UP Board Announces ₹8.09 Lakh Crore Budget with Major Reforms in Education & IT

Uttar Pradesh Finance Minister Suresh Kumar Khanna presented the ₹8.08 lakh crore Budget for the 2025–26 financial year in the state assembly. The Budget emphasizes research, development, and Information Technology, with key allocations directed toward infrastructure, education, health, and agriculture.

Key Budget Allocations

The Uttar Pradesh government has allocated:

• 22% of the Budget for development projects,

• 13% for education,

• 11% for agriculture and allied services,

• 6% for healthcare initiatives.

The Budget outlay has increased 9.8% from the ₹7.36 lakh crore allocated in 2024–25. New schemes worth ₹24,863.57 crore have also been introduced to boost the state’s growth.

Major Announcements in Budget 2025–26

1. Artificial Intelligence City and Cyber Security Research Park

   
   

   The government has announced the establishment of an AI City to boost technological advancements and attract investments. Additionally, a cyber security research park will be developed to enhance cyber defense capabilities.

2. Education and Digital Learning Initiatives

   
   

   To improve digital learning, the government has allocated funds for the modernization of the Legislative Assembly, development of smart classes, and the establishment of well-equipped laboratories in schools and polytechnics.

3. Urban Development & Smart Municipalities

   
   

   The Budget proposes transforming 58 municipal bodies into ideal smart municipalities. A provision of ₹2.5 crore per municipal body, totaling ₹145 crore, has been allocated to enhance urban infrastructure.

4. Workers’ Welfare & Infrastructure

   
   

   The Uttar Pradesh Building and Other Construction Workers Welfare Board has been tasked with developing worker bases at district headquarters. These facilities will include canteens, drinking water, bathrooms, and toilets to improve the living conditions of laborers.

5. Zero Poverty Abhiyan

   
   

   The government has launched the ‘Zero Poverty Abhiyan’ on October 2, 2024, in honor of Gandhi Jayanti. Under this scheme, the poorest families in each Gram Panchayat will be identified, and efforts will be made to ensure they have a minimum annual income of ₹1.25 lakh.

6. Economic Growth & Financial Management

   
   

   Minister Suresh Khanna highlighted Uttar Pradesh’s improving economic status, stating that the state has been recognized as a “front runner state” by NITI Aayog. The focus remains on increasing development expenditure while maintaining fiscal discipline.

7. Tax Revenues & GSDP Growth

   
   

   According to a Reserve Bank of India (RBI) report, Uttar Pradesh ranks among the top states in tax revenue collections, reflecting efficient financial management. The state’s Gross State Domestic Product (GSDP) is projected to reach ₹27.51 lakh crore in 2024–25, nearly double what it was in 2017.

8. Rising Per Capita Income

   
   

   The per capita income in Uttar Pradesh has risen significantly from ₹52,671 in 2016–17 to ₹93,514 in 2023–24, demonstrating improved economic conditions and higher earning potential for residents.

Conclusion

The UP Budget 2025–26 reflects the government’s commitment to economic growth, digital transformation, and welfare initiatives. By prioritizing technology, infrastructure, and financial stability, the state aims to continue its upward trajectory and enhance the quality of life for its citizens.