Uttar Pradesh Budget 2026–27: Full Analysis, Highlights & Sector-Wise Breakdown
On 11 February 2026, Finance Minister Suresh Kumar Khanna presented the Uttar Pradesh State Budget 2026-27, outlining an aggressive roadmap to transform Uttar Pradesh into a USD 1 Trillion Economy by 2029.
This budget emphasizes infrastructure expansion, industrial growth, youth empowerment, agriculture support, and social welfare, while maintaining fiscal discipline.
1. Budget Size & Fiscal Health
Overall Financial Estimates
| Indicator | Amount / Target |
|---|---|
| Total Budget Outlay | ₹9,12,696.35 crore |
| Increase Over Previous Year | ~12.2% – 12.9% |
| Capital Expenditure | ~₹1.78 lakh crore (19.5%) |
| Revenue Expenditure | ~₹5.83 lakh crore |
| Fiscal Deficit Cap | 3% of GSDP |
| Debt-to-GSDP Target | ~23.1% |
| Validity of Fiscal Cap | Till 2030-31 |
Economic Indicators
| Indicator | Value |
|---|---|
| GSDP | ₹30.25 lakh crore |
| Growth Rate | 13.4% |
| Per Capita Income (2016-17) | ₹54,564 |
| Current Per Capita Income | ₹1,09,844 |
| Expected (2025-26) | ~₹1,20,000 |
| Multidimensional Poverty Reduction | ~6 crore people |
| Unemployment Rate | 2.24% |
Key Insight:
UP is shifting from welfare-driven spending toward asset-creating capital investment, which indicates long-term economic planning.
2. Infrastructure Development (≈25% of Budget)
Massive infrastructure push remains the backbone of the trillion-dollar economy strategy.
Major Projects
- Northeast High-Speed Corridor: ₹34,000 crore connecting Gorakhpur → Saharanpur
- Jewar International Airport Expansion: Planned 5 runways for global hub connectivity
- Continued funding for:
- Ganga Expressway
- Bundelkhand Expressway
Impact:
- Faster logistics
- Industrial corridor growth
- Development of backward regions
- Boost to exports & tourism
3. Education & Youth Empowerment (12.4%)
Key Schemes
| Scheme | Benefit |
|---|---|
| Swami Vivekananda Youth Empowerment | 50 lakh tablets & smartphones |
| CM Youth Entrepreneur Scheme | Interest-free loans up to ₹5 lakh |
| New Universities | 3 |
| New Medical Colleges | 16 |
Goal: Skill + technology + entrepreneurship = employment generation
4. Agriculture & Farmer Prosperity (≈9–12%)
Major Announcements
- Free electricity for private tube wells (irrigation support)
- Sugarcane price increased ₹30/quintal
- Additional farmer income: ₹3,000 crore
Expected Impact
- Lower farming cost
- Higher rural consumption
- Boost to agro-industries
5. Women Welfare & Social Security
Major Welfare Measures
| Initiative | Details |
|---|---|
| Kanya Sumangala Yojana | 26.81 lakh beneficiaries |
| Marriage Grant | ₹50,000 → ₹1 lakh |
| Scooter Scheme | ₹400 crore allocation |
| Safe City Project | CCTV expansion & anti-Romeo squads |
| Skill Centres for Women | Economic empowerment |
Objective: Improve safety, mobility & economic participation of women.
6. Support for Families & Minorities
- ₹150 crore marriage assistance for poor families’ daughters
- Expanded social safety net programs
- Inclusive development focus
7. Industrial & Technological Leadership
Manufacturing Powerhouse
- Produces 65% of India’s mobile phones
- Houses 55% electronics component units
Employment Expansion
- Creation of Uttar Pradesh Employment Mission
- Target: Jobs for 10 lakh youth (domestic + overseas)
Energy Transition
| Energy Sector | Status |
|---|---|
| Solar Capacity | 2,815 MW |
| Thermal Power Growth | +55% since 2016 |
Meaning: UP aims to become both an industrial hub and energy-secure state.
8. Overall Strategic Vision
The budget aligns around five pillars:
- Infrastructure-led growth
- Industrial manufacturing expansion
- Youth entrepreneurship & employment
- Agriculture income enhancement
- Social inclusion & women empowerment
Conclusion
The Uttar Pradesh Budget 2026-27 is not merely a financial statement — it is a long-term economic transformation blueprint.
By balancing capital investment, welfare schemes, and fiscal discipline, the state aims to:
- Become India’s manufacturing backbone
- Expand employment opportunities
- Improve living standards
- Achieve a USD 1 trillion economy by 2029
If effectively implemented, this budget could position Uttar Pradesh among the fastest-growing sub-national economies in the world.
