UP Budget 2026-27: A Comprehensive Overview of Key Initiatives
The Uttar Pradesh government has presented its budget for the fiscal year 2026-27, with a total outlay of Rs 9.12 lakh crore. Finance Minister Suresh Khanna unveiled the budget in the state assembly in Lucknow, with Chief Minister Yogi Adityanath in attendance. This budget focuses on spiritual tourism, youth empowerment, and infrastructure development, aiming to drive economic growth and social welfare across the state.
Promotion of MSMEs and Industrial Growth
To bolster small and medium enterprises, the budget allocates Rs 575 crore for MSME promotion. A significant initiative is the launch of the Sardar Vallabhai Patel Employment and Industrial Zone, designed to foster business expansion and job creation. Additionally, the One District One Cuisine (ODOC) scheme receives Rs 65 crore to enhance production centres, starting with Gorakhpur's Khajni, to promote local culinary heritage and economic activity.
Urban Development and Housing Schemes
Urban infrastructure sees a major boost with Rs 3,500 crore allocated under the Chief Minister's Urban Expansion and New City Promotion Scheme. Notably, new housing schemes are being introduced in Agra after a gap of 33 years, and in Lucknow after 22 years. This marks the first new housing initiative in 35 years for Meerut and the inaugural scheme in Bulandshahr, addressing long-standing housing needs in these regions.
Agriculture, Dairy, and Food Storage
The budget includes a Rs 23 crore proposal for a new dairy plant in Mathura, aimed at boosting the dairy sector. For fisheries, Rs 100 crore is earmarked to establish a state fish wholesale market, an integrated aqua park, and a fish processing centre. Under the world's largest foodgrain storage scheme, Rs 25 crore is allocated for new warehouse construction, enhancing food security and storage capacity.
Education and Healthcare Enhancements
In education, all primary schools will be upgraded to Smart Schools under the Samagra Shiksha Abhiyan. To improve access, Rs 580 crore is set aside for establishing girls' schools in blocks lacking Kasturba Gandhi Balika Vidyalayas. Healthcare initiatives include cashless deliveries through the Janani Shishi Suraksha Karyakram and the deployment of two medical teams per block for health checkups in Anganwadi centres and schools under the National Child Health Programme.
Health Insurance and Mental Health Programs
The budget allocates Rs 2,000 crore for the National Health Protection Mission and Rs 500 crore for the Mukhyamantri Jan Arogya Yojana, covering nearly 50 lakh families. For mental health, all 75 districts will operate under the District Mental Health Programme as part of the National Mental Health Programme, ensuring comprehensive care.
Medical Education and Specialised Care
To expand medical infrastructure, Rs 1,023 crore is allocated for 14 new medical colleges using the PPP model, targeting 16 unserved districts. Specialised care receives Rs 315 crore for a Cancer Institute in Lucknow and Rs 130 crore for free treatment of incurable diseases. The AYUSH sector gets Rs 2,867 crore to support over 3,900 Ayurvedic, Unani, and Homoeopathic hospitals, with modernisation of state-run drug manufacturing units in Lucknow and Pilibhit.
Disease Surveillance and Spiritual Tourism
An Integrated Disease Surveillance Portal is now active for real-time reporting of 16 infectious diseases and COVID-19. For spiritual tourism, substantial funding is directed towards religious centres such as Mirzapur, Varanasi, Vindhyavasini Dham, Naimisharanya, and Mathura-Braj, promoting cultural heritage and tourism.
Youth Employment and Digital Access
Under the Yuva Udyami Vikas Abhiyan, one lakh micro-enterprises will be established annually, offering collateral-free and interest-free loans to young entrepreneurs. To bridge the digital divide, the Swami Vivekananda Yuva Sashaktikaran Yojana has distributed nearly 50 lakh tablets and smartphones to students, enhancing digital literacy and access.
Infrastructure and Textile Industry Growth
The budget proposes over Rs 5,041 crore for handloom and textiles and Rs 27,103 crore for infrastructure and industrial development. A mega integrated textile park, the PM MITRA Park, is being developed in Lucknow district to create a garment hub. Additionally, Rs 4,423 crore is proposed for the Atal Bihari Vajpayee Powerloom Weavers Flat Rate Electricity Scheme and Rs 150 crore under UP-specific textile initiatives.
This budget reflects a holistic approach to development, targeting key sectors to drive progress and improve the quality of life for residents of Uttar Pradesh.
