Uttar Pradesh Budget 2026: State set to present Rs 36 lakh crore economy. Economic review shows balanced growth in agriculture, industry & services. Capital expenditure doubled; per capita income rises.

The Uttar Pradesh government is set to present its annual budget on Wednesday, marking a key milestone in the state’s economic journey. Ahead of the budget presentation, the state assembly witnessed the release of the first-ever comprehensive economic review on Monday.

Finance and Parliamentary Affairs Minister Suresh Kumar Khanna presented the detailed review, highlighting that Uttar Pradesh has achieved historic growth in its economy over the past eight years. From a GDP of Rs 13.30 lakh crore in 2016–17, the state’s economy surged to Rs 30.25 lakh crore in 2024–25. For the financial year 2025–26, it is projected to reach Rs 36 lakh crore, positioning Uttar Pradesh as one of India’s largest state economies.

The minister emphasized that this is the first time Uttar Pradesh has presented a structured economic review in the assembly, similar to the approach adopted by the central government. He noted that the state, once overlooked by investors, has now emerged as a major industrial investment hub. Under the government’s “Triple S” policy — Safety, Stability, and Speed — Uttar Pradesh has received investment proposals exceeding Rs 50 lakh crore.

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Economic Contribution and Per Capita Growth

The economic review revealed that Uttar Pradesh’s contribution to India’s national economy increased from 8.6% in 2016–17 to 9.1% in 2024–25. For the first time since independence, the state has halted the decline in per capita income. Per capita income rose from Rs 54,564 in 2016–17 to Rs 1,09,844 in 2024–25, with projections estimating Rs 1,20,000 for 2025–26. Comparatively, the per capita income ratio to the national average increased from 50.2% in 2014–15 to 53.5% in 2024–25.

Balanced Growth Across Agriculture, Industry, and Services

Uttar Pradesh has achieved a multi-sectoral economic structure, with 2024–25 GSDP contributions as follows:

• Agriculture & allied sectors: 25.8%

• Industry: 27.2%

• Services: 47%

The state budget has expanded significantly over the years. In 2016–17, it was Rs 3.47 lakh crore, while it is projected to reach Rs 8.33 lakh crore in 2025–26, reflecting substantial growth compared to Rs 2.34 lakh crore over the eight years from 2008–09 to 2016–17.

Capital Expenditure Drives Development

Public investment has seen a remarkable surge, with capital expenditure more than doubling. From Rs 69.79 thousand crore in 2016–17, it increased to Rs 147.72 thousand crore in 2024–25. The state’s fiscal health remains robust, with the public debt-to-GSDP ratio falling from 29.3% in 2016–17 to 28.0% in 2024–25, significantly below the national average. Meanwhile, own tax revenue has grown nearly 2.5 times, from Rs 86 thousand crore in 2016–17 to Rs 2.09 lakh crore in 2024–25.

The UP Budget 2026 is expected to further outline policies for economic growth, industrial investment, and infrastructure development, cementing the state’s position as a leading driver of India’s economy.