The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, presented a significant supplementary budget of Rs 24,496 crore for the current financial year during the state assembly's winter session on Monday, December 23, 2025. State Finance Minister Suresh Khanna tabled the budget, which places a strong emphasis on accelerating industrial growth, strengthening healthcare infrastructure, and boosting key sectors like power and urban development.
Budget Size and Strategic Focus
This additional financial provision represents 3.03% of the original state budget of Rs 8.08 lakh crore presented earlier. With its inclusion, the total budget outlay for Uttar Pradesh in the 2025-26 fiscal year now stands at an elevated Rs 8.33 lakh crore. Minister Khanna stated that the supplementary budget aims to sustain the momentum of the state's development trajectory and channel extra resources into essential sectors.
The budget breakdown shows that Rs 18,369 crore is allocated for revenue expenditure, while Rs 6,127 crore is earmarked for capital expenditure, indicating investments in long-term assets and projects.
Major Sector-Wise Allocations
The supplementary budget outlines clear priorities with substantial funds directed towards core areas of development.
Industrial and Infrastructure Push
A major chunk of Rs 4,874 crore is dedicated to industrial development. Key infrastructure projects received significant boosts:
- Rs 1,835 crore for the ongoing Ganga Expressway project.
- Rs 1,246 crore for developing a Greenfield Expressway to connect the Jewar International Airport with the Ganga Expressway.
- Rs 500 crore for the PM Surya Yojana as state subsidy to promote solar energy.
- Rs 85 crore for the PM Mitra Park scheme.
- Rs 400 crore for the sugarcane and sugar mills sector.
Healthcare and Education Strengthening
The health and family welfare sector received an allocation of Rs 3,500 crore. Specific provisions for medical institutions include:
- Rs 120 crore for SGPGIMS, Lucknow.
- Rs 20 crore for Ram Manohar Lohia Institute of Medical Sciences, Lucknow.
- Rs 10 crore for a Cancer Hospital in Lucknow.
- Substantial funds for state medical colleges in Meerut (Rs 10.65 cr), Prayagraj (Rs 6 cr), Agra (Rs 9.5 cr), Kanpur (Rs 8.75 cr), and Gorakhpur (Rs 5 cr).
- An additional Rs 423.80 crore was allocated for medical education.
In education, Rs 613 crore is provisioned for establishing centres of excellence in state polytechnic colleges, and Rs 639.96 crore is set aside for technical education, skill promotion, and innovation.
Other Key Provisions
The supplementary budget also includes diverse allocations for other critical areas:
- Rs 4,521 crore for the power sector.
- Rs 1,758.56 crore for urban development.
- Rs 535 crore for women and child development.
- Rs 200 crore for upcoming panchayat elections.
- Rs 3.24 crore for the Uttar Pradesh Clean Air Management Project.
- Rs 1 lakh for the development of an International Cricket Stadium in Gorakhpur district.
Legislative Reforms for Ease of Doing Business
Alongside the budget, the assembly saw the tabling of the UP Ease of Doing Business (Amendment of Provisions) Act, 2025. Presented by Industrial Development Minister Nand Gopal Gupta Nandi, this bill is a significant step towards trust-based governance. It reforms 10 state laws and decriminalizes over 40 provisions across 14 departments.
Under the new bill, imprisonment provisions are retained only for offenses causing physical harm, fraud, or endangering life. Procedural lapses, documentation errors, or minor violations will now attract only monetary penalties, creating a more business-friendly regulatory environment.
Economic Context and Outlook
Minister Khanna highlighted an optimistic economic projection, noting that the Gross State Domestic Product (GSDP) is now estimated at Rs 31.14 lakh crore, a figure higher than previous assessments. This supplementary budget, with its focused allocations, is designed to capitalize on this growth potential and address immediate developmental needs across industries, healthcare, and infrastructure, setting the stage for Uttar Pradesh's continued economic advancement.
