Uttar Pradesh's 10th Yogi Budget Prioritizes Youth Jobs and Infrastructure Growth
In a significant move ahead of the 2027 Assembly elections, the Yogi Adityanath-led government in Uttar Pradesh presented its tenth budget, dubbed "Budget No. 10," with a strong emphasis on infrastructure expansion and employment generation for the state's youth. Finance Minister Suresh Khanna unveiled the budget under the theme "Nav Nirman Ke 9 Varsh" (9 years of rebuilding), highlighting it as the largest ever with a total outlay of Rs 9.12 lakh crore, marking a 12.9% increase from the previous year.
Financial Prudence and Fiscal Discipline at the Forefront
Finance Minister Suresh Khanna underscored the government's commitment to financial discipline, stating that the budget reflects a balanced approach to development, fiscal responsibility, and future preparedness. He detailed the state's progress in managing its debt-to-GSDP ratio, which was reduced from 29.3% in 2016-17 to 27.9% by 2019-20, but rose to 33.4% in 2021-22 due to the Covid-19 pandemic. Through strategic fiscal management, the ratio has been brought down to below 27% in 2024-25 and is targeted to drop further to 23.1% in 2026-27, with an ultimate goal of under 20% for long-term stability.
Khanna also highlighted that the fiscal deficit for 2026-27 is estimated at Rs 1.18 lakh crore, or 2.98% of the Gross State Domestic Product (GSDP), well within the FRBM-prescribed limit of 3%. This, he emphasized, demonstrates the government's dedication to financial prudence, with revenue savings projected at Rs 64,457 crore.
Major Push for Infrastructure and Social Sectors
A substantial portion of the budget, Rs 1.78 lakh crore or nearly 19.5% of the total outlay, has been allocated to capital expenditure (capex), aimed at accelerating infrastructure creation and boosting economic activity. Khanna noted that this increased investment is crucial for driving growth and development across the state.
Social sectors have also received significant attention, with allocations including:
- 12.4% for education
- 6% for health and medical services
- 9% for agriculture and allied sectors
Khanna emphasized that human resource development and enhancing farmers' incomes are central to the government's strategy for sustainable progress.
Employment Generation and Youth-Centric Initiatives
To address youth unemployment, the budget places a strong focus on industrial expansion, emerging technologies, skill development, and entrepreneurship. Key allocations include:
- Rs 550 crore for establishing Sardar Vallabhbhai Patel Employment and Industrial Zones across districts to create local jobs and attract investment, with an additional Rs 25 crore for initial implementation.
- Rs 75 crore for the "One District, One Cuisine" scheme to boost local enterprises and market linkages through government-assisted branding.
- Rs 30 crore for setting up state-level U-Hubs in Lucknow and Gautam Buddha Nagar to strengthen the startup ecosystem and encourage youth-led entrepreneurship.
Embracing Digital Economy and Future Technologies
The budget also highlights the digital economy and future technologies as key drivers for employment. Notable provisions include:
- Rs 225 crore for the Uttar Pradesh AI Mission (UP-AIM)
- Rs 100 crore for developing a Data Centre Cluster
- Rs 10 crore for establishing a State Data Center Authority
These initiatives aim to position Uttar Pradesh as a hub for innovation and technological advancement, creating new job opportunities in high-growth sectors.
Political Reactions and Future Outlook
At a post-budget press conference, Chief Minister Yogi Adityanath praised the budget for reflecting the aspirations of the people, noting that the state's budget size has more than tripled over the past nine years. He stated, "Uttar Pradesh has successfully transformed its perception over the past nine years, emerging from policy paralysis and changing perceptions to present UP as a land of unlimited potential."
However, opposition leader and Samajwadi Party president Akhilesh Yadav criticized the budget as a "farewell budget" for the Yogi government, predicting the BJP's exit after the 2027 elections. Yadav argued that the budget is large only in size and not pro-people, alleging that the government has failed to utilize even 50% of its allocations on average. He questioned, "If the outlay is so large, why is the government unable to spend it? This shows a failure of governance."
As Uttar Pradesh gears up for the upcoming elections, this budget sets the stage for a contentious political debate, with the government touting its achievements in infrastructure and job creation while the opposition challenges its effectiveness and implementation.
