By – Prakarsh Kastwar
The Uttar Pradesh government has presented a budget of Rs 8,08,736 crore for the financial year 2025-26, reflecting a 9% increase from the previous year. The state’s Finance Minister, Suresh Khanna, tabled the budget in the Assembly on Thursday at 11 AM, highlighting key initiatives across multiple sectors.
Key Focus Areas in the Budget
The state government has identified ten major sectors for investment and development, including agriculture, infrastructure, industry, IT & electronics, healthcare, education, tourism, urban development, financial services, and energy. The government has formulated sector-wise strategies to drive growth in these areas.
- Regular review meetings are being conducted to assess progress in these sectors.
- The government aims to ensure smooth policy implementation, ease of doing business, and long-term sustainable development.
- Efforts are being made to position Uttar Pradesh as a major investment hub and a key contributor to India’s economic growth.
Fiscal Stability and Growth
The fiscal health of Uttar Pradesh remains strong, with key indicators showing improvement:
- The NITI Aayog report ranks Uttar Pradesh as a ‘Front Runner’ state in fiscal management.
- The ‘Fiscal Health Index’ has improved from 37.0 (2014-19) to 45.9 (2022-23).
- Capital expenditure as a percentage of total expenditure has increased from 14.8% (2018) to 19.3% (2023), surpassing national averages.
- Capital expenditure in the social sector has risen by 27%, while revenue expenditure has grown at a 9% annual rate.
- Healthcare spending increased from 4.9% (2018-19) to 6.5% (2022-23), the highest among major states.
- Fiscal deficit remains within permissible limits, leading to a decline in debt-to-GSDP ratio.
- Uttar Pradesh’s share in India’s own tax revenue was 9.9% (2022-23), 10.5% (2023-24), and 11.6% (2024-25), second only to Maharashtra.
- Interest payments as a percentage of revenue receipts have decreased from 10.3% (2022-23) to 8.9% (2024-25).
- Uttar Pradesh’s own tax revenue as a percentage of GSDP has consistently been higher than the national average.
Major Announcements in Education and Urban Development
- Smart Classes & Digital Libraries: ICT labs and smart classrooms are being set up in primary and secondary schools. Government polytechnic institutes will also get smart classes and fully digital libraries.
- Artificial Intelligence & Science Infrastructure: Plans are in place to establish Centers of Excellence in AI and develop science cities, science parks, and observatories across the state.
- Smart Cities & Urban Development:
- 58 district headquarters, apart from municipal corporations, will be developed as model smart cities.
- Rs 145 crore has been allocated, with Rs 2.5 crore for each urban body.
Special Initiatives for Youth Empowerment
- Startup Ecosystem & Innovation Fund: The state is working on establishing an innovation fund to boost startups and entrepreneurship.
- Startup Awards: On Innovation Day, the top three startups were awarded Rs 1 lakh, Rs 75,000, and Rs 50,000, respectively, while five other startups received Rs 25,000 each.
- PRD Volunteers & Employment Generation:
- PRD volunteers will receive increased honorariums, creating 20 lakh additional employment days.
- 80,000 youth and women self-help groups will receive sports equipment as an incentive.
- MGNREGA Implementation:
- In FY 2024-25, UP generated 27.40 crore person-days of employment against a target of 26 crore by January 8, 2025.
- 3,13,076 families received 100 days of employment, making UP the top state in India in employment generation under MGNREGA.
- Women’s participation in MGNREGA stood at 42%.
- Skill Development & Apprenticeship:
- Under the Uttar Pradesh Skill Development Mission, 15.25 lakh youth received free job-oriented training in the past six years, with 5.71 lakh securing employment.
- 2,54,335 youth were placed in industries and MSMEs under the apprenticeship program.
- One District One Product (ODOP) Scheme:
- As of December 17, 2024, 1,838 beneficiaries received financial support under ODOP, with Rs 10,560 lakh in margin money disbursed, generating 34,500 jobs.
- Investment & Job Creation:
- Under the ‘Nivesh Mitra’ initiative, 6,62,672 enterprises were registered by November 2024, creating 59.64 lakh jobs.
Conclusion
The Uttar Pradesh government’s budget for 2025-26 reflects its commitment to economic growth, infrastructure development, employment generation, and social welfare. With a strong focus on fiscal discipline, investment promotion, and youth empowerment, the state aims to consolidate its position as a leading economic powerhouse in India.