disability.
v.Education: The government of UP has allocated Rs 1,06,360 crore for education. The budget proposes to establish Information and Communication Technology (ICT) labs and smart classes in primary and higher secondary schools; in addition to that, digital libraries and smart classrooms will be set up in government polytechnic colleges.
- The budget has allocated Rs 400 crore for providing free two-wheelers to meritorious students on the basis of eligibility.
- Rs 900 crore has been allocated for the general category pre-10th and post-10th scholarship scheme.
vi.Solar Sector: The state government has proposed to create a solar city in Ayodhya. 3,000 Surya Mitras will be trained under the solar policy.
- Also, the government aims to generate 22,000 Mega Watts (MW) of solar power in 5 years.
vii.Women: The state government announced to provide two free cylinders under the Pradhan Mantri Ujjwala Yojana(PMUY) to eligible women beneficiaries.
- Rs 550 crore has been allocated for CM’s Mass Marriage Scheme, which aims to provide financial assistance for the marriage of daughters (all categories). Also, Rs 700 crore has been allocated for CM Kanya Sumangala Scheme.
Other Key Announcements:
i.While presenting the budget, FM mentioned about the development of ‘Model Smart Urban Bodies’ from 58 urban bodies, with each receiving Rs 2.5 crore , amounting Rs 145 crore.
- The main objective of this initiative is to equip urban cities of the state with advanced facilities, technological innovations, and enhanced sanitation management.
- Also Rs 400 crore allocated for the State Smart City Scheme(SCS).
ii.Rs 5 crore has been allocated to develop an Artificial Intelligence (AI) city in Lucknow. The government also announced to set up a park for technological research in cyber security.
- The budget proposes to establish 8 data centres in the state.
iii.In October 2024, the government of UP launched ‘Zero Poverty Campaign’. Under the campaign, the poorest families in the state are identified from every Gram Panchayat (GP).
- The key target of the campaign is to increase their annual income to Rs 1.25 lakh and ensure they receive basic necessities.
About Uttar Pradesh (UP):
Chief Minister (CM) – Yogi Adityanath
Governor- Anandiben Patel
Capital- Lucknow
National Park (NP) – Dudhwa National Park
