Uttar Pradesh has presented a ₹9.1 lakh crore Budget for FY27, a 12.2% increase over the previous year. The fiscal deficit has been kept at 3% of GSDP, in line with Finance Commission limits, while spending continues to focus on infrastructure, education, agriculture and employment.
Below are the key numbers.
Budget size
The total outlay stands at ₹9,12,696 crore, up 12.2% year-on-year. The increase is largely driven by higher capital spending and social-sector allocations.
Fiscal deficit
The fiscal deficit is projected at 3% of GSDP, keeping the state within recommended debt limits.
Capital expenditure
Capital expenditure accounts for 19.5% of the Budget, with continued spending on roads, rail connectivity, logistics and other core infrastructure.
Education allocation
Education receives 12.4% of total spending, the largest sectoral allocation. The focus remains on schools, higher education and skill-linked programmes.
Healthcare spending
Around 6% of the Budget is allocated to healthcare, including district trauma centres and upgrades to public health infrastructure.
Agriculture support
Agriculture and allied activities account for 9% of the total outlay. The state also plans to set up an agri-export hub to support farm exports and rural income.
Skill development and employment
New skill training and job placement centres will be set up across districts, many under public-private partnership models. Separate centres are planned for women to improve workforce participation.
Ease of doing business and digital entrepreneurship
Licensing and registration processes will be simplified under the “Jan Vishwas” framework. A digital entrepreneurship scheme has been announced to support technology-driven businesses.
Infrastructure and social projects
Key announcements include:
- Two high-speed rail corridors: Delhi–Varanasi and Varanasi–Siliguri
- Trauma centres in every district hospital
- Girls’ hostels in each district
- Skill programmes for 10,000 tourist guides
- Development of major heritage and tourism sites
What this means for businesses
The Budget continues the state’s recent approach: high capital spending alongside skill and administrative reforms.
Infrastructure-linked sectors
Construction, logistics, cement, steel, EPC and real estate firms may see higher order flows as projects move to execution.
MSMEs and startups
Simplified licensing and the digital entrepreneurship scheme may reduce compliance friction for smaller businesses.
Manufacturing and services
District-level skill centres may improve labour availability over time.
Agri and food processing
The proposed agri-export hub could create new opportunities for processors, exporters and logistics firms.
Advisory note
For businesses operating or expanding in Uttar Pradesh, the key areas to monitor will be infrastructure rollouts, district-level skill programmes and eligibility under the new digital entrepreneurship schemes.
The Budget does not introduce major tax changes, but it signals continued public investment and administrative simplification, both of which can affect long-term business planning.