Uttar Pradesh Finance Minister Suresh Kumar Khanna unveiled the Rs 8,08,736 crore budget for the financial year 2025-26 in the state assembly, emphasizing development, education, agriculture, and health. The budget is 9.8% higher than the previous year’s outlay and aims to accelerate research & development and Information Technology advancements.
Key allocations in UP Budget 2025-26
- Development sector: Rs1.78 lakh crore (22% of total budget)
- Education: Rs1.05 lakh crore (13% of total budget)
- Agriculture & related services: Rs89,000 crore (11%)
- Health sector: Rs48,500 crore (6%)
Technology & research: AI City and cyber security park
Aiming to position UP as a leader in technology and innovation, the state government announced the development of an Artificial Intelligence (AI) City. This project will drive technological advancements, AI-driven businesses, and research. Additionally, a dedicated cyber security research park will be established to strengthen digital security frameworks.
Smart municipal bodies & modernized legislative assembly
The budget also allocates Rs145 crore to transform 58 municipal bodies into smart urban centers, with Rs2.50 crore per municipality. The legislative assembly will undergo modernization alongside the establishment of smart classrooms and advanced laboratories in schools and polytechnics.
Welfare initiatives: Zero Poverty Abhiyan & worker facilities
- The Zero Poverty Abhiyan, launched on Gandhi Jayanti (October 2, 2024), aims to uplift the poorest families by ensuring a minimum annual income of Rs1,25,000.
- Uttar Pradesh Building and Other Construction Workers Welfare Board will build labor bases at district headquarters, providing canteens, drinking water, and sanitation facilities.
Economic growth: Doubling of GSDP & increased per capita income
Finance Minister Khanna highlighted UP’s financial turnaround, with the Gross State Domestic Product (GSDP) projected to reach Rs27.51 lakh crore for 2024-25. Additionally, per capita income has increased from Rs52,671 (2016-17) to Rs93,514 (2023-24).
Financial discipline & recognition by NITI Aayog
UP has been recognized as a “front runner state” by NITI Aayog, reflecting improvements in capital expenditure, health, and financial management. The Reserve Bank of India (RBI) acknowledged UP’s strong tax revenue performance, further reinforcing fiscal discipline.
The Uttar Pradesh Budget 2025-26 reflects the state government’s vision for technological advancement, smart urban development, and welfare upliftment. With increased allocations for education, research, and IT infrastructure, UP aims to strengthen its economic and social landscape.