Key allocations include ₹1.06 lakh crore for education,₹50,550 crore for healthcare, and ₹89,353 crore for agriculture and rural development, signaling the state’s commitment to the well-being and development of its citizens.
Key Budget Allocations for FY26
Finance Minister Suresh Khanna presented the state’s budget in the assembly, highlighting a focus on infrastructure, social welfare, and sectoral growth. The largest share, a staggering ₹1.79 lakh crore (22% of the total budget), has been allocated for infrastructure development. This includes:
• ₹61,070 crore for the energy sector• ₹21,340 crore for irrigation
• ₹24,000 crore for heavy and medium industries
• ₹25,308 crore for urban development
• ₹7,403 crore for housing and urban planning
• ₹3,152 crore for civil aviation
In addition, the budget earmarks ₹28,478 crore for new expenditure categories, ensuring continued progress across diverse sectors.
Education
Education, which receives 13% of the total budget, is set for a significant boost. The government plans major investments in primary and higher education, infrastructure development for schools, and measures to improve learning outcomes. Uttar Pradesh continues to be one of the top states in terms of educational spending, aiming to provide better facilities and quality education for students.
Healthcare
The healthcare sector has been allocated over ₹50,550 crore (6% of the budget), with a focus on improving medical facilities across the state.
Notably, the government has announced free medical treatment of up to ₹5 lakh under the Chief Minister Jan Arogya Abhiyan for specific groups, including home guards, PRD personnel, village watchmen, and teachers working on honorariums. The state has also made strides in enhancing medical education with plans for 1,500 new medical seats, 13 autonomous medical colleges, and three new colleges under a Public-Private Partnership (PPP) model.
In a remarkable transformation, Uttar Pradesh is no longer regarded as a “BIMARU” state but has emerged as a leader in medical services. The state now boasts 80 medical colleges, two AIIMS, and other prominent institutions, including IMS-BHU and Jawaharlal Nehru Medical College.
Agriculture and Rural Development
The agriculture and rural development sector has been allocated ₹89,353 crore, accounting for 11% of the budget. The funds will support various initiatives, including horticulture, animal husbandry, dairy, fisheries, cooperatives, rural development, and the Namami Gange project. With a commitment to enhancing rural water supply, the state aims to uplift its agricultural and rural communities, fostering sustainable growth in these areas.
The Vision for 2025-26: Empowering All Sections of Society
Chief Minister Yogi Adityanath emphasized that the 2025-26 budget reflects the principles of “Sarve Bhavantu Sukhinah” (May all be happy) and is dedicated to uplifting farmers, youth, and women in line with the ideals of India’s Sanatan culture. Inspired by Prime Minister Narendra Modi’s vision for prioritizing the deprived, the budget focuses on transforming Uttar Pradesh into a powerful economic force, with an emphasis on Trade, Tourism, Technology, Tradition, and Talent.
The state is on track to achieve a one-trillion-dollar economy, with the 2025-26 budget serving as a crucial step toward reaching this ambitious goal. The Chief Minister also honored Dr. B.R. Ambedkar by announcing the creation of the Baba Saheb Bhimrao Ambedkar Memorial and Cultural Center in Lucknow, promoting his principles of social equity.
A Future-Oriented Budget
With a focus on social empowerment and economic transformation, the Uttar Pradesh budget for 2025-26 is designed to lay the foundation for the state’s growth over the next 25 years. As the state’s GDP is expected to grow significantly, from ₹12.89 lakh crore in 2017-18 to ₹27.51 lakh crore in 2024-25, this budget sets an ambitious roadmap for continued development, benefiting all sections of society.