The Uttar Pradesh government is preparing to present a nearly ₹9 lakh crore budget for the financial year 2026–27 on February 11, with a strong thrust on development works. According to government estimates, around ₹2.5 lakh crore is likely to be earmarked as capital expenditure, marking one of the highest-ever allocations for infrastructure and growth-oriented projects in the state.
An Election-Year Budget Signal
With the Assembly elections scheduled next year, the budget is being seen as a strategic document aimed at accelerating development while addressing public expectations. Compared to the current financial year, allocation for development works could increase by nearly ₹25,000 crore, and several new schemes are also expected to be announced.
Focus on Welfare and Inclusive Growth
The state government has already indicated that the upcoming budget will be welfare-centric and inclusive. Finance Minister Suresh Kumar Khanna has reiterated that the budget will prioritise “sabki khushhali”—prosperity for all. During preparatory meetings, officials were clearly instructed to place public welfare schemes at the centre of budget planning.
Budget Preparations in Final Stage
Sources say that, based on proposals received from various departments, the Finance Department has almost completed budget preparations. Minor changes may still be made after consultations with the Chief Minister. Political observers believe that, given the electoral context, the government may announce public-friendly measures to build momentum ahead of the polls.
Capital Expenditure on a Steady Rise
Uttar Pradesh’s spending on development works has seen a consistent upward trend over the past five years:
- 2021–22: ₹1.55 lakh crore
- 2022–23: ₹1.59 lakh crore
- 2023–24: ₹1.87 lakh crore
- 2024–25: ₹2.03 lakh crore
- 2025–26: ₹2.25 lakh crore
- 2026–27 (estimated): ₹2.52 lakh crore
As per the report prepared under the Mid-Term Fiscal Restructuring Policy–2025, the total budget size for 2026–27 could touch ₹9.05 lakh crore, with development expenditure alone accounting for over ₹2.52 lakh crore.
Development Before the Polls
With three-tier panchayat elections and the Assembly elections on the horizon, the government may further expand the size of the development budget. The message is clear: Uttar Pradesh is gearing up for an aggressive push on infrastructure, welfare and growth—well ahead of the electoral test.
