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Uttar Pradesh State Budget 2026-27 Analysis

Budget Estimate

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Uttar Pradesh FY 2026-27

Uttar Pradesh State Budget 2026-27 Budget at a Glance

Total Receipts

Rs 7.29 lakh crore

+25.7%

Total Expenditure

Rs 8.51 lakh crore

+26.1%

Fiscal Deficit

3.0%

Rs 1.18 lakh crore

Capital Expenditure

Rs 1.86 lakh crore

+10.1%

Tax Revenue

Rs 6.03 lakh crore

+133.9%

Interest Payments

Rs 68,921 crore

8% of expenditure

Uttar Pradesh Revenue Receipts 2026-27

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 6.03 lakh crore (95.8%)
Non-Tax Revenue
Rs 26,754 crore (4.2%)

Uttar Pradesh Expenditure Breakdown 2026-27

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 78.1%
Capital Expenditure 21.9%

Top 10 Departments by Allocation

Fiscal Deficit as % of GSDP โ€” Uttar Pradesh 2026-27

The fiscal deficit for Uttar Pradesh in 2026-27 is 2.98% of GSDP (Rs 1.18 lakh crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Uttar Pradesh is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 68,921 crore consume 8.1% of total expenditure.

Uttar Pradesh State Budget 2026-27 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 7.32 lakh crore100%
1. Revenue ReceiptsRs 7.29 lakh crore99.5%
a. Own Tax RevenueRs 6.03 lakh crore82.4%
b. Non-Tax RevenueRs 26,754 crore3.7%
B. Total ExpenditureRs 8.51 lakh crore100%
1. Revenue ExpenditureRs 6.64 lakh crore78.1%
2. Capital ExpenditureRs 1.86 lakh crore21.9%
of which: Interest PaymentsRs 68,921 crore8.1%
C. Fiscal DeficitRs 1.18 lakh crore2.98% of GSDP

Source: Uttar Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Uttar Pradesh Department-wise Expenditure 2026-27

Top departments by allocation in Uttar Pradesh for 2026-27

Department โ†•Total โ†“Share
1. Education, Sports, Arts and Culture
Rs 1.08 lakh crore
12.7%
2. Energy
Rs 56,621 crore
6.7%
3. Health and Family Welfare
Rs 53,326 crore
6.3%
4. Transport
Rs 50,391 crore
5.9%
5. Rural Development
Rs 49,044 crore
5.8%
6. Social Welfare and Nutrition
Rs 42,263 crore
5.0%
7. Police
Rs 41,898 crore
4.9%
8. Agriculture and Allied Activities
Rs 30,938 crore
3.6%
9. Urban Development
Rs 27,532 crore
3.2%
10. Irrigation and Water Resources
Rs 18,290 crore
2.1%

Uttar Pradesh Budget 2026-27 Analysis & Highlights

Key Highlights

  • Gross budget of Rs 9,12,696 crore for 2026-27 โ€” India's largest state budget, up 12.9% (Rs 1,03,960 crore) over the 2025-26 BE of Rs 8,08,736 crore
  • Total expenditure excluding debt repayment is Rs 8,50,901 crore, a 26% jump over the 2025-26 revised estimate of Rs 6,74,755 crore
  • Fiscal deficit targeted at Rs 1,18,481 crore โ€” 2.98% of GSDP, just inside the 3% FRBM ceiling; the 2025-26 RE stood at Rs 91,670 crore (3.0%)
  • Revenue surplus of Rs 64,458 crore (1.6% of GSDP), narrowing from Rs 74,348 crore (2.4% of GSDP) in the 2025-26 revised estimate
  • Capital outlay of Rs 1,77,744 crore (+11% over RE); including Rs 8,686 crore of loans, total capital expenditure is Rs 1,86,430 crore โ€” about 22% of spending
  • The budget assumes GSDP of Rs 39,75,500 crore โ€” 28% nominal growth over the 2025-26 RE, nearly triple the 10% the Union Budget assumes nationally
  • Own tax revenue budgeted at Rs 3,34,491 crore, up 48% over the revised estimate; State GST (45% of own taxes) is projected to grow 79%
  • Education is the largest sector at Rs 1,08,154 crore (+28%), yet its 12.8% share of expenditure trails the 14.5% all-state average
  • Rural development jumps 59% to Rs 49,044 crore and agriculture rises 51% to Rs 30,938 crore โ€” the two steepest sector increases
  • Committed expenditure of Rs 3,53,743 crore absorbs 49% of revenue receipts: salaries Rs 1,82,921 crore, pensions Rs 1,01,901 crore (+43%), interest Rs 68,921 crore
  • Outstanding liabilities projected to fall from 27.6% to 23.1% of GSDP in one year โ€” driven mainly by the 28% GSDP denominator jump, not lower borrowing
  • New schemes worth Rs 43,565 crore, including the Rs 575 crore Sardar Vallabh Bhai Patel Employment and Industrial Zone and Rs 400 crore Rani Lakshmi Bai Scooty Yojana
  • Water and irrigation get big-ticket provisions: about Rs 22,452 crore for the Jal Jeevan Mission and Rs 18,290 crore for irrigation and flood control

Compare Uttar Pradesh Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2022-232023-242024-252025-262026-27
Total Expenditureโ€”โ€”โ€”Rs 6.75 lakh croreRs 8.51 lakh crore
Revenue Receiptsโ€”โ€”โ€”Rs 5.8 lakh croreRs 7.29 lakh crore
Capital Expenditureโ€”โ€”โ€”Rs 1.69 lakh croreRs 1.86 lakh crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”3.0%2.98%
Own Tax Revenueโ€”โ€”โ€”Rs 2.58 lakh croreRs 6.03 lakh crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Uttar Pradesh State Budget 2026-27

The Uttar Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Uttar Pradesh Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Uttar Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states