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UP Govt Likely to Allocate ₹1,900 Crore for Development of 37 Backward Districts in Purvanchal and Bundelkhand

Proposed allocation for 2026–27 under Balanced Regional Development Fund is ₹700 crore higher than current year; ₹2,400 crore also proposed for Rapid Economic Development Scheme
Indian Masterminds Stories

Lucknow: The Uttar Pradesh government is planning a major push for regional development in Purvanchal and Bundelkhand by proposing an allocation of ₹1,900 crore for the financial year 2026–27. The proposed amount is ₹700 crore higher than the allocation in the current financial year, signaling a renewed focus on balanced regional growth.

Boost Under Balanced Regional Development Fund

The proposed allocation will be made under the Balanced Regional Development Fund, which includes the Purvanchal Development Fund and the Bundelkhand Development Fund. A formal proposal to increase the fund by ₹700 crore has been sent to the Finance Department and is currently under deliberation.

In the ongoing financial year, a total of ₹1,200 crore was allocated under this fund—₹800 crore for Purvanchal and ₹400 crore for Bundelkhand.

Read also: Uttar Pradesh Govt to Fix Block-Wise RTE Admission Targets for 2026–27, Officials’ Responsibility Defined

Fund Distribution Proposed for 2026–27

For the next financial year, the government has proposed the following distribution of the ₹1,900 crore allocation:

  • ₹1,400 crore for the Purvanchal Development Fund
  • ₹500 crore for the Bundelkhand Development Fund

The funds will be used for development works across 37 backward districts of the state.

Focus on Infrastructure, Education, Health, and Civic Amenities

The Balanced Regional Development Fund is primarily utilized for projects related to:

  • Infrastructure development
  • Education and health facilities
  • Drinking water and sanitation
  • Roads and connectivity
  • Sports and cultural activities

These initiatives aim to reduce regional disparities and improve the quality of life in backward areas.

₹2,400 Crore Proposed Under Rapid Economic Development Scheme

In addition to the balanced regional fund, the state government has also proposed an allocation of ₹2,400 crore for the Rapid Economic Development Scheme for the next financial year.

During the current financial year, ₹2,350 crore has been earmarked under this scheme.

Priority Projects Under Rapid Economic Development Scheme

The Rapid Economic Development Scheme focuses on strengthening basic infrastructure across the state, including:

  • Roads and bridges
  • Drinking water projects
  • Healthcare and educational institutions
  • Rural electrification and urban lighting
  • ITI and polytechnic buildings
  • Minor irrigation projects

30 Districts Covered Under Purvanchal Development Fund

Development works under the Purvanchal Development Fund are carried out in 30 backward districts, including Prayagraj, Kaushambi, Fatehpur, Pratapgarh, Ayodhya, Barabanki, Sultanpur, Ambedkar Nagar, Amethi, Gorakhpur, Kushinagar, Maharajganj, Deoria, Varanasi, Chandauli, Jaunpur, Ghazipur, Azamgarh, Mau, Ballia, Mirzapur, Bhadohi, Sonbhadra, Basti, Siddharthnagar, Sant Kabir Nagar, Gonda, Bahraich, Balrampur, and Shravasti.

Seven Districts to Benefit Under Bundelkhand Development Fund

The Bundelkhand Development Fund covers seven districts of the region—Jhansi, Jalaun, Lalitpur, Banda, Chitrakoot, Mahoba, and Hamirpur.

Major Push for Balanced Regional Growth

With increased budgetary support and focused planning, the Uttar Pradesh government aims to accelerate development in the most backward regions of the state and ensure more balanced economic and social growth in the coming years.

Read also: UP Diwas 2026: Uttar Pradesh Emerges as India’s Most Trusted Investment Destination Under CM Yogi Adityanath


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