Uttar Pradesh Budget 2026-27: ₹9.13 Lakh Crore Outlay with Focus on Education, Health and Skill Development

Uttar Pradesh Budget 2026-27: ₹9.13 Lakh Crore Outlay with Focus on Education, Health and Skill Development

Uttar Pradesh Finance Minister Suresh Khanna has presented the state's largest-ever budget of ₹9.13 lakh crore (₹9,12,696.35 crore to be exact) for the financial year 2026-27 in the State Legislative Assembly. This represents a significant 12.2% increase over the previous year's budget allocation.

Fiscal Discipline Maintained

The government has maintained strict fiscal discipline by capping the fiscal deficit at 3% of the Gross State Domestic Product (GSDP), in line with the recommendations of the 16th Finance Commission. This 3% fiscal deficit limit will remain in effect until 2030-31, ensuring long-term macroeconomic stability and responsible financial management.

Key Sector Allocations

The budget prioritizes human development and infrastructure with the following major allocations:

• Education: 12.4% of the total budget has been allocated to education, making it the top priority sector. This includes ₹77,622 crore for basic education, ₹22,167 crore for secondary education, ₹6,591 crore for higher education, and a massive 88% increase in vocational training funds.
• Health: 6% of the total budget (₹37,956 crore) has been earmarked for medical, health and family welfare services – a 15% increase over the previous year.
• Agriculture: 9% allocation for agriculture and allied sectors to support farmers and rural development.
• Capital Expenditure: 19.5% of the total outlay is dedicated to capital expenditure, focusing on roads, expressways, power infrastructure, and logistics development.

Special Focus on Skill Development and Women Empowerment

The budget places strong emphasis on creating employment opportunities through mission-mode skill development initiatives:

• Expansion of existing Industrial Training Institutes (ITIs) and establishment of new skill training centres across the state.
• Setting up of 12 new ITIs exclusively for women, with 47 of the existing 286 ITIs adding dedicated women's branches.
• Promotion of Public-Private Partnership (PPP) based skill and placement centres to enhance employability.
• Special skill development centres designed specifically to uplift women economically and increase female workforce participation.
• Technical education allocation increased by 72% to ₹2,365 crore compared to the previous year.

Welfare and Social Development

The budget also includes significant provisions for social welfare:

• ₹14,953 crore allocated for social welfare schemes, marking an 8% increase over 2025-26.
• Enhanced support for old age pensions and farmer pension schemes.
• Special focus on destitute women pension, Kanya Sumangala Yojana, women hostel construction, and child protection schemes.
• ₹150 crore provision for minority welfare programmes.

Overall, the Uttar Pradesh Budget 2026-27 reflects a balanced approach between fiscal prudence and developmental priorities, with special attention to education, healthcare, agriculture, infrastructure, and inclusive growth through skill development and women empowerment initiatives.