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Uttar Pradesh Budget 2026-27 allocates ₹9.13 lakh crore with 12.2% outlay increase, focuses on education, agriculture

EconomyPolityAgricultureInfrastructureSocial IssuesHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
11 Feb 2026
~2 min
Source: The Hindu
Key Data:₹9.13 lakh crore₹9,12,696.35 crore12.2% increase19.5% capital expenditure3% fiscal deficit limit12.4% education allocation
Bodies:World Bank16th Central Finance Commission
Practice MCQs from today's news ▸
What This Article Covers

1.UP Finance Minister Suresh Khanna presented a ₹9,12,696.35 crore Budget for 2026-27, marking a 12.2% increase in outlay.

2.The budget targets a fiscal deficit of 3%, aligning with the 16th Finance Commission's recommendations, and allocates 19.5% to capital expenditure.

3.Key allocations include 12.4% for Education, 6% for Health, and 9% for Agriculture, with a focus on skill development and agri-export hubs.

The Big Picture
Prelims · HighMains · Medium

Uttar Pradesh's ₹9.13 lakh crore budget for FY 2026-27 signals a 12.2% growth in public spending, prioritizing fiscal consolidation, agriculture, and skill development. This budget is crucial for UPSC aspirants as it exemplifies state-level fiscal management, capital expenditure strategies, and the implementation of Finance Commission recommendations—all core topics in the Indian Economy syllabus.

Exam Lens

Quick Exam Facts From News

Total Budget Outlay₹9,12,696.35 crore (₹9.13 lakh crore)
Year-on-Year Increase12.2%
Capital Expenditure Ratio19.5%
Fiscal Deficit Target3% (as per 16th FC)
Education Allocation12.4% of total budget
Agriculture Allocation9% of total budget

1-Minute Revision

  • ›Total Budget Outlay: ₹9,12,696.35 crore (₹9.13 lakh crore)
  • ›Year-on-Year Increase: 12.2%
  • ›Target this Data: Budget outlay of ₹9,12,696.35 crore (₹9.13 lakh crore) for FY 2026-27.
  • ›Target this Nodal Body: 16th Finance Commission (sets the 3% fiscal deficit limit for states).
  • ›Target this Legal Point: Article 280 of the Constitution (Finance Commission).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The fiscal deficit limit of 3% for states, mentioned in the UP Budget, is based on the recommendations of which constitutional body?

Q2Statement-basedHard

Consider the following statements regarding the Uttar Pradesh Budget 2026-27:

1. The total budget outlay is approximately ₹9.13 lakh crore, which is about 12.2% higher than the previous year.

2. The allocation for the Health sector is higher than that for the Agriculture and Allied Services sector.

3. The fiscal deficit limit for the state is set at 4% of the GSDP, as per the recommendations of the 16th Finance Commission.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What percentage of the total Uttar Pradesh Budget 2026-27 has been allocated for Capital Expenditure?

Q4Application/ImpactMedium

What is the primary objective behind establishing an agri-export hub under the UP-AGREES project, as mentioned in the UP Budget?

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