UP govt tables ₹9.12 trillion annual Budget with a 12.9% yearly increase

Uttar Pradesh's ₹9.12 trillion FY27 Budget ramps up infrastructure and capex, keeps the fiscal deficit below 3%, and pitches the state as India's next growth engine

The Uttar Pradesh government on Wednesday presented over ₹9.12 trillion Annual Budget for the financial year 2026-27 (FY27), a 12.9 per cent increase as compared to the previous year, with a push for infrastructure development, education, agriculture and medical sectors.

 

The state had tabled a ₹8.08 trillion Budget for FY26.

 

Tabled by state Finance Minister Suresh Khanna in Vidhan Sabha, the Budget allocates 12.4 per cent, 9 per cent and 6 per cent for education, agriculture and medical sectors, respectively.

 

Besides this, the Budget has provided liberal grants toward infrastructure projects, with the capital expenditure pegged at 19.5 per cent.

 

Chief Minister Yogi Adityanath said the Budget allocated more than ₹43,000 crore for new projects, while ₹2 trillion have been provided for capex to create fresh infrastructure.

 

In his post-budget media briefing, the chief minister said the Budget was dedicated to Prime Minister Narendra Modi's ambitious 'Vikshit Bharat@2047 Mission' and to position Uttar Pradesh as India’s growth engine.

 

“Uttar Pradesh has transformed from a BIMARU (economically laggard) state to a breakthrough state. The Budget will actualise people's aspirations, foster public welfare, attract investment, generate jobs for youth, empower women, and give wings to our goal of making the state a $1 trillion economy by 2030,” he added.

 

The state's fiscal deficit is estimated at ₹1.18 trillion, which is 2.98 per cent of the year's estimated gross state domestic product (GSDP), thus taming it below the mandated Fiscal Responsibility and Budget Management (FRBM) norm of less than 3 per cent.

 

“Due to robust fiscal management in the last nine years, we have brought down the state's public debt ratio, curbed tax leakages while refraining from imposing fresh tax,” the CM noted.

 

He announced that a women entrepreneur credit card scheme is being launched, and marketing centres modelled on the ‘SHE Mart Mission’ will be developed apart from hostels for working women.

 

The chief minister said that in nine years, UP's Budget quantum has increased three-folds for the country's most populous state.

 

Earlier, Khanna, while presenting the Budget, said UP’s nominal GSDP was estimated at ₹30.25 trillion in 2024-25, which was a growth of 13.4 per cent over the previous financial year 2023-24. The state’s GSDP is estimated to touch ₹36 trillion in 2025-26.

 

The total estimated receipts in the Budget are to the tune of ₹8.48 trillion, of which revenue receipts pertain to ₹7.29 trillion and capital account receipts of ₹1.19 trillion.

 

The share of tax revenue in UP's revenue receipts is estimated at ₹6.03 trillion, including the state's own tax revenue of ₹3.34 trillion and its share in central taxes at roughly ₹2.69 trillion.

 

The total expenditure in 2026-27 is pegged at more than ₹9.12 trillion, including ₹6.64 trillion in revenue expenditure and ₹2.48 trillion in capital expenditure.

 

The Budget estimates revenue savings of more than ₹64,457 crore.

 

The revenue collection target from excise duty has been set at ₹71,278 crore, while the stamp and registration kitty is estimated at ₹43,802 crore per budgetary estimates.

 

A provision of ₹400 crore has been made for electric buses and ₹150 crore for construction of bus terminals.

 

“After coming to power, our government inherited a high public debt ratio of 29.3 per cent in 2016-17, which was reduced to 27.9 per cent in 2019-20. However, it increased to 33.4 per cent in 2021-22 owing to the Covid-19 pandemic,” Khanna underlined.

 

The state government successfully tamed public debt below 27 per cent in 2024-25, while in the next financial year 2026-27, it is targeted at 23.1 per cent.

 

UP’s per capita income, which was ₹54,564 in 2016-17, increased to ₹1,09,844 in 2024-25, and is estimated to touch ₹120,000 in the current financial year 2025-26.

 

The finance minister underscored that UP has emerged as a mobile phone manufacturing hub, accounting for almost 65 per cent of the domestic production.

 

Almost 55 per cent of India’s electronics components units are situated in UP, and the state accounts for ₹44,744 crore worth of exports.

 

Under the present dispensation, memorandum of understanding (MoUs) totalling ₹50 trillion have been signed with investors with a potential of a million job opportunities, he informed.

 

Of these, more than 16,000 projects worth ₹15 trillion have already been launched in four groundbreaking ceremonies in the state.

 

Meanwhile, the Budget has provided ₹65,926 crore for the energy sector, which is 8 per cent higher than 2025-2026.

 

It makes a provision of ₹27,103 crore for infrastructure and industrial development schemes, while civil aviation gets ₹2,111 crore.

 

A provision of ₹5,000 crore has been dedicated to the 'Mukhyamantri Industrial Area Expansion and New Industrial Area Promotion Scheme'.

 

Under the 'Swami Vivekanand Yuva Sashaktikaran Yojana', the distribution of tablets and smartphones has received ₹2,374 crore.

 

Under the Atal Infrastructure Mission, a provision of ₹2,000 crore has been made for infrastructure development.

 

Similarly, ₹100 crore has been provided for the implementation of the Incentive Policy 2023 announced for Foreign Direct Investment (FDI) and investments from Fortune-500 companies.

 

A provision of ₹3,822 crore has been given for the MSME sector, which is 19 per cent higher compared to 2025-2026.

 

For the upliftment of handloom and power loom weavers, a provision of ₹4,423 crore is proposed for the 'Atal Bihari Vajpayee Powerloom Bunker Vidyut Flat Rate Yojana'.

 

Moreover, ₹2,059 crore has been provided for the IT and electronics sector even as the rural development schemes get ₹25,500 crore.

 

To promote the use of artificial intelligence (AI), the Uttar Pradesh AI Mission has been given ₹225 crore.

 

A provision of ₹34,468 crore has been made for the construction and maintenance of roads and bridges.