Lucknow, February 11 – The Uttar Pradesh government presented a record budget of Rs 9.12 lakh crore for the 2026-27 fiscal year, the largest in the state's history, with a focus on employment, infrastructure development, and healthcare.
The budget, presented by Finance Minister Suresh Kumar Khanna in the state Assembly, is seen as the last full budget before the upcoming Assembly elections.
Khanna stated that the Rs 9,12,696.35 crore allocation is approximately 12.2 per cent higher than the previous fiscal year, making it the "biggest budget ever" presented in the state.
He said Chief Minister Yogi Adityanath has been working to develop every section and region of the state.
The minister noted that capital expenditure accounts for 19.5 per cent of the total budget. In line with the recommendations of the 16th Central Finance Commission, which were accepted by the Centre, the fiscal deficit limit for 2026-27 has been set at three per cent, which will remain in effect until 2030-31.
He affirmed that the state government remains fully committed to prudent financial management and debt control.
Allocations for education and health stand at 12.4 per cent and six per cent of the total budget, respectively. Agriculture and related services have been allocated nine per cent of the total outlay.
Emphasizing the importance of maintaining law and order, Khanna stated that 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. Currently, 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 stated that Rs 37,956 crore has been proposed for medical, health, and family welfare, which is 15 per cent higher than the previous year. Approximately 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, the 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.
Regarding the Defence Industrial Corridor project, the minister said that MoUs have 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, approximately 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 stated that 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.
During his speech, Khanna emphasized 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.
