Uttar Pradesh Finance Minister Suresh Kumar Khanna presented the state’s Rs 8,08,736 crore budget for the 2025-26 fiscal year in the State Assembly on February 20, marking a 9.8 per cent increase from the previous year’s allocation. The budget prioritizes research, development, digital innovation, and infrastructure expansion while reinforcing the government’s commitment to social welfare and economic growth.
The budget earmarks 22 per cent of its total outlay for developmental projects, 13 per cent for education, 11 per cent for agriculture and allied services, and 6 per cent for healthcare, reflecting a balanced approach toward progress and public welfare.
Recognising the role of technology in governance and economic development, the government has announced the establishment of an Artificial Intelligence (AI) City and a Cyber Security Research Park, both aimed at fostering innovation and attracting tech investments in the state.
Infrastructure development remains a central theme in the budget, with the construction of four new expressways aimed at boosting connectivity across Uttar Pradesh. Additionally, the government has committed to transforming 58 municipalities into smart cities, ensuring improved urban infrastructure, better governance, and enhanced public services.
A major green energy initiative has also been unveiled, with the creation of a Solar City in Ayodhya, alongside the establishment of eight data centre parks, positioning Uttar Pradesh as a leading hub for digital industries and sustainable development.
The government has introduced several new initiatives to support students, farmers, and vulnerable communities.
Students: Meritorious students will receive scooters to aid mobility, and Rs 900 crore has been allocated for pre- and post-10th scholarships for students from the general category. Additionally, Rs 24 crore has been set aside to provide laptops and smartphones to revenue personnel to facilitate digital governance.
Women and Vulnerable Groups: The Destitute Women Pension Scheme will receive Rs 2,980 crore, ensuring financial support for needy women. The Chief Minister Kanya Sumangala Scheme, which promotes girls’ education and welfare, has been allocated Rs 700 crore. Additionally, Rs 1,424 crore has been earmarked for the Disabled Maintenance Grant Scheme, enhancing support for differently-abled individuals.
Farmers: To provide security to the farming community, the government has allocated Rs 1,050 crore under the Farmer Welfare Fund, ensuring financial assistance in cases of accidental death or disability.
Under the Ujjwala Scheme, eligible families will receive two free LPG cylinders annually, continuing the government’s efforts to improve access to clean cooking fuel.
The government has announced initiatives aimed at poverty eradication and workers’ welfare. The Uttar Pradesh Building and Other Construction Workers Welfare Board will set up labour bases at district headquarters, equipped with canteens, drinking water, and sanitation facilities, to improve working conditions for laborers.
In a significant move toward poverty eradication, the government has formally launched the ‘Zero Poverty Abhiyan’, which was initiated on October 2, 2024. The program aims to identify the poorest families in each Gram Panchayat and ensure their annual income reaches at least Rs 1.25 lakh, fostering economic upliftment at the grassroots level.
With a comprehensive approach balancing technological advancement, infrastructure development, and social welfare, the 2025-26 Uttar Pradesh Budget aims to strengthen the state’s economic landscape while enhancing the quality of life for its citizens.
