Lucknow: Uttar Pradesh is poised to receive a substantial allocation of approximately Rs 4 lakh crore from the Union Budget for the financial year 2025-26. This significant funding comes as part of the state’s increased share in central taxes, coupled with substantial grants and interest-free loans aimed at accelerating development initiatives across the region.
According to State Finance Minister Suresh Kumar Khanna, Uttar Pradesh has been allocated Rs 2.55 lakh crore from central taxes for FY 2025-26, marking an increase from Rs 2.18 lakh crore in the original budget for 2024-25. The revised estimates presented by Union Finance Minister Nirmala Sitharaman indicate that the state will receive Rs 2,30,854.62 crore in the current fiscal year, reflecting an additional Rs 12,000 crore over the initial allocation. This upward trend suggests an estimated Rs 24,000 crore increase in central tax receipts for the next fiscal year.
The state finance department is in the final stages of budget preparations, with the presentation scheduled during the legislative session starting on February 17. These allocations are anticipated to accelerate Uttar Pradesh’s economic growth, supporting various sectors including infrastructure, healthcare, education, and urban development.
Key Highlights from the Union Budget for Uttar Pradesh:
Increased Share in Central Taxes: Uttar Pradesh’s enhanced share in central taxes will bolster its revenue, enabling increased funding for development projects and welfare schemes.
Interest-Free Loans for Capital Expenditure: The central government has allocated Rs 1.5 lakh crore for 50-year interest-free loans to states. Uttar Pradesh stands to benefit significantly, focusing on infrastructure development and reforms.
Urban Development Initiatives: An Urban Challenge Fund of Rs 1 lakh crore has been announced to support initiatives like ‘Cities as Growth Hubs’ and ‘Creative Redevelopment of Cities.’ Uttar Pradesh’s urban centers are set to gain from improved infrastructure and services.
Extension of Jal Jeevan Mission: The mission has been extended until 2028, with enhanced focus on rural water supply infrastructure. This will ensure better water availability in Uttar Pradesh’s rural areas.
Support for Research and Innovation: An allocation of Rs 20,000 crore will promote private sector-driven research and development. This initiative aims to foster innovation, benefiting educational and research institutions in the state.
Healthcare Enhancements: Plans to set up 200 Day Care Cancer Centres nationwide in 2025-26 will significantly improve healthcare access in Uttar Pradesh, offering better cancer care facilities.
Revamped PM SVANidhi Scheme: The revamped scheme will provide enhanced loans and credit facilities to street vendors and small businesses in Uttar Pradesh, improving their economic stability.
Welfare Schemes for Dalit Women: Recognizing Uttar Pradesh’s large Dalit population, the budget includes specific schemes targeting the welfare of Dalit women, promoting social equity.
Expansion of ITI Seats: With Uttar Pradesh hosting the highest number of ITIs in the country, the increase in seats will boost vocational training and employability among the youth.
UDAN Scheme Expansion: The third phase of the UDAN scheme will enhance air connectivity in Uttar Pradesh, benefiting cities like Kanpur, Kushinagar, and Varanasi.
Kisan Credit Card Scheme: The loan limit under this scheme has been increased to Rs 5 lakh, benefiting over 2.25 crore farmers in Uttar Pradesh, supporting agricultural growth.
AI and Medical Education: The budget proposes 6,500 new seats in IITs, three new AI centers, and a significant increase in medical education seats, enhancing educational opportunities in the state.
Digital Connectivity for Schools and Health Centres: Plans to connect primary schools and health centers to the internet will improve access to quality education and healthcare services across Uttar Pradesh.
Support for Leather Industry Workers: New incentives for the leather industry will benefit workers in cities like Kanpur and Agra, aiming to create 22 lakh jobs and boost exports.
Insurance for Gig Workers: A new insurance scheme for gig workers, offering health coverage and social security benefits, will support a growing segment of the workforce in Uttar Pradesh.
These initiatives underscore the Union Budget’s comprehensive approach to fostering Uttar Pradesh’s growth, addressing key sectors such as infrastructure, healthcare, education, and economic development.
