Lucknow:
On Thursday, February 20, 2025, in the Uttar Pradesh state assembly, Finance Minister Suresh Kumar Khanna presented a comprehensive budget of Rs 8,08,736 crore for the financial year 2025-26. This budget marks a significant 9.8% increase from the previous year’s allocation of Rs 7,36,437 crore.
The budget is heavily focused on research and development, as well as Information Technology, reflecting the state’s commitment to technological advancement and economic growth. Khanna highlighted that 22% of the budget is dedicated to development, 13% to education, 11% to agriculture and related services, and 6% to health.
In his address, Khanna praised Chief Minister Yogi Adityanath’s leadership and underscored the state’s progress, including the ongoing Maha Kumbh, which he described as a cultural, religious, and rare astronomical event symbolizing India’s ancient heritage.
Key initiatives include the development of an Artificial Intelligence City and a technological research park specializing in cyber security. The state also plans to modernize the Legislative Assembly and establish smart classrooms and laboratories in schools and polytechnics. Additionally, 58 municipal bodies will be transformed into model smart municipalities, with each receiving Rs 2.50 crore, totaling Rs 145 crore.
The Uttar Pradesh Building and Other Construction Workers Welfare Board will establish labor bases at district headquarters, providing amenities such as canteens, drinking water, and sanitation facilities. The ‘Zero Poverty Abhiyan,’ launched on October 2, 2024, aims to identify the poorest families in each Gram Panchayat and raise their annual income to at least Rs 1,25,000.
Khanna emphasized Uttar Pradesh’s financial improvements, noting that the state has been recognized by NITI Aayog as a “front runner” in health, capital expenditure, and economic growth. He assured that the fiscal deficit remains within limits and credited efforts to boost development spending while reducing debt. The state’s economy, which faced challenges in 2017, has now doubled, with the Gross State Domestic Product (GSDP) projected to reach Rs 7.51 lakh crore in 2024-25, and per capita income rising from Rs 52,671 in 2016-17 to Rs 93,514 in 2023-24.
Other significant allocations include Rs 400 crore for the Rani Laxmibai Scooty Yojana to provide scooties to meritorious girl students, and provisions under the Mukhya Mantri Gramodyog Rojgar Yojna to provide bank loans to 800 beneficiaries, creating employment for 16,000 people.
