The Uttar Pradesh government has presented a ₹9.12 trillion Budget for the financial year 2026–27 (FY27), marking a 12.9% increase over the previous year’s ₹8.08 trillion outlay. The Budget signals the state’s continued emphasis on infrastructure-led growth while strengthening allocations to education, agriculture and healthcare.
The Budget was tabled by Finance Minister Suresh Khanna in the Uttar Pradesh Vidhan Sabha, outlining the government’s fiscal priorities for the upcoming year.
Education, Agriculture and Health Get Significant Allocation
Sector-wise, education received the largest share at 12.4% of the total outlay, reflecting the state’s focus on human capital development. Agriculture accounted for 9%, while the medical and health sector was allocated 6% of the total Budget.
The emphasis on education includes funding for school infrastructure, higher education institutions, skill development programmes and teacher capacity enhancement. Agriculture allocations are expected to support irrigation projects, crop productivity initiatives, farmer welfare schemes and rural infrastructure.
Healthcare spending aims to strengthen public hospitals, expand medical facilities in semi-urban and rural areas, and improve access to essential services.
Infrastructure Push to Drive Economic Expansion
Infrastructure continues to anchor Uttar Pradesh’s growth strategy. The enhanced Budget outlay is expected to support investments in roads, expressways, urban development, power infrastructure and logistics corridors.
With Uttar Pradesh positioning itself as a manufacturing and investment destination, capital expenditure remains central to policy direction. The state has been actively developing industrial corridors and improving connectivity to attract private investments across sectors.
A higher capital allocation is also seen as a lever to generate employment and stimulate local economic activity, particularly in tier-II and tier-III districts.
Fiscal Strategy and Growth Momentum
The 12.9% increase in the Budget signals sustained fiscal expansion aimed at accelerating economic growth. Uttar Pradesh, one of India’s largest states by population, has been targeting higher gross state domestic product (GSDP) growth through a mix of infrastructure expansion and social sector investment.
The allocation mix reflects a dual approach: strengthening physical infrastructure while investing in social and rural development. This balanced strategy is intended to improve productivity, raise incomes and expand economic participation.
As the state moves into FY27, the record scale Budget underlines its ambition to maintain development momentum while addressing core sectors that impact long-term growth. The coming fiscal year will test the effectiveness of execution across infrastructure, agriculture and social spending initiatives.
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