UP Budget 2026-27: A Milestone for Economic Transformation
Uttar Pradesh Chief Minister Yogi Adityanath, on Wednesday, proclaimed the 2026-27 state budget as a pivotal step toward realizing the ambitious target of a $1 trillion economy. In a speech delivered after Finance Minister Suresh Khanna presented the budget in the state Assembly, Adityanath emphasized that Uttar Pradesh has successfully evolved from a state plagued by policy paralysis into a region brimming with unlimited potential.
From BIMARU to Revenue Surplus: A Nine-Year Journey
Adityanath, who noted he is the first chief minister to present a tenth consecutive budget in Uttar Pradesh, highlighted the state's remarkable fiscal turnaround. Over the past nine years, Uttar Pradesh has transitioned from being categorized as a BIMARU state—a term historically used to describe economically lagging regions—to achieving revenue surplus status. This transformation, he asserted, stems from disciplined financial management, including the elimination of tax evasions and leakages, without imposing any additional taxes during this period.
Key Budget Highlights and Strategic Initiatives
The 2026-27 budget is structured around the theme of safe women, capable youth, happy farmer, employment for everyone, and prosperity through investment in technology. Adityanath outlined several critical components:
- Capital Expenditure: More than Rs 2 lakh crore has been allocated for capital expenditure, aimed at generating substantial employment opportunities.
- New Schemes: Initiatives worth Rs 45,000 crore have been introduced to bolster various sectors.
- Fiscal Discipline: The Fiscal Responsibility and Budget Management (FRBM) limit has been reduced to 27, with a goal to further lower it to 23, enhancing fiscal stability.
Additionally, the budget includes announcements for an AI Mission and the development of a data centre cluster for emerging technologies. These efforts are designed to skill the youth and create more job opportunities, positioning Uttar Pradesh as both an employment generator and an investment destination.
Infrastructure and Governance Enhancements
Adityanath underscored the importance of rule of law in achieving fiscal discipline and attracting investments. He highlighted improvements in security, smart policing, and an instant justice system, which benefit both citizens and investors. The government is also planning to expand the Ganga Expressway, extending it to Chandauli-Sonbhadra on one end and from Meerut to Haridwar on the other, to boost connectivity and economic growth.
Furthermore, the establishment of a State Data Authority was announced to address inconsistencies in data presentation across departments. This authority will facilitate real-time data recording and monitoring, aiding in future planning and ensuring transparency.
Uttar Pradesh's Economic Standing and Future Prospects
Claiming that Uttar Pradesh now ranks among the top three economies in India, Adityanath expressed confidence in the state's continued growth trajectory. The budget's focus on emerging technologies, women empowerment, industry, and infrastructure is expected to drive sustainable development and prosperity.
In summary, the 2026-27 Uttar Pradesh budget represents a comprehensive strategy to cement the state's position as a leader in economic innovation and social welfare, moving decisively away from its past challenges toward a future of unlimited potential.
