The Uttar Pradesh government has presented its largest-ever budget for 2025-26, with a total outlay of Rs 8.09 lakh crore. The budget focuses on infrastructure, technological advancements, education, urban development, and social welfare initiatives. It marks a 9.8% increase compared to the previous year’s budget, reflecting the government’s commitment to fostering economic growth and modernisation.
Key Allocations and Sectoral Focus
State Finance Minister Suresh Kumar Khanna presented the budget and emphasised its role as a roadmap for balanced development. The budget allocates 22% of the total outlay to development projects, 13% to education, 11% to agriculture and related sectors, and 6% to healthcare.
One of the most notable allocations is Rs 900 crore for the construction of four new expressways to boost connectivity and economic activity in the state. Additionally, Rs 300 crore has been earmarked for transforming primary schools into smart schools, ensuring digital access and modernised learning for students. To enhance tourism, over Rs 400 crore has been allocated under the Chief Minister’s Tourist Places Development Scheme, with Rs 150 crore dedicated specifically to developing tourism infrastructure in Ayodhya.
Technology and Innovation Initiatives
A significant focus of the budget is the advancement of technology and innovation. The government has proposed the establishment of an Artificial Intelligence (AI) City to position Uttar Pradesh as a hub for AI-driven research and development. Additionally, a Technology Research Translation Park focused on cybersecurity has been proposed to drive innovation in digital security. To modernise governance, the state legislative assembly will undergo an upgrade with advanced IT infrastructure.
Education and Skill Development
The budget places substantial emphasis on education, particularly in upgrading learning institutions. The government has proposed the establishment of ICT labs and smart classrooms in primary and secondary schools to enhance digital learning. Government polytechnics will be upgraded with smart classrooms and digital libraries, ensuring students receive industry-relevant training. Additionally, a Centre of Excellence for AI and emerging technologies will be set up to nurture innovation. In a move to promote higher education among young women, a new scheme will provide scooters to meritorious female students.
Urban Development and Infrastructure Expansion
Urban development remains a key priority, with Rs 145 crore allocated to transform 58 urban local bodies into model smart cities. Science City, Science Parks, and Planetariums will also be revamped to foster scientific curiosity among students and researchers.
Healthcare and Social Welfare Measures
In the healthcare sector, the budget proposes Rs 27 crore for an autonomous medical college in Ballia and Rs 25 crore for another in Balrampur. Additionally, six new forensic science laboratories will be established in Ayodhya, Basti, Banda, Azamgarh, Mirzapur, and Saharanpur to strengthen the state’s forensic capabilities.
To support labourers and construction workers, new labour hubs with essential facilities such as canteens, drinking water, bathing areas, and toilets will be developed. Further, financial aid has been announced for farmers, with Rs 1,050 crore allocated to a welfare fund aimed at assisting farmers in cases of accidental death or disability.
Government’s Vision and Opposition’s Criticism
Chief Minister Yogi Adityanath described the budget as a reflection of the ‘double-engine government’s’ commitment to economic expansion and inclusive development. He emphasised that the budget aligns with the Prime Minister’s vision of ‘Sabka Saath, Sabka Vishwas, Sabka Vikas, and Sabka Prayas.’
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However, opposition parties, particularly the Samajwadi Party, criticised the budget for failing to adequately address the concerns of youth, farmers, and marginalised sections of society. They argued that while infrastructure and technology investments are commendable, the budget lacks concrete measures to address pressing social and economic inequalities.