The Uttar Pradesh Government has placed strong emphasis on urban transformation in the Budget 2026–27, allocating ₹26,514 crore to the Urban Development Department to build a modern, self-reliant, and prosperous “New Uttar Pradesh”.
Presenting the budget, Finance Minister Suresh Kumar Khanna outlined a comprehensive strategy focusing on municipal development, housing, sanitation, smart cities, and regional planning to support sustainable urban growth across the state.
Expanding Urban Local Bodies for Planned Growth
Since 2017, the state has created 113 new urban local bodies and expanded 127 existing ones, a move aimed at ensuring balanced urbanisation and better civic management in rapidly growing towns and cities.
Swachh Bharat Mission (Urban) Strengthens Sanitation
Under Swachh Bharat Mission 1.0 (Urban), the state has constructed 8,99,634 individual toilets along with 69,381 community and public toilets and urinals, enabling all urban local bodies to achieve Open Defecation Free (ODF) status. Additionally, 1,100 public and community toilets have been developed across 189 urban local bodies to improve sanitation and enhance safety, especially for women.
Smart City Mission Gains Momentum
Ten cities—Lucknow, Kanpur, Prayagraj, Varanasi, Agra, Aligarh, Bareilly, Jhansi, Saharanpur, and Moradabad—are being developed under the Central Government’s Smart City Mission. The state has also launched its own smart city initiatives in Ayodhya, Firozabad, Gorakhpur, Ghaziabad, Mathura-Vrindavan, Meerut, and Shahjahanpur to modernise infrastructure in emerging urban centres.
₹7,705 Crore for Housing and Urban Planning
The budget earmarks ₹7,705 crore for housing and urban planning, including ₹3,500 crore under the Chief Minister’s Urban Expansion and New City Promotion Scheme. The initiative will see:
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New housing projects in Meerut after 35 years
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New housing projects in Agra after 33 years
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New housing projects in Lucknow after 22 years
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The first-ever industrial development plan launched in Bulandshahr
Regional Development Authorities to Balance Growth
To ensure coordinated regional development, the Kashi-Vindhya Regional Development Authority has been established for Jaunpur, Chandauli, Ghazipur, Mirzapur, Bhadohi, and Sonbhadra, while the Prayagraj-Chitrakoot Regional Development Authority is in the final stages of formation.
Investments in Infrastructure and Connectivity
The budget proposes several investments to strengthen infrastructure and transport:
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Operationalisation of the Delhi-Ghaziabad-Meerut Regional Rapid Transit System (Namo Bharat Train)
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₹800 crore for infrastructure development by Lucknow and other development authorities
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₹750 crore for housing and urban planning projects in Meerut, Mathura-Vrindavan, and Kanpur
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₹100 crore each for City Economic Region Plans and Ayodhya development initiatives
Support for Rashtriya Prerna Sthal
The Rashtriya Prerna Sthal in Lucknow, inaugurated by Prime Minister Narendra Modi on December 25, 2025, will receive ₹50 crore as a corpus fund for its management, security, and maintenance.
Vision for a Modern Urban Uttar Pradesh
Officials said the significant allocation reflects the government’s commitment to creating cleaner, better-connected, and economically vibrant cities. By investing in housing, sanitation, smart infrastructure, and regional planning, the state aims to lay a strong foundation for inclusive and future-ready urban development aligned with its broader vision of a “New Uttar Pradesh.”