UP presents 'record' Budget for 2026-27 ahead of Assembly polls next year

The Uttar Pradesh government on Wednesday, 11 February presented a record Budget of Rs 9.12 lakh crore for the financial year 2026-27, the largest in the state's history, with a focus on employment, infrastructure development and healthcare, according to the government.

The Budget, tabled by finance minister Suresh Kumar Khanna in the state Assembly, is being seen as the last full Budget ahead of the Assembly elections scheduled early next year.

Khanna said the outlay of Rs 9,12,696.35 crore is about 12.2 per cent higher than that of the previous financial year, making it the "biggest Budget ever" presented in the state.

The minister said capital expenditure accounts for 19.5 per cent of the total Budget. In line with the recommendations of the 16th Central Finance Commission, accepted by the Centre, the fiscal deficit limit for 2026-27 has been fixed at three per cent, which will remain applicable till 2030-31.

The allocations for education and health stood at 12.4 per cent and six per cent of the total Budget, respectively. Agriculture and allied services have been allocated nine per cent of the total outlay.

Stressing that strengthening law and order remains a top priority, Khanna said Rs 1,374 crore has been proposed for the construction of non-residential police buildings and Rs 1,243 crore for residential buildings.

For medical education, an allocation of Rs 14,997 crore has been proposed. At present, the state has 81 medical colleges, of which 45 are run by the state government and 36 by the private sector. An amount of Rs 1,023 crore has been proposed for the establishment of 14 new medical colleges.

Additionally, Rs 315 crore has been earmarked for the Cancer Institute in Lucknow and Rs 130 crore for providing free treatment for incurable diseases.

Khanna said Rs 37,956 crore has been proposed for medical, health and family welfare, which is 15 per cent higher than the previous year. About Rs 8,641 crore has been allocated for the National Rural Health Mission, Rs 2,000 crore for the Ayushman Bharat National Health Protection Scheme, and around Rs 2,867 crore for AYUSH services.

For infrastructure and industrial development, Rs 27,103 crore has been proposed, 13 per cent higher than 2025-26. A provision of Rs 5,000 crore has been made for the Chief Minister Industrial Area Expansion and New Industrial Area Promotion Scheme.

Under the Swami Vivekananda Yuva Sashaktikaran Yojana, distribution of tablets and smartphones is underway, for which Rs 2,374 crore has been proposed. An allocation of Rs 2,000 crore has been made under the Atal Infrastructure Mission for infrastructure development.

The government has also provided Rs 1,000 crore for the implementation of the Incentive Policy 2023 aimed at attracting foreign direct investment and investments from Fortune 500 companies.

On the Defence Industrial Corridor project, the minister said MoUs have so far been signed for setting up 200 defence industries, entailing a proposed investment of Rs 35,280 crore and generating an estimated 53,263 direct jobs.

For micro, small and medium enterprises (MSMEs), Rs 3,822 crore has been provided, 19 per cent higher than the previous year. A new Sardar Vallabhbhai Patel Employment and Industrial Zone scheme has been proposed with an outlay of Rs 575 crore. An allocation of Rs 75 crore has been proposed for a new 'One District, One Dish' scheme.

For the handloom and textile sector, about Rs 541 crore has been proposed — more than five times the previous year's allocation. The government has set a target of generating 30,000 jobs in the textile sector in 2026-27.

A new scheme has been proposed for the modernisation of the blanket production centre in Gorakhpur with a provision of Rs 7.5 crore.

Khanna said Rs 2,059 crore has been allocated for IT and electronics schemes, 76 per cent higher than the previous year. The state will launch the Uttar Pradesh AI Mission for development in the field of artificial intelligence, for which Rs 225 crore has been proposed.

Khanna, during his speech, emphasised that capital investment and infrastructure development play a vital role in strengthening the economy and said providing employment opportunities to the state's youth and equipping them with the necessary skills is equally important.

He noted that individuals possessing technical skills or proficiency in any trade are "unlikely to remain unemployed". To this end, large-scale employment-oriented training and skill enhancement programmes will be run in mission mode on a priority basis. Alongside formal education, arrangements will be made to strengthen the skill base of the youth.

The capacity of existing skill development training centres will be enhanced, and new centres will be set up across the state. Private sector participation will also be ensured in this campaign.

Skill development and job placement centres will be established in various districts under the public-private partnership (PPP) mode, he said. Separate centres will be set up for women to increase their participation in the workforce, the minister added.

Edited PTI copy