UP Budget 2026 explained: Where the Rs 9.13 lakh crore will go

Uttar Pradesh Finance Minister Suresh Khanna on Wednesday presented a Rs 9.13 lakh crore Budget for the financial year 2026-27 in the state Assembly.

Tabling the Budget before the House, Khanna said the total outlay for 2026-26 is Rs 9,12,696.35 crore, marking an increase of about 12.2 per cent over the previous year’s outlay.

How much is being spent on capital expenditure?

Stressing that the state government is always fully committed to fiscal management and debt control, Khanna said the capital expenditure in this Budget is 19.5 per cent.

In accordance with the recommendations of the 16th Central Finance Commission, which have been accepted by the Centre, the fiscal deficit limit for the financial year 2026-27 has been set at three per cent. This will remain in effect until 2030-31.

Which sectors are getting priority?

The Budget focuses on education and agriculture sector to drive economic growth.

Referring to the allocations made for major items, Khanna said:

“The allocations for education and health are 12.4 and six% of the total budget, respectively. Furthermore, the amount allocated for agriculture and allied services is nine% of the total budget.”

What is the plan for jobs and skill development?

Emphasising that capital investment and infrastructure development play a vital role in strengthening the economy, the minister 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.

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 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. Separate centres will be set up for women to increase their participation in the workforce, the minister added.

What about agriculture and exports?

Khanna said an agri-export hub will be established under the World Bank-assisted UP-AGREES project to boost agricultural exports and enhance farmers’ income.

What reforms are planned for businesses?

As part of the next phase of the Ease of Doing Business reforms, industries will be promoted based on the “Jan Vishwas” principle, with registration, licensing, and other procedures to be made more simplified and business-friendly, the minister said.

The state will also work on implementing a Digital Entrepreneurship Scheme to encourage innovation and technology-driven enterprises.

What did the minister say about development?

He said CM Yogi Adityanath’s resolve for development is reflected in the line:

“Yahi junoon, yahi khwab mera hai, diya jalakar roshni kar doon jahan andhera hai” (This is my passion, this is my dream – to light a lamp and illuminate wherever there is darkness).

What support did he acknowledge from the Centre?

The minister expressed gratitude to Prime Minister Narendra Modi for including two high-speed rail corridors — Delhi-Varanasi and Varanasi-Siliguri — connecting Uttar Pradesh in the Union Budget for 2026-27.

He also welcomed the proposal for the development of two sites of archaeological and cultural significance in Uttar Pradesh — Sarnath and Hastinapur — in the Union Budget.

Khanna said proposals such as establishing emergency and trauma centres in every district hospital, setting up hostels for girl students in each district, and skill enhancement of 10,000 tourist guides will benefit the people of Uttar Pradesh, along with other states.

He further lauded the Centre’s announcement to reduce the prices of medicines for diabetes and cancer, terming it a highly commendable step.

(With inputs from agencies)