Uttar Pradesh Budget 2025-26: Key Highlights and Summary

The Uttar Pradesh Budget 2025-26, presented by State Finance Minister Suresh Kumar Khanna on February 20, 2025, has a total outlay of ₹8,08,736 crore. This reflects a 9.8% increase from the ₹7,36,437 crore budget of 2024-25. The budget focuses on research and development, Information Technology, infrastructure, welfare schemes, and urban development. Special emphasis has been placed on education, agriculture, healthcare, and artificial intelligence.

Key Highlights of the Uttar Pradesh Budget 2025-26

1. Budget Overview

• Total Budget: ₹8,08,736 crore (₹8.08 lakh crore).
• Increase from Previous Year: 9.8% rise from ₹7,36,437 crore (FY 2024-25).
• New Expenditure Categories: ₹28,478 crore earmarked for new initiatives.

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2. Sector-wise Allocations

Sector	Allocation
Infrastructure Development	₹1,79,921 crore (22%)
Education	₹1,06,000 crore (13%)
Agriculture & Rural Development	₹89,353 crore (11%)
Healthcare	₹50,550 crore (6%)
Social Welfare & Women Empowerment	₹7,980 crore
New Technology (AI, Cybersecurity, Data Centers, etc.)	₹5,000 crore

3. Major Announcements & Initiatives

A. Infrastructure Development (₹1.79 lakh crore, 22%)

The largest share of the budget is dedicated to building roads, expressways, smart cities, and modern urban facilities. Key allocations include,

• Energy Sector: ₹61,070 crore for power generation and distribution improvements.
• Urban Development: ₹25,308 crore for smart city projects and urban expansion.
• Housing & Urban Planning: ₹7,403 crore for affordable housing.
• Irrigation: ₹21,340 crore to enhance water management and agricultural irrigation.
• Civil Aviation: ₹3,152 crore to boost air connectivity and airport expansion.
• New Expressways: Construction of four new expressways to improve state-wide connectivity.
• Ayodhya Solar City: A major solar energy initiative to develop Ayodhya as a model solar city.
• 8 New Data Center Parks: Strengthening digital infrastructure and cybersecurity.

B. Education (₹1.06 lakh crore, 13%)

• Uttar Pradesh remains one of the top states in education investment, with a focus on,
• Smart Classrooms & Labs: Upgrading digital learning infrastructure in schools and polytechnic institutions.
• Laptops & Smart Devices: ₹24 crore allocated for providing laptops/smartphones to state revenue personnel for digital governance.
• Scholarships: ₹900 crore allocated for pre-10th and post-10th scholarships for the general category.
• Meritorious Student Support: Scooties for female students who excel academically.

C. Healthcare (₹50,550 crore, 6%)

The government is strengthening public health services and medical education, with key provisions,

• Free Medical Treatment: Up to ₹5 lakh for home guards, PRD personnel, village watchmen, and honorarium teachers under the Chief Minister Jan Arogya Abhiyan.

New Medical Colleges

• 13 new autonomous medical colleges.
• 1,500 new medical seats added to existing institutions.
• 3 medical colleges under Public-Private Partnership (PPP) model.
• Medical Infrastructure Expansion
• 80 medical colleges across the state.
• 2 AIIMS campuses (Gorakhpur and Rae Bareli).
• Top institutions like IMS-BHU and Jawaharlal Nehru Medical College playing a crucial role.

D. Agriculture & Rural Development (₹89,353 crore, 11%)

• The state government is committed to boosting rural livelihoods and improving farm productivity. Major allocations include,
• Farmer Welfare Fund: ₹1,050 crore for financial assistance in case of accidental death or disability.
• Horticulture & Animal Husbandry: Investments in dairy, fisheries, and cooperative sectors.
• Water Conservation: Expansion of the Namami Gange project to ensure clean water in rural areas.
• Rural Economy Boost: Zero Poverty Abhiyan launched on Gandhi Jayanti (October 2, 2024) to identify poorest families and increase their annual income to ₹1.25 lakh.

E. Social Welfare & Women Empowerment

• Chief Minister’s Mass Marriage Scheme: ₹550 crore allocated to support the marriage of daughters (all categories).
• Destitute Women Pension Scheme: ₹2,980 crore to ensure financial security for widows and abandoned women.
• Chief Minister Kanya Sumangala Scheme: ₹700 crore to support girls’ education and welfare.
• Disabled Maintenance Grant Scheme: ₹1,424 crore for differently-abled citizens.

F. Artificial Intelligence & Cybersecurity Initiatives

• Artificial Intelligence City: The government will develop an AI hub to promote tech-driven growth.
• Cybersecurity Research Park: A dedicated facility for cyber defense and innovation.

G. Other Key Initiatives

• Ujjwala Scheme: Two free LPG cylinders per family.
• Legislative Assembly Modernization: Improving digital governance in state operations.
• Workers’ Welfare: Building labor welfare centers at district headquarters with canteens, drinking water, and sanitation facilities.
• Ambedkar Memorial: Construction of Baba Saheb Bhimrao Ambedkar Memorial and Cultural Center in Lucknow.

4. Vision for Uttar Pradesh’s Economic Growth

• Target: Transform Uttar Pradesh into a $1 trillion economy.
• Economic Growth: The state’s GDP grew from ₹12.89 lakh crore (2017-18) to ₹27.51 lakh crore (2024-25), showcasing a strong upward trend.

Strategic Development Focus,

• Trade
• Tourism
• Technology
• Tradition
• Talent

Chief Minister Yogi Adityanath highlighted that Uttar Pradesh is no longer a “BIMARU” state but a leader in economic progress, reflecting the transformative impact of progressive policies.

Summary/Static	Details
Why in the news?	Uttar Pradesh Budget 2025-26: Key Highlights and Summary
Total Budget	₹8.08 lakh crore (9.8% increase from FY 2024-25)
New Expenditure	₹28,478 crore earmarked for new initiatives
Infrastructure Development	₹1.79 lakh crore (22% of budget)
Key Infrastructure Allocations	₹61,070 crore (Energy), ₹25,308 crore (Urban Development), ₹7,403 crore (Housing), ₹21,340 crore (Irrigation), ₹3,152 crore (Civil Aviation)
Education	₹1.06 lakh crore (13% of budget)
Education Initiatives	Smart classrooms, scholarships, scooties for meritorious girls, laptops for digital governance
Healthcare	₹50,550 crore (6% of budget)
Key Healthcare Announcements	Free ₹5 lakh treatment under CM Jan Arogya Abhiyan, 13 new medical colleges, 1,500 new medical seats
Agriculture & Rural Development	₹89,353 crore (11% of budget)
Key Agriculture Initiatives	₹1,050 crore Farmer Welfare Fund, Zero Poverty Abhiyan, Namami Gange expansion
Social Welfare & Women Empowerment	₹7,980 crore allocated
Key Social Initiatives	₹550 crore for Mass Marriage Scheme, ₹2,980 crore for Destitute Women Pension, ₹700 crore for Kanya Sumangala Scheme
AI & Cybersecurity Initiatives	AI City development, Cybersecurity Research Park
Other Key Initiatives	2 free LPG cylinders per family (Ujjwala), Ambedkar Memorial in Lucknow, Labor Welfare Centers
Economic Growth Target	Transform Uttar Pradesh into a $1 trillion economy
Strategic Focus Areas	Trade, Tourism, Technology, Tradition, Talent
GDP Growth	₹12.89 lakh crore (2017-18) → ₹27.51 lakh crore (2024-25)
Vision	“Sarve Bhavantu Sukhinah” – Inclusive growth and development for all