Uttar Pradesh Budget 2025-26 UPPSC

Comprehensive Analysis of Uttar Pradesh Budget 2025-26

The Uttar Pradesh Budget for the fiscal year 2025-26, presented on February 20, 2025, by Finance Minister Suresh Kumar Khanna, marks a significant step in the state's economic planning. With a total outlay of Rs 8,08,736.06 crore, this budget reflects a 9.8% increase from the previous year's Rs 7,36,437 crore, underscoring the Yogi Adityanath government's focus on development and welfare. This analysis covers key highlights, sector-wise allocations, new schemes, and their expected impact on the state's economy, catering to a diverse audience including students preparing for competitive exams like UPPSC and general readers interested in state finances.

 

Background and Presentation

The budget was presented during the state assembly session, aligning with the fiscal year's start on April 1, 2025. It is the ninth budget under Chief Minister Yogi Adityanath's leadership, with a clear aim to position Uttar Pradesh as a $1 trillion economy. The budget size, at Rs 8,08,736.06 crore, is notably larger than the previous year, indicating a robust financial strategy to address developmental needs.

 

Key Highlights

The budget's key highlights include:

• Total Budget Size: Rs 8,08,736.06 crore, a 9.8% increase, reflecting enhanced fiscal capacity.
• Capital Expenditure Share: 20.5%, focusing on infrastructure, industry, mobility, and investment promotion, up from previous years' trends.
• Fiscal Health Index: Improved from 37.0 during 2014-2019 to 45.9 in 2022-23, positioning UP as a "front-runner state" in fiscal management.
• Economic Target: Aiming to make UP a $1 trillion economy through sector-wise action plans, including agriculture, infrastructure, IT, healthcare, education, tourism, and investment.

 

Sector-wise Allocations

Detailed allocations for major sectors, based on available data, are as follows:

 

Sector	Allocation Percentage	Approximate Amount (Rs Crore)	Specific Details/Amounts
Education	13%	105,136	Plans for ICT labs, smart classrooms, upgraded polytechnics, Centre of Excellence for AI, scooter scheme for meritorious female students.
Healthcare	6%	48,524	Rs 27 crore for new autonomous medical college in Ballia, Rs 25 crore for Balrampur.
Infrastructure	22%	177,922	4 new expressways, Rs 400 crore for State Smart City Scheme, Rs 800 crore for Green Road Infrastructure (Urban), Rs 1000 crore for Urban Flood & Stormwater Drainage, Rs 450 crore for Kanha Gaushala, Rs 50 crore for new urban services.
Agriculture	11%	88,961	Rs 1,050 crore for CM Kisan Durghatna Kalyan Yojana, Rs 509 crore for solar pumps, Rs 124 crore for natural farming, Rs 251 crore for Seed Park Development, Rs 200 crore for UP AgriEase Project.

 

 

New Schemes Introduced

The budget introduces several new and enhanced schemes, reflecting a holistic approach to development:

• Education and Skill Development: Rs 24 crore for laptops/smartphones for government employees, Rs 170 crore for hostels for working women in cities like Varanasi and Gorakhpur, expansion of Atal Residential Schools, and Rs 50 crore for science parks and observatories.
• Healthcare and Social Welfare: Rs 252 crore for UP CM Bal Seva Yojana for Covid-19 orphans, Rs 971 crore for Anganwadi workers' honorarium, Rs 100 crore for CM Sashakt Suposhan Yojana, Rs 4119 crore for integrated child development, Rs 2980 crore for widow pensions, and Rs 700 crore for Mukhyamantri Kanya Sumangala Yojana.
• Women Empowerment: Scooters for meritorious female students, working women hostels, and strengthened Anganwadi centers with nutritional programs.
• Agriculture and Farmers’ Welfare: CM Kisan Durghatna Kalyan Yojana (Rs 1,050 crore), solar pumps under PM Kusum Yojan (Rs 509 crore), natural farming (Rs 124 crore), Seed Park Development (Rs 251 crore), and UP AgriEase Project (Rs 200 crore).
• Infrastructure and Urban Development: 4 new expressways, Rs 400 crore for State Smart City Scheme, Rs 800 crore for Green Road Infrastructure, Rs 1000 crore for urban flood management, and Rs 450 crore for Kanha Gaushala.
• Transport and Connectivity: Rs 400 crore for UP State Road Transport Corporation, Rs 100 crore for medium-range electric buses, and Rs 50 crore for charging stations under CM Gram Jodo Yojana.
• Housing and Rural Development: Rs 4,882 crore for PM Awas Yojana (Gramin), Rs 1,200 crore for CM Awas Yojana (Gramin), and Rs 5,372 crore for MNREGA.
• Energy and Digital Development: 8 new data center parks, Ayodhya as Solar City, and Rs 4,100 crore for Amrit 2.0 Scheme for urban water supply.
• Special Announcements: 2 free LPG cylinders/year for Ujjwala beneficiaries, Rs 400 crore for Smart City Mission, and Rs 50 crore for new urban development programs.

 

Expected Impact on the State's Economy

The budget's allocations and schemes are expected to have a multifaceted impact on Uttar Pradesh's economy:

• Infrastructure Development: With 22% of the budget (Rs 177,922 crore) dedicated to infrastructure, including four new expressways and urban projects, it is likely to create jobs, improve connectivity, and attract investments, potentially boosting economic activities. For instance, the Rs 400 crore for the Smart City Scheme could transform urban centers like Lucknow and Kanpur into economic hubs.
• Education and Skill Development: Allocating 13% (Rs 105,136 crore) to education, with initiatives like ICT labs and scooters for students, is expected to enhance human capital, leading to a more skilled workforce and increased productivity. This could support industries and reduce unemployment rates.
• Healthcare Improvements: With 6% (Rs 48,524 crore) for healthcare, including new medical colleges, the budget aims to improve health outcomes, reducing economic losses from illnesses and enhancing workforce productivity. The Rs 252 crore for Covid-19 orphans under CM Bal Seva Yojana also supports social stability.
• Agricultural Support: Allocating 11% (Rs 88,961 crore) to agriculture, with schemes like CM Kisan Durghatna Kalyan Yojana (Rs 1,050 crore), is expected to ensure food security, support rural livelihoods, and promote sustainable farming, potentially increasing agricultural GDP and rural incomes.
• Welfare Schemes and Social Inclusion: Schemes like widow pensions (Rs 2980 crore) and Mukhyamantri Kanya Sumangala Yojana (Rs 700 crore) are likely to reduce poverty, improve living standards, and create a more inclusive economy, with positive multiplier effects on consumption and demand.

 

Comparison to Previous Budgets

Compared to the 2024-25 budget of Rs 7,36,437 crore, the 2025-26 budget shows a significant increase, particularly in capital expenditure (from 14.8% to 20.5% over recent years), surpassing the national average for major states. This shift, as per PRS India, indicates a stronger focus on long-term infrastructure and economic growth, potentially setting a new benchmark for state budgets.

 

Engagement and Forward-Looking Statement

This budget lays a robust foundation for Uttar Pradesh's economic landscape over the coming year, with potential to drive growth through infrastructure, education, and welfare. Readers, especially those preparing for UPPSC exams, can find this analysis useful for understanding state finances. We encourage you to share your views in the comments below, discussing how these budgetary decisions might shape UP's future economic trajectory.

 

Also Read: Uttar Pradesh Forest Cover ISFR 2023