Lucknow, March 4: Chief Minister Yogi Adityanath emphasized that Uttar Pradesh has not introduced any new taxes over the last eight years while maintaining its commitment to fiscal discipline and economic growth. Presenting the state budget for 2025-26, he stated that each financial plan since 2017 has been designed with a thematic focus, reflecting the state’s evolving priorities.
The Chief Minister noted that the 2024-25 budget was dedicated to Lord Shri Ram and the welfare of all, while the 2025-26 budget prioritizes the upliftment of the poor, farmers, youth, and women. Inspired by the Sanatan philosophy of Sarve Bhavantu Sukhinah (May all be happy), the budget aligns with Prime Minister Narendra Modi’s vision of giving priority to the underprivileged.
Unprecedented Budget Expansion and Developmental Outreach
The 2025-26 budget stands at an unprecedented Rs 8.08 lakh crore, marking a 9.8% increase from the previous year’s allocation. CM Yogi underscored that this expansion is not merely an increase in expenditure but a testament to the government’s commitment to inclusive development, infrastructural growth, and economic progress.
Revenue receipts for 2025-26 are projected at Rs 6.62 lakh crore, with tax revenue estimated at Rs 5.50 lakh crore. The state’s tax revenue is anticipated to reach Rs 2.95 lakh crore, with its share in central taxes standing at Rs 2.55 lakh crore. Uttar Pradesh ranked second nationwide in revenue receipts from its tax sources in 2022-23, 2023-24, and 2024-25.
The state’s per capita income has surged from Rs 52,671 in 2016-17 to Rs 93,514 in 2023-24, reflecting a sustained trajectory of economic growth. Meanwhile, the fiscal deficit for 2025-26 is estimated at Rs 91,399 crore, equivalent to 2.97% of the state’s Gross State Domestic Product (GSDP), well within the FRBM limits.
Uttar Pradesh Leading in Digital Transactions and Financial Inclusion
Highlighting the digital revolution, CM Yogi revealed that digital transactions in the state surged from Rs 122.84 crore in 2017-18 to Rs 1,024.41 crore by 2024-25 (as of December 2024). With more than half of these transactions conducted via UPI, Uttar Pradesh now ranks first in the country in digital payments. The government has extended internet and Wi-Fi services to villages, boosting digital banking accessibility.
Direct Benefit Transfer (DBT) has played a crucial role in curbing corruption, ensuring that funds reach beneficiaries directly. CM Yogi compared DBT to the gada (mace) of Bajrang Bali, stating that it strikes down dishonesty and inefficiency. Over 207 government schemes now function through DBT, with Rs 1.11 lakh crore transferred to over 9 crore beneficiaries in the past year alone, leading to an estimated savings of Rs 10,000 crore.
Record Foreign Direct Investment and Banking Growth
CM Yogi pointed out that from April 2000 to June 2017, Uttar Pradesh attracted Rs 3,303 crore in Foreign Direct Investment (FDI). However, between 2017 and 2024, the state saw a dramatic increase, with FDI inflows reaching Rs 14,008 crore, further cementing Uttar Pradesh as a key investment destination.
The state has also witnessed significant banking sector growth, with total bank deposits rising from Rs 12.75 lakh crore in 2016-17 to Rs 29.66 lakh crore in 2024-25. The Credit-Deposit (CD) ratio has also improved from 44-45% in 2016-17 to 61% in the present fiscal year.
Declining Unemployment and Economic Strengthening
CM Yogi highlighted a steady decline in Uttar Pradesh’s unemployment rate, which ranged between 17-19% under the previous government but has now dropped to 3.4% in 2023-24. The state fares better than others, with unemployment rates standing at 6.7% in Jammu & Kashmir, 7% in Kerala, and 6.1% in Punjab.
Taking a swipe at the previous administration, CM Yogi pointed out that the Samajwadi Party (SP) government spent Rs 15 crore organizing an event to distribute Rs 20 crore in unemployment allowances, reflecting inefficiency and mismanagement.
Commitment to Ramrajya: Transparent and People-Centric Governance
Uttar Pradesh has been a revenue-surplus state for the past five years, an achievement CM Yogi attributes to strict financial discipline and digital transparency. He emphasized that the government has managed to sustain development without imposing new taxes, ensuring that resources are efficiently utilized for public welfare.
Also Read | Uttar Pradesh Unveils Ambitious Rs 8-Lakh Crore Budget for 2025-26
The Chief Minister invoked a verse from Tulsidas, likening taxation to the Sun drawing water from the sea in an imperceptible manner but returning it as rain, bringing prosperity to all. He reaffirmed his government’s commitment to this philosophy, ensuring that every rupee collected is reinvested into tangible development, such as highways, bridges, schools, and hospitals.
With a 9.2% share of India’s GDP, Uttar Pradesh is now the second-largest state economy. The state’s GSDP has doubled from Rs 12.75 lakh crore in 2017 to Rs 27.51 lakh crore in 2024-25, with a target of Rs 30.77 lakh crore in 2025-26. With robust infrastructure growth, digital expansion, and a commitment to fiscal discipline, CM Yogi’s government aims to transform Uttar Pradesh into a developed and self-reliant state.