UP Budget Tomorrow As State Economy Heads Toward ₹36 Lakh Crore Mark

The Uttar Pradesh government will present its budget tomorrow, with the state economy expected to reach nearly ₹36 lakh crore this year. The economic review released ahead of the budget shows strong growth, rising income levels, and balanced development across agriculture, industry, and services.

This budget comes at a time when Uttar Pradesh is positioning itself as the country’s largest state economy. The figures point toward steady expansion, better investment flow, and improved financial discipline.

Economic Review Sets The Tone Before Budget Day

On the first day of the budget session, the state government placed its first-ever detailed economic review in the Assembly. Finance and Parliamentary Affairs Minister Suresh Kumar Khanna shared data that reflects how much the state economy has changed over the last eight years.

In 2016–17, Uttar Pradesh had an economy valued at ₹13.30 lakh crore. By 2024–25, it crossed ₹30.25 lakh crore. For the financial year 2025–26, the economy is projected to grow further and touch around ₹36 lakh crore.

UP Moves Closer To Becoming India’s Largest Economy

The review highlights that Uttar Pradesh is steadily increasing its contribution to the national economy. Its share has risen from 8.6 percent in 2016–17 to 9.1 percent in 2024–25.

This growth shows that the state is no longer lagging behind. Instead, it is emerging as a key driver of India’s overall economic expansion, supported by policy stability and faster project execution.

Per Capita Income Shows Clear Improvement

One of the most important changes is in per capita income. For the first time since Independence, the decline in income levels has fully stopped.

In 2016–17, per capita income stood at ₹54,564. By 2024–25, it increased to ₹1,09,844. For 2025–26, the estimate suggests it may reach close to ₹1,20,000.

UP’s income level compared to the national average has also improved. From just over 50 percent earlier, it has now moved above 53 percent, which signals gradual narrowing of the gap.

Balanced Growth Across Key Sectors

The economic review shows that Uttar Pradesh is no longer dependent on agriculture alone. In 2024–25, agriculture and allied activities contributed 25.8 percent to the state GSDP.

Industry accounted for 27.2 percent, while services made up the largest share at 47 percent. This mix shows that the state economy is becoming more diversified and stable.

Such balance helps reduce risk during slowdowns in any single sector.

Budget Size Has Expanded Rapidly Over The Years

The size of the state budget has grown sharply. In 2016–17, the budget stood at ₹3.47 lakh crore. For 2025–26, it is expected to reach around ₹8.33 lakh crore.

This growth is much faster compared to earlier years. Between 2008–09 and 2016–17, the increase was limited, but the last eight years have seen stronger expansion.

Capital Spending Drives Development Push

Capital expenditure has more than doubled in recent years. In 2016–17, capital spending was around ₹69,790 crore. By 2024–25, it rose to nearly ₹1.48 lakh crore.

Higher capital spending means more focus on infrastructure, roads, healthcare, education, and industrial facilities. This creates long-term assets and supports employment generation.

Strong Investment Climate And Revenue Growth

According to the review, Uttar Pradesh has received investment proposals worth over ₹50 lakh crore. The government credits this to safety, stability, and faster approvals.

The state’s own tax revenue has also improved significantly. From ₹86,000 crore in 2016–17, it increased to about ₹2.09 lakh crore in 2024–25.

At the same time, the debt-to-GSDP ratio has reduced, remaining below the national average. This reflects better fiscal discipline.

What To Expect From Tomorrow’s Budget

With these numbers already on the table, expectations from the budget are high. Focus areas may include infrastructure, employment, social welfare, healthcare, and industrial growth.

The economic review suggests that Uttar Pradesh has built a strong base. Tomorrow’s budget will likely aim to push this momentum further and keep the growth story on track.