Uttar Pradesh's budget is projected to reach Rs 8.33 lakh crore by 2025-26, according to the state's Economic Survey. This marks a significant increase, more than doubling since 2016-17. The Economic Survey for 2025-26, presented in the Assembly by Finance Minister Suresh Kumar Khanna, forecasts the state's economy to reach Rs 36 lakh crore this fiscal year.
Khanna highlighted Uttar Pradesh's growing contribution to the national economy, which has risen from 8.6% in 2016-17 to 9.1% in 2024-25. He also noted the state's emergence as a major hub for agriculture, industry, and technological innovation. The Finance Minister stated that Uttar Pradesh has received industrial investment proposals worth over Rs 50 lakh crore.
The state's fiscal position is described as balanced, with the public debt-to-GSDP ratio declining from 29.3% in 2016-17 to 28.0% in 2024-25, which is lower than national and global averages. Capital expenditure has also increased every year since 2021-22, reaching an expected total of ₹2.52 lakh crore for 2026-27.
A significant portion of the budget is allocated to the health sector, with a record Rs 46,728.48 crore earmarked, representing 6.1% of the total budget. In addition to increased allocations, the Union Budget 2026-27 emphasizes upgrading and expanding healthcare infrastructure and medical education. This includes increasing the capacity of district hospitals by 50% and establishing emergency and trauma centers in all districts. The budget also includes provisions for constructing girls' hostels in each of the state's 75 districts.
The Economic Survey also highlights the growth in per capita income, which has doubled from Rs 54,564 in 2016-17 to Rs 1,09,844 in 2024-25, and is estimated to reach Rs 1.20 lakh for 2025-26. GSDP per capita has also risen from Rs 61,142 in 2016-17 to Rs 1,26,304 in 2024-25.
The Economic Survey indicates the contributions of various sectors to Uttar Pradesh's economy in 2024-25: agriculture and allied services (25.8%), industry (27.2%), and services (47%).
The budget focuses on infrastructure, healthcare, youth, and women, with the aim of simplifying taxes for citizens. The budget incorporates special resources for developing cities with a population of more than five lakh, and infrastructure upgrades are planned for 25 cities in Uttar Pradesh. The Mahatma Gandhi Handloom Scheme will support artisans, and steps to reduce the cost of leather goods will benefit hubs like Kanpur and Agra.