The Yogi Adityanath-led Uttar Pradesh government has unveiled a historic budget for 2025-26, setting the stage for the state’s transformation into a $1 trillion economy by 2029. With a total allocation of ₹8.08 lakh crore, a 9.8% increase from last year, the budget aims to bolster infrastructure, artificial intelligence (AI), welfare, and economic growth. If executed as planned, Uttar Pradesh could soon surpass the economies of Netherlands and Saudi Arabia. Ambitious? Absolutely. Achievable? Time will tell.
Massive Infrastructure Boost: Expressways Lead the Charge
The budget prioritizes infrastructure development, with a staggering ₹1.65 lakh crore earmarked for capital expenditure. Among the headline projects are four new expressways that will enhance connectivity across the state:
- Chitrakoot Link Expressway
- Jhansi Link Expressway
- Jewar Link Expressway
- Vindhya Expressway
These additions complement the ₹50,000 crore already allocated for expressway expansion. Given that well-connected states attract massive investments, this move is expected to position UP as a prime destination for businesses and industries.
Beyond expressways, the budget dedicates ₹2,800 crore to constructing new roads, ₹3,000 crore for road maintenance, and another ₹3,000 crore for urban expansion projects. Clearly, the state government is betting big on infrastructure as the backbone of its economic dream.
AI and Smart Cities: UP’s Tech Ambitions Soar
While expressways bring physical connectivity, technology brings digital connectivity, and UP seems determined to become a major player in the AI-driven future. The budget announces the development of an AI City in Lucknow, an initiative aimed at positioning the state as an emerging tech hub.
Additionally, a Cybersecurity Research Park is in the pipeline to strengthen digital security and innovation. The Smart Cities Mission will also see 58 municipalities upgraded, ensuring modern amenities and improved quality of life for urban dwellers.
In a bid to promote sustainable transport, ₹100 crore has been allocated for the procurement of electric buses, with another ₹50 crore set aside for charging stations. Clearly, Uttar Pradesh is looking to strike a balance between economic growth and environmental responsibility.
Welfare & Skill Development: Scooters for Women, Higher Pay for Workers
The government hasn’t overlooked social welfare and skill development in its push for economic supremacy. The budget includes provisions such as:
- Free scooters for meritorious female students, a move aimed at promoting education and women’s empowerment.
- ₹89,353 crore allocated for farmers, comprising 11% of the total budget.
- A pay hike for outsourced workers, increasing the minimum honorarium from ₹16,000 to ₹20,000 per month.
- Skill development programs for youth, ensuring they are job-ready for the evolving economy.
Education & Healthcare: Investing in Human Capital
A nation—or in this case, a state-can’t become an economic powerhouse without investing in its people. Uttar Pradesh has allocated ₹1.06 lakh crore (13% of the budget) to education, spanning schools and higher education institutions. Additionally, a significant portion of the budget has been set aside for hospitals and medical infrastructure, reinforcing UP’s commitment to improving public healthcare.
Steady Economic Growth & Fiscal Discipline
UP’s economic indicators reflect a state on the rise. The debt-to-GSDP ratio has improved from 36.7% in 2016-17 to 30.4% in 2022-23. Meanwhile, the GSDP has almost doubled, rising from ₹12.89 lakh crore in 2017-18 to ₹27.51 lakh crore in 2024-25.
The capital expenditure hike of 16.6% further reinforces UP’s infrastructure-led growth strategy. The government is clearly playing the long game—building roads, investing in tech, and improving social infrastructure, all of which should drive long-term economic prosperity.
The Road Ahead: Execution is Key
An ₹8.08 lakh crore budget blending tradition with modernity—expressways alongside AI, welfare alongside economic ambition—certainly makes for a compelling vision. However, the real test lies in execution. If Uttar Pradesh can successfully implement these plans, it could genuinely transform into India’s largest state economy.
A $1 trillion economy? The blueprint is in place. Now, it’s a matter of turning vision into reality.