Uttar Pradesh Budget 2026-27
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General Studies Paper III: Government Policies & Interventions |
Why in News?
Recently, Uttar Pradesh Budget 2026-27 was presented by Finance Minister Suresh Kumar Khanna. This record-breaking budget of ₹9,12,696.35 crore is the largest in the state’s history, marking a 12.9% increase over the previous year.
- The theme of the budget is centered on “Safe Women, Capable Youth, Prosperous Farmers, and Jobs for Every Hand,” aligning with the state’s ambitious goal of becoming a $1 Trillion Economy by 2029-30.
Key Highlights of Uttar Pradesh Budget 2026-27
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Fiscal & Economic Indicators: The state has demonstrated remarkable fiscal resilience, transitioning from a “BIMARU” tag to becoming the second-largest economy in India.
- Total Outlay: ₹9.12 Lakh Crore (Approx. 12.9% rise YoY).
- New Schemes: ₹43,000 Crore earmarked for fresh initiatives.
- Capital Expenditure (Capex): Pegged at 19.5% (~₹1.78 Lakh Crore), focusing on long-term asset creation.
- GSDP Growth: Estimated at 13.4% with a total GSDP of ₹30.26 Lakh Crore.
- Fiscal Deficit: Capped at 2.98%, strictly within the 3% limit of the 16th Finance Commission.
- Debt-to-GSDP Ratio: Projected to decline to 23.1% by the end of 2026-27.
- Per Capita Income: Targeted to reach ₹1.20 Lakh in 2025-26.
- Unemployment Rate: Drastically reduced to 2.24% (from 17-19% in 2017).
Infrastructure (25%):
- Northeast Corridor: A massive ₹34,000 Crore for a high-speed corridor connecting Gorakhpur to Saharanpur.
- Roads & Bridges: Allocation of ₹34,468 Crore.
- Expressways: Continued funding for the Ganga Expressway and Bundelkhand Expressway expansion.
- Jewar International Airport: Plans to expand to five runways, positioning it as a global aviation hub.
- Urban Expansion: ₹3,500 Crore for the “Chief Minister’s Urban Expansion and New City Promotion Scheme.”
Education & Youth (12.4%):
- Smart Schools: All primary schools to be upgraded into Smart Schools under the Samagra Shiksha Abhiyan.
- Digital Access: ₹2,374 Crore for the Swami Vivekananda Youth Empowerment Scheme to distribute 5 million tablets/smartphones.
- Higher Education: Provision for three new universities and 14 new medical colleges in unserved districts.
- Youth Entrepreneurship: Interest-free loans up to ₹5 Lakh for young entrepreneurs.
- Basic Education: Total allocation of ₹80,997 Crore.
Healthcare (6%):
- Total Outlay: ₹37,956 Crore for health and family welfare; ₹14,997 Crore for medical education.
- Lucknow Cancer Institute: ₹315 Crore for world-class cancer care.
- Mental Health: All 75 districts to be covered under the National Mental Health Programme.
- New Medical Colleges: ₹1,023 Crore for colleges under the PPP model.
- Integrated Disease Surveillance: A real-time portal for monitoring 16 infectious diseases.
- Health Insurance: ₹2,000 crore for Ayushman Bharat and ₹500 crore for Mukhyamantri Jan Arogya Yojana.
Agriculture & Farmer Welfare (9%):
- Corpus Fund for FPOs: A ₹150 Crore fund established in collaboration with NABARD for Farmer Producer Organizations.
- Solar Pumps: ₹637.84 Crore to convert diesel pumps into eco-friendly solar units.
- Agri-Export Hub: Establishment of a world-class hub under the UP Agri project (World Bank-assisted).
- Free Electricity: Continued provision for free electricity for private tube wells.
- SAP: The State Advised Price (SAP) for sugarcane was increased by ₹30 per quintal.
- Livestock Care: ₹2,000 crore for the maintenance of stray cattle and ₹100 crore for large cow protection centres.
- Fisheries & Aqua Parks: ₹190 crore for an integrated aqua park and ₹100 crore for a modern fish wholesale market.
Women Empowerment & Social Security:
- Pink Mobility: ₹400 Crore for a dedicated scooter scheme for school girls and working women.
- Marriage Assistance: ₹150 Crore for the mass marriage scheme (Kanya Sumangala/Marriage Grant).
- Women Hostels: ₹100 Crore for working women’s hostels in major cities.
- Social Welfare: ₹18,620 Crore for child and women welfare schemes.
- Kanya Sumangala Yojana: The financial grant for daughters’ marriages under the Mukhyamantri Samuhik Vivah Yojana (Mass Marriage Scheme) has been doubled from ₹51,000 to ₹1.01 lakh per beneficiary.
- Safe City Projects: The budget prioritises the expansion of CCTV networks, women police beats, and anti-Romeo squads to enhance security in public and workplaces.
- Skill Development: Special skill development and job placement centres are being established, with a focus on upliftment through 12 new industrial training institutes (ITIs) exclusively for women and women’s branches in 47 existing ITIs.
- Destitute Women Pension: The budget for women and child development saw an 11% increase, including ₹3,500 crore for the Destitute Women Pension Scheme, which now supports over 38.58 lakh beneficiaries.
Tourism & Cultural Identity:
- Ayodhya: ₹150 Crore for tourism infrastructure and the completion of Ram Path.
- Religious Circuits: ₹200 Crore for ‘parikrama’ paths in Mirzapur (Vindhyachal) and funds for Mathura, Kanpur, and Meerut.
- Global Footprint: Nearly 122 crore tourists visited UP in the first half of 2025.
- New Destinations: Development of ‘Parikrama’ paths in Mirzapur and upgrades for Vindhyachal Dham.
Industrial Growth & MSMEs:
- MSME Sector: ₹3,822 Crore to support small businesses and the ODOP (One District One Product) scheme.
- PM MITRA Park: Development of a mega integrated textile and garment hub in Lucknow.
- Industrial Infrastructure: ₹27,103 Crore for industrial development schemes.
- AI Mission: The Uttar Pradesh AI Mission is proposed with ₹225 crore.
- Industrial Expansion: ₹5,000 crore allocated for the Chief Minister Industrial Area Expansion and New Industrial Area Promotion Scheme.
- Defence Corridor: MOUs signed for 200 defence industries with a projected investment of ₹35,280 crore.
- Textile Surge: Massive ₹5,041 crore allocation for handloom and textiles, a five-fold increase from last year.
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Also Read: Union Budget 2026-27 |
