Uttar Pradesh has unveiled a record Rs 9.12 lakh crore Budget for 2026–27, the largest in the state’s history. The outlay is 1.5 times bigger than Pakistan’s FY26 federal budget, with major allocations for capex, infrastructure, education, and health.
Chief Minister Yogi Adityanath-led Uttar Pradesh government has presented a record Budget of Rs 9.12 lakh crore for the financial year 2026-27. The Budget, tabled by Finance Minister Suresh Kumar Khanna in the state Assembly, is the largest in the state’s history and is being seen as the last full Budget ahead of the Assembly elections scheduled early next year. Moreover, the UP’s total budget outlay is much higher than Pakistan’s federal government budget for fiscal year 2025–26, which stood at PKR 17.573 trillion (5.69 lakh crore).
This budget is 1.5 times larger than Pakistan’s. With a population of 250 million, Uttar Pradesh’s budget is not only larger than Pakistan’s but also larger than the combined budgets of Bangladesh, Nepal, and Sri Lanka.
CapEx accounts for 19.5 per cent of the total Budget
According to Khanna, the capital expenditure accounts for 19.5 per cent of the total Budget. In line with the recommendations of the 16th Central Finance Commission, accepted by the Centre, the fiscal deficit limit for 2026-27 has been fixed at three per cent, which will remain applicable till 2030-31.
The allocations for education and health stood at 12.4 per cent and six per cent of the total Budget, respectively. Agriculture and allied services have been allocated 9 per cent of the total outlay.
Chief Minister Industrial Area Expansion
For infrastructure and industrial development, Rs 27,103 crore has been proposed, 13 per cent higher than 2025-26. A provision of Rs 5,000 crore has been made for the Chief Minister Industrial Area Expansion and New Industrial Area Promotion Scheme.
The government has also allocated Rs 1,000 crore to implement the Incentive Policy 2023, aimed at attracting foreign direct investment and investments from Fortune 500 companies.
Also, the Uttar Pradesh Shri Ayodhya Teerth Vikas Parishad has been allocated Rs 150 crore for tourism infrastructure development in the Ayodhya region.
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