UP tables ₹9.13 lakh crore Budget for FY27; fiscal deficit capped at 3% till 2031

Uttar Pradesh Finance Minister Suresh Khanna on Wednesday presented a ₹9.13 lakh crore Budget for the financial year 2026-27 in the state Assembly, marking a 12.2% increase over the previous year’s outlay and outlining the government’s focus on fiscal prudence, infrastructure expansion and employment generation. 

Fiscal deficit for FY27

While tabling the Budget, Khanna reiterated the state government’s commitment to sound fiscal management and debt control. He said the fiscal road map has been aligned with the recommendations of the 16th Central Finance Commission, which have been accepted by the Union government. In line with these recommendations, the fiscal deficit for FY27 has been capped at 3%, a limit that will remain applicable until 2030-31. 

Highlighting sectoral allocations, the minister said education and health remain priority areas in the state’s development agenda. Education has been allocated 12.4% of the total Budget while health accounts for 6%. Agriculture and allied services have been earmarked 9% of the overall outlay, reflecting the government’s continued focus on rural and capital investment and infrastructure development agrarian growth. 

Capital investment and infra development

Khanna underlined that capital investment and infrastructure development are critical to accelerating economic growth. He stressed that alongside physical infrastructure, human capital development, particularly among youth, will be a key driver of the state’s long-term progress. 

The minister said individuals equipped with technical skills or trade expertise are less likely to face unemployment. To this end, the government will implement large-scale employment-oriented training and skill enhancement programmes in mission mode on a priority basis. Efforts will be made to strengthen the skill base of youth in tandem with formal education. 

Skill development centres

He announced that the capacity of existing skill development centres will be expanded and new centres will be established across the state. The initiative will encourage private sector participation, with skill development and job placement centres to be set up in multiple districts under the public-private partnership (PPP) model. Dedicated centres for women will also be established to enhance their participation in the workforce. 

UP's Economic Survey at a glance

The Budget presentation follows the release of Uttar Pradesh’s maiden Economic Survey on Monday. According to the Survey, the state’s economy has more than doubled over the past eight years, from ₹13.30 lakh crore in 2016-17 to over ₹30.25 lakh crore in 2024-25. Khanna informed the Assembly that the state’s economy is projected to touch ₹36 lakh crore in the current fiscal year, underscoring Uttar Pradesh’s accelerating growth trajectory.