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UP govt presents Rs 9.12 lakh crore Budget: Big push for roads, jobs, healthcare — what it means for you
UP Budget 2026-27: The budget is a 12.9% increase over the previous year. UP Finance Minister Suresh Khanna said Capital Expenditure has been pegged at 19.5% of the total outlay.
Uttar Pradesh Chief Minister Yogi Adityanath (File photo)
The Uttar Pradesh government Wednesday presented a record Budget of Rs 9.12 lakh crore for the 2026-27 financial year — a 12.9% increase over the previous year — with a focus on infrastructure expansion, employment generation, and healthcare.
Key allocations include Rs 34,468 crore for roads and bridges, Rs 100 crore for working women hostels, Rs 315 crore earmarked for a Cancer Institute in Lucknow and Rs 3,822 crore for MSMEs.
Presenting the Budget in the State Assembly, UP Finance Minister Suresh Khanna said Capital Expenditure has been pegged at 19.5% of the total outlay. Sector-wise allocations include 12.4% for education, 6% for health, and 9% for agriculture and allied activities.
The state’s GSDP is estimated at Rs 30.26 lakh crore for 2024-25, reflecting 13.4% growth. Per capita income is projected to rise to Rs 1.2 lakh in 2025-26. Khanna also said the unemployment rate has declined to 2.24%.
Here are the major allocations across sectors
Health and medical education
-Rs 37,956 crore for medical, health and family welfare
-Rs 14,997 crore for medical education
-Rs 1,023 crore for new medical colleges
-Rs 315 crore for Cancer Institute, Lucknow
Infrastructure
-Rs 34,468 crore for roads and bridges
-Rs 27,103 crore for infrastructure and industrial development
-Rs 5,000 crore for industrial area expansion
-Rs 2,000 crore under Atal Infrastructure Mission
-Rs 1,500 crore for bypasses, ring roads and flyovers
Urban and rural development
-Rs 26,514 crore for urban development
-Rs 25,500 crore for rural development
-Rs 6,102 crore for PM Awas Yojana (Gramin)
Agriculture
-Rs 10,888 crore for agriculture schemes
-Rs 637 crore for solarisation of diesel pump sets
-Rs 245 crore for agri-export hub
Industry, MSMEs and employment
-Rs 3,822 crore for MSMEs
-Rs 1,000 crore for Chief Minister Youth Entrepreneur Development Scheme
-Rs 575 crore for Sardar Vallabhbhai Patel Employment and Industrial Zones
-Rs 5,041 crore for handloom and textile sector
Technology and Electronics
-Rs 2,059 crore for IT and electronics
-Rs 225 crore for the UP AI Mission
-AI labs in ITIs and a Cyber Security Operation Centre
Energy and Irrigation
-Rs 65,926 crore for the energy sector
-Rs 2,104 crore for renewable and additional energy sources
-Rs 18,290 crore for irrigation and flood control
Aviation and Tourism
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-Rs 2,111 crore for civil aviation, including Rs 750 crore for Jewar Airport
-Rs 500 crore for tourist site development
For the Panchayati Raj, a provision of Rs 32,090 crore has been proposed, marking a 67% increase over last year.
For Women and Child Development, a provision of Rs 18,620 crore has been made for schemes, an 11% increase over 2025-26.
Fiscal position
Khanna said the Budget adheres to the 3% fiscal deficit limit, in line with recommendations of the 16th Finance Commission, applicable till 2030-31.
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The state’s debt-to-GSDP ratio, which stood at 29.3% in 2016-17 and rose to 33.4% during the Covid-19 pandemic, has been brought down to below 27% in 2024-25. It is targeted to decline further to 23.1% in 2026-27, with a medium-term goal of reducing it to below 20%, said the minister in his Budget speech.
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