Uttar Pradesh Finance Minister Suresh Kumar Khanna on February 20, 2025, tabled the state’s biggest-ever budget of ₹8.09 lakh crore for the 2025-26 fiscal year. The ambitious budget targets to drive Uttar Pradesh towards a $1 trillion economy by prioritizing infrastructure, agriculture, development, education, and technological advancements.
Major Allocations and Sectoral Priorities
Infra Development: A considerable 22% of the budget has been allocated towards infrastructure projects such as constructing four new expressways. This expenditure emphasizes the state’s focus on strengthening connectivity and nurturing economic development.
Education: The education department gets 13% of the overall budget. Significantly, ₹400 crore has been assigned for the ‘Rani Laxmibai Scooty Yojana,’ giving scooters to qualified girls who are seeking higher education to encourage girl education and empowerment.
Agriculture and Allied Services: By allocating 11% of the budget to agriculture, the government has under the Farmer Welfare Fund reserved ₹1,050 crore for providing monetary aid to farmers in the event of accidental death or disability. Also, ₹2,000 crore has been reserved for stray cattle maintenance, which shows the commitment of the state towards agricultural and rural growth.
Healthcare: The healthcare sector receives 6% of the budget, emphasizing the enhancement of medical facilities and services in the state.
Technological Upgrades and Urban Development
With a step towards technological development, ₹5 crore has been granted for the creation of an Artificial Intelligence (AI) city in Lucknow. This will enable Uttar Pradesh to become a destination for AI research and development, drawing investments and promoting technological growth.
Urban development is also given importance, to make Ayodhya a solar city. As per the state solar policy, 3,000 ‘Surya Mitras’ will be trained, and there is a five-year target to produce 22,000 megawatts of solar energy, encouraging sustainable energy and environmental protection.
Social Welfare Initiatives
The budget contains several social welfare initiatives:
Ujjwala Scheme: Distribution of two free LPG cylinders to the beneficiaries to decrease the economic burden of cooking fuel costs for poor families.
Chief Minister’s Mass Marriage Scheme: A fund of ₹550 crore has been allocated for giving monetary aid for daughters’ marriage to all categories to help bring about social welfare and family support.
Scholarship Schemes: ₹900 crore is kept aside for pre-matric and post-matric scholarship schemes for students belonging to the general category in order to encourage education and to help economically weaker section students.
Economic Growth and Future Outlook
The 2025-26 budget reflects a 9.8% increase from the previous year’s ₹7.36 lakh crore budget, indicating the state’s robust economic growth trajectory. With a capital expenditure ratio of 20.5%, the budget emphasizes long-term investments in infrastructure and development projects.
Chief Minister Yogi Adityanath was optimistic that this budget would make Uttar Pradesh a growth driver for India, turning it into a top state with a robust economy and a better quality of life for its people.
