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Uttar Pradesh Budget 2026-27 Allocates ₹26,514 Crore for Urban Development, Smart Cities, and Housing

Yogi Government Focuses on Modern Infrastructure, Swachh Bharat Mission, Regional Growth, and New Housing Projects Across the State
Indian Masterminds Stories

Lucknow: The Yogi Adityanath government has given top priority to urban development in the Uttar Pradesh Budget 2026-27, aiming to build a modern, self-reliant, and prosperous “New Uttar Pradesh”. The budget focuses on municipal development, smart cities, housing, sanitation, transport, and regional planning, laying a strong foundation for sustainable urban growth.

Massive Allocation for Urban Development

Finance Minister Suresh Khanna announced a ₹26,514 crore provision for the Urban Development Department. Since 2017, 113 new urban local bodies have been formed, and 127 existing bodies expanded, ensuring planned and balanced urbanization across the state.

Read also: Uttar Pradesh Presents ₹9.12 Lakh Crore Budget for 2026-27: Focus on Education, Health, Employment, Women, and Infrastructure

Swachh Bharat Mission (Urban) Boosts Clean and Safe Cities

Under Swachh Bharat Mission 1.0 (Urban), 8,99,634 individual toilets have been constructed, along with 69,381 community and public toilets and urinals. All urban local bodies have achieved ODF (Open Defecation Free) status. Additionally, 1,100 public and community toilets have been built across 189 urban local bodies, enhancing safety, convenience, and dignity for women.

Smart City Mission and State-Level Initiatives

Under the Central Government’s Smart City Mission, 10 cities in Uttar Pradesh—Lucknow, Kanpur, Prayagraj, Varanasi, Agra, Aligarh, Bareilly, Jhansi, Saharanpur, and Moradabad—are being developed as smart cities.

The state government has also initiated State Smart City programs for Ayodhya, Firozabad, Gorakhpur, Ghaziabad, Mathura-Vrindavan, Meerut, and Shahjahanpur, aiming to strengthen urban infrastructure and modernize regional cities.

Housing and Urban Planning Gets Rs 7,705 Crore

The budget allocates ₹7,705 crore for housing and urban planning, including ₹3,500 crore for the Chief Minister’s Urban Expansion and New City Promotion Scheme. Under this initiative:

  • Meerut: New housing projects after 35 years
  • Agra: New housing projects after 33 years
  • Lucknow: New housing projects after 22 years
  • Bulandshahr: First-ever industrial development plan launched

Regional Development Authorities to Ensure Balanced Growth

The Kashi-Vindhya Regional Development Authority has been established to ensure coordinated growth in Jaunpur, Chandauli, Ghazipur, Mirzapur, Bhadohi, and Sonbhadra. The Prayagraj-Chitrakoot Regional Development Authority is in the final stages of formation.

Infrastructure, Transport, and New Urban Projects

Significant investments have been proposed to improve urban infrastructure and regional connectivity:

  • Regional Rapid Transit System (RRTS): Delhi-Ghaziabad-Meerut Namo Bharat Train operational
  • Lucknow & other development authorities: ₹800 crore for infrastructure development
  • Meerut, Mathura-Vrindavan, Kanpur: ₹750 crore for new housing and urban plans
  • City Economic Region Plans & Ayodhya Development: ₹100 crore each

Special Provision for Rashtriya Prerna Sthal

The Rashtriya Prerna Sthal in Lucknow, inaugurated by Prime Minister Narendra Modi on December 25, 2025, will receive ₹50 crore in corpus funds for management, security, and maintenance.

Urban Development: A Step Towards “New Uttar Pradesh”

With significant allocations for housing, sanitation, smart city projects, regional planning, and transport infrastructure, the UP government’s budget 2026-27 reflects its commitment to modern, inclusive, and self-reliant urban development, strengthening the foundation for a prosperous and future-ready state.

Read also: Uttar Pradesh Economy Doubles in 8 Years: Historic Economic Survey Projects GDP to Reach ₹36 Lakh Crore


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