LUCKNOW: Aiming for a trillion-dollar state economy, the Yogi government 2.0 presented its fourth annual budget (2025-2026) of Rs 8.09 lakh crore, the largest in the state's history.
Overall, it was the ninth budget presented under the current government, which has been in power since 2017, and the second-last of Yogi 2.0 before the 2027 state assembly polls.
Presenting the annual budget for the financial year 2025-26 in the Assembly on Thursday, Uttar Pradesh Finance Minister Suresh Khanna described it as a significant step towards the state’s economic growth and social welfare.
“This budget is 9.8 per cent higher than the 2024-25 budget, meant to accelerate UP’s economic growth. The budget has been designed with a focus on strengthening the state's economy, boosting industrial and infrastructural development, creating employment opportunities, expanding the horizon of education, and also making the state an Artificial Intelligence hub by establishing an Artificial Intelligence City,” said the minister.
He reiterated the UP government’s commitment to propel the state towards becoming a USD 1 trillion economy in sync with its vision of contributing effectively to the national economic growth story.
While allocating 22 per cent of the total budget to infrastructure development, 13 per cent to the education sector, 11 per cent to agriculture and allied sectors, 6 per cent for healthcare, and 4 per cent to social security programmes, the capital outlay stands at about 20.5 per cent of the total estimate.
Khanna also said the UP government had prepared the budget with a main focus on 10 significant sectors, including infrastructure, industry, IT and electronics, health and family welfare, education, tourism, urban development, financial services, energy, capital investment, and agriculture and cadre services.
The 22 per cent allocation of the total budget to strengthen basic infrastructure will be used for road construction, industrial expansion, transport improvements, and attracting investments.
For education, 13 per cent of the budget has been set aside to enhance learning facilities. It proposes to set up ICT labs and smart classes in primary and higher secondary schools, along with digital libraries and smart classrooms in government polytechnic colleges. Special schemes have also been proposed to promote research and development in the state.
Besides promising free scooty to school-going girls, the budget has maintained the provision of two free cylinders under the Ujjwala scheme.
There is also a plan to create a solar city in Ayodhya. Under the solar policy, 3,000 Surya Mitras will be trained. Further, the state plans to generate 22,000 megawatts of solar power in five years.
The minister said that the budget also had the provision of new initiatives to transform UP into a technology hub. A key highlight is the establishment of an ‘Artificial Intelligence City,’ which aims to position the state as a centre for technological innovation.
Additionally, a Technology Research Translation Park focused on cybersecurity will also be set up to enhance digital security. The budget also includes a proposal for a Centre of Excellence to promote advancements in Artificial Intelligence (AI).
To boost science and research, the government has outlined plans for the establishment of Science City, Science Parks, and Planetariums, along with the renovation of old institutions. Special emphasis will be placed on providing modern scientific facilities for students, fostering innovation and research in the state.
The budget speech of the finance minister mentioned the development of ‘Model Smart Urban Bodies’ from 58 urban bodies, with each receiving Rs 2.50 crore, totalling Rs 145 crore. These cities will be equipped with modern facilities, technological innovations, and improved sanitation management.
To support workers, labour camps will be set up in district headquarters, providing canteens, drinking water, bathing areas, and toilets. This initiative aims to improve the living and working conditions of labourers.
The finance minister also mentioned the ongoing ‘Zero Poverty Campaign’ from 2 October 2024. “Under this campaign, the poorest families are identified from every Gram Panchayat of the state. The goal is to increase their annual income to Rs 1,25,000 and ensure they receive basic necessities,” said Khanna.