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Uttar Pradesh’s ₹24,496.98-crore supplementary budget gives priority to growth, welfare
Uttar Pradesh’s GSDP is projected at ₹31.14 lakh crore, higher than earlier assessments, says finance minister Suresh Khanna, citing Central govt estimates
With the focus on industrial development, energy, health and urban development, the Uttar Pradesh government presented a supplementary budget of ₹24,496.98 crore for the current financial year during the winter session of the state assembly on Monday.
The proposed supplementary budget amounts to 3.03% of the state’s original budget of ₹8,08,736.06 crore tabled in February.
“With the inclusion of the supplementary provisions, the total budget outlay for the financial year has now increased to ₹8,33,233.04 crore,” finance minister Suresh Khanna said in the assembly.
Khanna said key sectors linked to economic growth and public welfare have been prioritised in the supplementary budget.
“It has been introduced to sustain the momentum of development, provide additional resources to essential sectors, and fast-track schemes in response to emerging needs,” he said.
“The supplementary budget includes provisions of ₹18,369.30 crore for revenue expenditure and ₹6,127.68 crore for capital expenditure. The focus is on meeting revenue needs while simultaneously reinforcing infrastructure through enhanced capital investment,” he added.
Highlighting sectoral priorities, Khanna said, “Allocations include ₹4,874 crore for industrial development, ₹4,521 crore for the power sector, ₹3,500 crore for health and family welfare, ₹1,758.56 crore for urban development, and ₹639.96 crore for technical education.”
“The budget also gives due attention to social and future-oriented sectors, with ₹535 crore earmarked for women and child development, ₹500 crore for UPNEDA to promote solar and renewable energy, ₹423.80 crore for medical education, and ₹400 crore for the sugarcane and sugar mill sector,” he said.
The finance minister reaffirmed that the Yogi Adityanath government has consistently adhered to the provisions of the FRBM (Fiscal Responsibility and Budget Management ) Act and has maintained strict fiscal discipline. Citing Government of India estimates, he said Uttar Pradesh’s Gross State Domestic Product is projected at ₹31.14 lakh crore, higher than earlier assessments.
“This is significant as we are a revenue surplus state,” he said.
The FRBM Act is aimed at ensuring the government’s financial discipline, long-term stability by controlling deficits (fiscal & revenue), reducing debt, and ensuring transparent, prudent public fund management through laws and targets. Key principles include reducing deficits to GDP ratios, eliminating revenue deficits, limiting borrowing, and increasing transparency.
He told the House that after deducting the central share of ₹2,197.24 crore to be received for centrally sponsored schemes, the net additional burden on the state’s consolidated fund would be ₹22,299.74 crore.
The additional expenditure would be financed by achieving the set targets of tax and non-tax revenue and by curbing unproductive expenditure.
He further explained that supplementary grants are presented before the legislature when approved funds prove insufficient to meet actual expenditure during a financial year, or when new requirements and significant changes in schemes necessitate legislative approval.
In 2024-25, the Uttar Pradesh government had presented two supplementary budgets – the first of ₹12,209.93 crore in July and the second supplementary budget ₹17,865.72 crore in December 2024. This took the size of the state’s total budget size for 2024-25 to ₹7,66,512.65 crore.
The original budget for 2025-26 of ₹8,08,736 crore is 9.8% more than the original annual budget of ₹7,36,437 crore for 2024-25 excluding the two supplementary budgets brought in July and December 2024.
