Uttar Pradesh govt mops up nearly ₹27,858 crore tax revenue in Q1 FY26

The Uttar Pradesh (UP) government has collected tax revenue of about ₹27,858 crore in the April-June quarter of 2025-26 (Q1FY26).

 

The collection of ₹27,858 crore corresponds to 62.8 per cent of the tax revenue target set at ₹44,356 crore for the first quarter, according to UP Finance Minister Suresh Khanna.

 

Of the total collection, the share of goods and services tax (GST) and value added tax (VAT) stood at ₹20,798 crore and ₹7,060 crore, respectively.

 

In addition to it, the UP excise department collected ₹14,229 crore in revenue, reaching almost 99 per cent of the ₹14,400 crore target.

 

Khanna said the non-tax UP stamp and registration department collection during Q1 touched ₹8,353 crore, while the state transport department collected ₹2,914 crore.

 

Similarly, the UP energy department earned ₹762 crore, while the land revenue stood at ₹72 crore. This has helped the total tax and non-tax revenue kitty of the state in Q1FY26 reach more than ₹54,000 crore.

 

In the UP Budget 2025-26, the Yogi government had estimated total receipts to be at ₹7.79 trillion, including revenue receipts of more than ₹6.62 trillion and capital receipts of ₹1.16 trillion.

 

The share of tax revenue in revenue receipts for FY26 has been pegged at ₹5.5 trillion, including its tax revenue of ₹2.95 trillion and the state’s share in central taxes at ₹2.55 trillion.

 

Traditionally, the tax collections have gained pace in the successive quarters. Earlier, Chief Minister (CM) Yogi Adityanath had said UP had transformed into a leading revenue-surplus state from a deficit economy.

 

According to Edelweiss Mutual Fund Managing Director & Chief Executive Officer Radhika Gupta, UP was one of India’s top five contributors to the GDP, and presented significant untapped potential for investment across Tier-II, and -III cities.

 

She also noted that despite its large economic size, the assets under management in UP stood at just 14.3 per cent of the GDP, which signaled a big unserved financial products market.

 

The growing network of expressways is also boosting the socioeconomic landscape of UP, which aspires to become a $1 trillion economy.