The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, presented its ninth budget for the financial year 2025-26 in the state assembly on February 20. Finance Minister Suresh Khanna announced a budget of ₹8,08,736.06 crore, marking a 9.8 percent increase from the previous year. The budget continues to focus on key areas such as infrastructure, education, healthcare, social welfare, and economic development, in line with the government's long-term vision.

The total budget size stands at ₹8.08 trillion, with 20.5 percent allocated for capital expenditure. This spending will prioritize infrastructure, industrial growth, mobility, and investment promotion. Uttar Pradesh has seen significant improvement in its fiscal health, with the fiscal index rising from 37.0 between 2014 and 2019 to 45.9 in 2022-23, making it a leader in financial management. Over the past five years, the state’s capital expenditure has grown from 14.8 percent to 19.3 percent, surpassing the national average for major states. The government has also set an ambitious goal of transforming Uttar Pradesh into a $1 trillion economy by implementing strategic sector-wise plans in agriculture, infrastructure, IT, healthcare, education, tourism, and business investments.

Infrastructure and urban development remain a key priority in this budget. The government has announced the construction of four new expressways and has allocated 22 percent of the total budget for infrastructure development. Under the Smart City Mission, 58 municipal corporations will be developed into smart cities. ₹400 crore has been allocated for the State Smart City Scheme, while ₹800 crore has been set aside for Green Road Infrastructure Development in urban areas. The budget also includes ₹1,000 crore for urban flood and stormwater drainage projects, ₹450 crore for Kanha Gaushala and stray cattle shelters, and ₹50 crore for new urban infrastructure services.

The transport and connectivity sector will receive a boost, with ₹400 crore allocated for the Uttar Pradesh State Road Transport Corporation to expand bus fleets and develop depots. The government has also set aside ₹100 crore for the purchase of medium-range electric buses and ₹50 crore for setting up charging stations under the Chief Minister’s Gram Jodo Yojana.

In the education and skill development sector, 13 percent of the budget has been allocated to improve access to quality learning. ₹24 crore will be used to provide laptops and smartphones to government employees for online work. The government has also announced the construction of hostels for working women in Varanasi, Meerut, Prayagraj, Gorakhpur, Kanpur, Jhansi, and Agra, with a total budget of ₹170 crore. Atal Residential Schools will expand their student capacity from 360 to 1,000 per school. ₹50 crore has been allocated for the development of science parks, science cities, and observatories in cities like Agra and Varanasi.

Healthcare and social welfare programs will receive 6 percent of the budget. ₹252 crore has been earmarked for the Uttar Pradesh Chief Minister Bal Seva Yojana, which supports children orphaned due to COVID-19. The budget includes ₹971 crore for additional honorarium payments to Anganwadi workers and ₹100 crore for the Chief Minister’s Sashakt Suposhan Yojana, which provides nutritional support for mothers and children. Integrated child development projects will receive ₹4,119 crore, while ₹2,980 crore has been set aside for widow pension payments. The Mukhyamantri Kanya Sumangala Yojana, which provides financial aid for girls’ education and well-being, has been allocated ₹700 crore. Under the Kanya Vivah Sahayata Yojana, ₹55,000 will be given for same-caste marriages and ₹61,000 for inter-caste marriages.

The government has introduced several initiatives to promote women’s empowerment. Meritorious female students will be provided with scooters under a new scheme. Working women’s hostels will be constructed in key cities, and Anganwadi centers will be strengthened to provide better nutritional support to women and children.

Agriculture and farmers’ welfare remain a major focus, with 11 percent of the budget dedicated to agriculture and allied services. ₹1,050 crore has been allocated for the Chief Minister Kisan Durghatna Kalyan Yojana, which provides financial assistance in cases of accidental death or disability. ₹509 crore has been set aside for installing solar pumps under the PM Kusum Yojana, while ₹124 crore has been allocated to promote natural farming across all districts. The government has also earmarked ₹251 crore for the Seed Park Development Project under the Uttar Pradesh Seed Self-Reliance Policy 2024 and ₹200 crore for agricultural productivity enhancement schemes. Additionally, ₹200 crore has been set aside for the World Bank-aided Uttar Pradesh AgriEase Project.

The budget emphasizes employment generation and the growth of micro, small, and medium enterprises (MSMEs). A total of 92,919 new government jobs will be filled through direct recruitment. The state’s MSME sector continues to be a major employment generator, with 1.65 crore people employed in 96 lakh small-scale industries, making Uttar Pradesh a leader in this sector.

The housing and rural development sector has received a significant allocation in this budget. ₹4,882 crore has been allocated for the Pradhan Mantri Awas Yojana (Gramin) to build more than 36 lakh rural homes. ₹1,200 crore has been set aside for the Chief Minister Awas Yojana (Gramin). The government has also allocated ₹1,088 crore for road maintenance under the Pradhan Mantri Gram Sadak Yojana and ₹427 crore for the Deendayal Upadhyay Gramin Kaushalya Yojana, which provides skill training for rural youth. Additionally, ₹5,372 crore has been allocated to generate 34 crore person-days of employment under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA). The budget sets ambitious revenue generation targets to sustain economic growth. The state aims to collect ₹63,000 crore through excise duty, ₹38,150 crore through stamp and registration fees, and ₹14,000 crore through vehicle tax collections.

Energy and digital development initiatives form another key part of the budget. The government plans to establish eight new data center parks and has committed to developing Ayodhya as a Solar City. ₹4,100 crore has been allocated for the Amrit 2.0 Scheme to improve urban water supply infrastructure, with 39 lakh new drinking water connections planned under this initiative. Several special announcements have also been made in the budget. Beneficiaries of the Ujjwala scheme will now receive two free LPG cylinders per year. ₹400 crore has been allocated for the Smart City Mission, while ₹50 crore has been earmarked for new urban development programs.

The Uttar Pradesh Budget 2025-26 reflects Chief Minister Yogi Adityanath’s vision of economic expansion, infrastructure growth, and social welfare. By focusing on strategic investments in key sectors, the government aims to accelerate the state’s transformation into a major economic powerhouse while ensuring inclusive development for all sections of society.

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