The Uttar Pradesh government on Wednesday presented a Rs 9.13 trillion Budget for the financial year 2026-27 in the State Assembly, marking an increase of about 12.2 per cent over the previous year’s outlay. The Budget was tabled by Finance Minister Suresh Khanna, who said the government remains fully committed to fiscal management and debt control.

The outlay represents one of the largest state budgets in India and is widely seen as the last full Budget before the 2027 Assembly elections scheduled for early next year.

Fiscal Discipline And Deficit Cap

Presenting the Budget, Khanna said that in line with the recommendations of the 16th Central Finance Commission, which have been accepted by the Centre, the fiscal deficit limit for 2026-27 has been fixed at three per cent. This cap will remain in effect until 2030-31.

The minister reiterated that fiscal prudence remains central to the government’s policy framework, underlining efforts to maintain revenue stability while expanding capital expenditure and welfare initiatives.

The 12.2 per cent increase over last year’s outlay reflects the state’s expanding economic base, with Uttar Pradesh positioning itself as a high-growth economy aiming to scale up infrastructure and human capital investments.

Key Sector Allocations

Khanna detailed allocations for major sectors, stating that education accounts for 12.4 per cent of the total Budget, while health has been allocated six per cent. Agriculture and allied services have been assigned nine per cent of the total outlay.

The government emphasised that capital investment and infrastructure development will remain core priorities to strengthen economic foundations. Roads, connectivity projects and public infrastructure expansion are expected to continue receiving substantial support.

Alongside infrastructure, the government highlighted its focus on youth empowerment and employment generation. The minister stressed that equipping young people with technical and vocational skills is critical for sustainable growth.

Mission Mode Skill Development Push

The Budget outlines large-scale employment-oriented training and skill enhancement programmes to be implemented in mission mode. Existing skill development training centres will have their capacity expanded, while new centres will be established across districts.

Private sector participation will be ensured through public-private partnership models, with skill development and job placement centres planned in multiple districts. Separate centres dedicated to women will also be established to boost their workforce participation.

Officials said the dual focus on infrastructure and skill development is intended to generate employment opportunities while enhancing productivity across sectors.

With a higher outlay, a three per cent fiscal deficit cap and sector-specific allocations clearly defined, the 2026-27 Budget signals the Uttar Pradesh government’s effort to balance fiscal discipline with development ambitions ahead of the upcoming electoral cycle.

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