Uttar Pradesh Budget 2026-27 | 11 Feb 2026

Why in News?

On 11th February, 2026, Finance Minister Suresh Kumar Khanna presented the Uttar Pradesh State Budget for the financial year 2026-27. The budget serves as a strategic roadmap to transform Uttar Pradesh into a USD 1 trillion economy by 2029.

Key Points: 

• Total Budget Estimate for 2026-27: ₹9,12,696.35 crore — an increase of about 12.2–12.9% over the previous year’s budget. 
• Capital Expenditure: A significant shift is noted toward asset creation, with Capital Expenditure pegged at 19.5% of the total outlay (~₹1.78 lakh crore) to strengthen long-term economic growth.  
• Revenue Expenditure: Primarily covers administrative costs, salaries, and interest payments.  
  • For 2026-27, it is estimated at approximately ₹5.83 lakh crore. 
• Fiscal Deficit Cap: 3% of GSDP, aligned with 16th Finance Commission recommendations and effective until 2030-31. 
• Debt-to-GSDP Target: The state aims to reduce the debt ratio to ~23.1 % by the end of the fiscal year, reflecting a focus on fiscal sustainability. 
• GSDP: Estimated ₹30.25 lakh crore with 13.4% growth. 
• Per Capita Income: Grew from ₹54,564 (2016-17) to ₹1,09,844, expected to reach ~₹1,20,000 in 2025-26. 
• Poverty & Employment: Nearly 6 crore people lifted out of multidimensional poverty; unemployment at 2.24%. 
  • These figures underscore the state’s rapid economic expansion and development trajectory. 
• Infrastructure (25% of total outlay): 
  • Northeast Corridor: ₹34,000 crore for a high-speed corridor connecting Gorakhpur to Saharanpur. 
  • Jewar International Airport: Expansion to five runways to boost global connectivity. 
  • Expressways: Continued funding for the Ganga and Bundelkhand expressways to integrate backward regions. 
• Education & Youth Empowerment (12.4%): 
  • Swami Vivekananda Youth Empowerment Scheme: Distribution of 5 million tablets/smartphones. 
  • CM Youth Entrepreneur Scheme: Interest-free loans up to ₹5 lakh for young entrepreneurs. 
  • New Universities: Three new universities and 16 new medical colleges announced. 
• Agriculture & Farmer Prosperity (9-12%): 
  • Irrigation: Continued provision for free electricity for private tube wells. 
  • Sugarcane: Sugarcane prices for 2025-26 raised by ₹30 per quintal, adding ₹3,000 crore to farmer income. 
• Women's Welfare & Social Security: 
  • Kanya Sumangala Yojana: Benefiting over 26.81 lakh girls; grant for daughter's marriage increased from ₹50,000 to ₹1 lakh. 
  • Safe City Projects: Expansion of CCTV networks and anti-Romeo squads. 
  • The budget includes ₹400 crore allocation for a dedicated scooter scheme for school and working women to enhance mobility and participation. 
  • Establishment of special skill development centres to uplift women economically.  
• Support for Families & Minorities:  
  • ₹150 crore provision for marriage assistance to poor families’ daughters (part of social safety nets). 
  • Social welfare focus aligned with broader inclusive development goals. 
• Industrial & Technological Leadership 
  • Manufacturing Hub: UP now produces 65% of India's total mobile phones and houses 55% of the country's electronics component units. 
  • Employment Mission: Creation of the Uttar Pradesh Employment Mission to expand both domestic and overseas job opportunities for 10 lakh youth. 
  • Energy Transition: Total solar power projects installed reached 2,815 MW, with thermal capacity increasing by over 55% since 2016.