UP Budget: Infra, tech push in pursuit of trillion dollar economy target
Focus on 3 Es -- education, entrepreneurship and employment; budget envisions development of state as AI hub, proposes four new expressways
Aimed at giving a push to infrastructure and technology and turning Uttar Pradesh into a trillion dollar economy with the focus on education, entrepreneurship and employment, the Yogi Adityanath government on Thursday presented its ninth annual budget (2025-26) of a projected size of over ₹8.08 lakh crore.
The budget incorporates new schemes of ₹28,478.34 crore with a futuristic vision to make the state the main investment hub and growth engine of the country.
The budget size of ₹8,08,736.06 crore for 2025-26 is 9.8% more vis-a-vis the budget size of 2024-25.
Chief minister Yogi Adityanath later speaking to media persons said the budget was dedicated to the deprived sections and the Sanatan.
Minister for finance Suresh Khanna, who presented the annual budget, read out his 24-page speech in nearly an hour and 20 minutes. He opened his address with two couplets, including one from the Ramcharitmanas to shower praises on chief minister Yogi Adityanath, and said the budget was devoted to the welfare of 25 crore people.
Uttar Pradesh’s Gross State Domestic Product, which was only ₹12.89 crore in 2017-2018, is set to go up to ₹27.51 lakh crore on March 31, 2025, Khanna said.
He also said U.P’s GSDP growth rate was 11.6% against India’s GDP growth rate of 9.6% in 2023-2024. Though Khanna did not give GSDP growth projections for 2025-26, the state government’s analysis indicates the GSDP would grow at 11.85% (current prices) and reach ₹30.77 crore by March 31, 2026.
Some key announcements have been made for development of infrastructure and making the youth tech-savvy with funds earmarked for education, entrepreneurship and employment. The budget has 22% allocations for infrastructure development, 13% for education, 11% for agriculture and allied services, 6% for medical and health and 4% for social security programmes.
Four new expressways will be constructed. An allocation of ₹900 crore has been made for construction of a greenfield expressway to connect the Agra-Lucknow expressway with the Ganga Expressway. A sum of ₹50 crore has been earmarked for expansion of the Ganga Expressway from Meerut to Haridwar while another ₹50 crore has been set aside for construction of the Bundelkhand-Rewa Expressway. Besides, ₹461 crore has been earmarked for construction of the defence industrial corridor along the Bundelkhand Expressway.
The budget envisions development of the state as the hub of Artificial Intelligence with setting up of AI City and Cyber Security, Technology Research Translation Park.
An Innovation Fund is being set up to develop a STARTUP ecosystem. The budget has earmarked ₹400 crore for the Rani Laxmi Bai Scooty Scheme to distribute scooties to meritorious girls. Other key announcements include setting up of smart classrooms in government polytechnics, renovation of labs and centre of excellence for education in Artificial Intelligence.
A scrutiny of the budget indicates that the state government’s total receipts are estimated to be ₹7,79,242.65 crore, while its total expenditure will be ₹8,08,736.06 crore, thereby leaving a deficit of ₹29,493.41 crore. The state government proposes to take receipts of ₹9500 crore from the public account to show a net deficit of ₹19,993.41 crore. With an opening balance of ₹20,240.81 lakh crore, the state government has a positive balance of ₹247.40 crore. A fiscal deficit of ₹91,399.80 crore, 2.97% of the GSDP, has been projected.
With estimated revenue receipts of ₹6,62,690.93 crore and projected revenue expenditure of ₹5,83,174.57 crore, the state government’s expected revenue surplus is likely to be ₹79,516.36 crore.
Uttar Pradesh’s indebtedness was 36.7% of the GSDP in 2016-17 and is projected to be 30.8% on March 31, 2025. Budgetary projections indicate the state’s indebtedness will come down to 29.4% by March 31, 2026.
Other announcements include setting up of Khelo India centres for training programmes in three districts in 2025-26 under the One District One Sports scheme. A sum of ₹100 crore has been earmarked to set up a Vedic science centre at Naimisharanya, Sitapur. Emphasis has been laid on development of the tourism sector. Out of the 65 crore tourists who visited Uttar Pradesh in 2024, 14 lakh were said to be foreigners.
The budget has earmarked ₹400 crore for the development of tourist spots, ₹150 for tourist facilities in Ayodhya, ₹125 crore for Mathura and ₹100 crore for Naimisharanya. A sum of ₹100 crore has been earmarked to create wayside amenities for tourists on national highways and ₹50 crore for creating infrastructure for tourists in Chitrakoot region.
Allocation of ₹700 crore has been made under Mukhyamantri Kanya Sumangla Yojana while 31 lakh women have been identified under the Lakhpati Didi scheme. For pension to destitute women, a sum of ₹2980 crore has been earmarked. Labour stations with facilities for labourers will be set up at the district headquarters.
