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In run-up to 2027, UP Budget may have larger chunk for ongoing projects
Presiding over a meeting convened to step up preparations for the annual budget, Yogi Adityanath asked his team to focus on public welfare, development and financial discipline in the state’s annual budget
LUCKNOW As the Yogi 2.0 government prepares to table its last annual budget (2026-2027) on February 11, it faces a dual task – providing additional funds to complete ongoing projects, implement the chief minister’s announcements, and curate a populist narrative ahead of the 2027 UP Assembly elections. The primary challenge lies in balancing ‘people-oriented’ spending with the state’s commitment to fiscal discipline.
While chief minister Yogi Adityanath can leverage supplementary budgets later in the year to maintain momentum, the government is now in a high-stakes race against time to fulfill existing promises and ensure that long-standing schemes are fully operational before the polls.
As the state government gives final touches to its annual budget, all eyes will be on the allocation of funds to UP in the Union Budget that finance minister Nirmala Sitharaman will present in the Parliament February 1. The state government will make needful changes in making allocations to various schemes in UP to ensure that matching funds for the central schemes, as may be announced in the Union Budget, are available.
Presiding over a meeting convened to step up preparations for the annual budget, Yogi Adityanath asked his team to focus on public welfare, development and financial discipline in the state’s annual budget. The state government, which began preparations for the budget in the third quarter of 2025-2026, continues doing so to spur growth amid the challenges of next- gen GST reforms. UP finance minister Suresh Khanna has time and again asserted that the state government’s tax collections would continue to grow as people would spend more following the overhaul in GST structure.
The state government had presented an annual budget of ₹8.08 lakh crore for 2025-2026. It presented (December 2025) a supplementary budget for ₹24,496.98 crore. Efforts are now underway to ensure that most of the funds earmarked in the annual budget and the supplementary budget are used before the closing of the financial year on March 31 and make a visible impact of government schemes on the ground for greater connect with people.
As the state government aims at making UP a $1-trillion economy by 2029-2030, the chief minister has consistently been monitoring the progress made to achieve this objective. He is also monitoring the implementation of government schemes along with utilisation of budgetary funds.
The state government had requested the National Statistical Commission (NSC) to bring out a needful amendment to the methodology to work out the gross state domestic product (GSDP) of UP. The NSC assured that needful changes would be made in the methodology by February 2026. The state government hopes that UP’s GST, which reached ₹29.6 lakh crore at the end of 2024-2025, would go up substantially when calculated with new methodology.
