Uttar Pradesh Budget 2025-26 highlights: ₹8.08 lakh crore outlay, big push for AI city, smart classes

Uttar Pradesh Finance Minister Suresh Kumar Khanna on Thursday presented a ₹8,08,736-crore Budget for the financial year 2025-26 in the state assembly, a 9.8 per cent increase from the previous year’s outlay.

In his Budget speech, Khanna highlighted the government’s commitment to balanced growth, with 22% of the total outlay allocated for development purposes, 13% for education, 11% for agriculture and allied services, and six per cent for the health sector.

"We have focussed on research, development and Information Technology in the Budget," said Khanna.

Addressing a press conference after the presentation of the Budget, Uttar Pradesh Chief Minister Yogi Adityanath said that the Budget holds great significance as it marks the Amrit Mahotsav of the implementation of the Indian Constitution and the establishment of Uttar Pradesh in January 1950.

"It focuses on the upliftment of youth, women, and farmers, with a clear vision inspired by Prime Minister Narendra Modi's priority for the deprived sections of the society," said Adityanath.

Highlights from the Uttar Pradesh Budget 2025-26:

• Khanna said that Uttar Pradesh’s Gross State Domestic Product (GSDP) is projected to reach ₹27.51 lakh crore in 2024-25.

• He said that the state’s economy has doubled since 2017, with per capita income increasing from ₹52,671 in 2016-17 to ₹93,514 in 2023-24.

• The state government proposed several new initiatives, including the development of an Artificial Intelligence (AI) City and a technological research park focused on cybersecurity.

• The Budget also outlined modernisation plans for educational institutions, including the introduction of smart classes and laboratories in schools and polytechnics.

• As part of urban development, the government proposed developing 58 municipal bodies into ideal smart cities, with a provision of ₹2.50 crore per municipal body, amounting to a total of ₹145 crore.

• The Uttar Pradesh Building and Other Construction Workers Welfare Board will work on establishing workers’ welfare centres at district headquarters, providing facilities such as canteens, drinking water, and sanitation amenities.

• The government also pledged support for workers’ welfare and poverty alleviation under the ‘Zero Poverty Abhiyan’.

• The finance minister assured that the state’s fiscal deficit remains within the prescribed limits, and efforts to increase development expenditure while reducing indebtedness have been successful.

• He cited a Reserve Bank of India (RBI) report, noting that Uttar Pradesh’s share of tax receipts is among the highest in India.