UP budget growth: Doubling in 9 years, 1/7th of Union government’s spending

Uttar Pradesh’s budget has more than doubled over the past nine years, reaching an estimated ₹8.33 lakh crore for 2025-26 , making it larger than the combined budgets of Telangana (~₹3.2 lakh crore) and Andhra Pradesh (~₹3.2 lakh crore) . In comparison, the Indian Union Budget for FY 2025-26 is around ₹50.65 lakh crore, making UP’s spending roughly one-seventh of the central government’s budget , highlighting the state’s growing fiscal clout.

Finance Minister Suresh Kumar Khanna , presenting the Economic Survey in the assembly, said the budget expanded by ₹4.86 lakh crore since 2016-17, compared to an increase of ₹2.34 lakh crore in the previous eight-year period. The state’s public debt-to-GSDP ratio fell from 29.3% in 2016-17 to 28% in 2024-25, lower than national and global averages, reflecting a balanced fiscal position.

In the health sector , allocations reached a record ₹46,728.48 crore , accounting for 6.1% of the total budget. Improvements include increased medical infrastructure, reduced out-of-pocket expenses, and rising institutional deliveries, which climbed 18% to 41 lakh in 2024-25. Non-institutional deliveries declined by 50%, and the number of medical colleges rose from 36 in 2017 to 81, including both government and private institutions.

Tourism in UP also saw strong growth, with arrivals more than doubling to 156.18 crore visitors in 2025, including a record 66.3 crore attendees at the Prayagraj Mahakumbh.

The agriculture sector contributed 24.9% to the state economy, with foodgrain production reaching 737.4 lakh metric tonnes and UP’s share of national output rising from 18.1% to 20.6%. Paddy production saw area and output increase by 19.4% and 23.6%, respectively. UP has around 65,000 operational food processing units , employing nearly 2.55 lakh youths, positioning the state as a growing food processing hub.

According to the Periodic Labour Force Survey 2023-24, 53.2% of the workforce is engaged in agriculture and allied sectors, including 78.8% of working women. The state has also implemented a zero-tolerance policy toward crime to strengthen women’s safety.

UP’s budget, now larger than the combined spending of AP and Telangana and about 1/7th of India’s central budget, demonstrates the state’s scale of public investment in infrastructure, health, agriculture, and social development, reflecting its position as India’s largest state economy in fiscal terms.