UP Budget 2026-27: ₹9.12 lakh cr outlay with 19.5% capex, fiscal deficit capped at 3%

Uttar Pradesh Finance Minister Suresh Khanna on Wednesday presented a ₹9,12,696.35 crore Budget for 2026-27 in the Legislative Assembly, marking a 12.2 per cent increase over the previous year. The fiscal deficit has been capped at 3 per cent in line with the 16th Central Finance Commission recommendations, while capital expenditure accounts for 19.5 per cent of the total outlay, signalling a strong push towards infrastructure-led growth.

Education has been allocated 12.4 per cent of the total Budget, while health has received 6 per cent. Agriculture and allied services account for 9 per cent of the outlay, with an agri-export hub proposed under the UP-AGREES project to boost farm exports and rural income. The government said the allocations reflect its focus on balanced and sectoral development.

A major thrust has been placed on skill development and employment generation. The Budget proposes expansion of training centres, establishment of new district-level facilities, separate centres for women and PPP-based skill development and job placement centres. The move aims to enhance workforce participation and strengthen employment avenues across the state.

On infrastructure and economic reforms, the government announced simplification of licensing and registration under the “Jan Vishwas” principle and a Digital Entrepreneurship Scheme to promote technology-driven enterprises. Two high-speed rail corridors — Delhi–Varanasi and Varanasi–Siliguri — have been included, along with plans for developing Sarnath and Hastinapur, setting up emergency and trauma centres in every district hospital, building girls’ hostels in each district and providing skill enhancement training for 10,000 tourist guides.