The Uttar Pradesh Finance Department has released the Medium-Term Fiscal Restructuring Policy 2025 under the state’s Fiscal Responsibility and Budget Management (FRBM) Act, 2004. According to this roadmap, the total size of the state budget is projected to reach ₹9 lakh crore in FY 2026–27.
Budget Size Expected to Rise Sharply in Coming Years
Going forward, the Finance Department estimates that the budget will cross ₹10 lakh crore in FY 2027–28 and further expand to over ₹11 lakh crore in FY 2028–29. As a result, Uttar Pradesh could see an annual increase of more than ₹1 lakh crore in its budget over the next three years.
Meanwhile, the state government’s long-term objective is to build a $1 trillion (₹10 lakh crore) economy by FY 2029–30. In view of this ambitious target, officials believe that future budgets may exceed current projections.
Focus on Investment and Faster Economic Growth
At the same time, the government’s strategy is centered on boosting investment and accelerating growth across sectors. Consequently, detailed preparations are underway at multiple departmental and administrative levels to align spending with development priorities.
First Supplementary Budget Likely in Winter Session
In addition, the government is considering presenting the first supplementary budget for FY 2025–26 during the upcoming Winter Session of the state legislature. The final size of the supplementary budget is yet to be decided.
However, ministries and departments have already begun submitting proposals to the Finance Department, seeking additional allocations to complete ongoing schemes. Once the supplementary budget is introduced, the total budget outlay for the current financial year is expected to exceed ₹8.08 lakh crore.
Winter Session to Begin on December 19
Notably, the Uttar Pradesh Legislative Assembly’s Winter Session will commence on December 19 and continue until December 24. During the five-day session, the government plans to push through several legislative measures.
Earlier this week, the Cabinet cleared the session proposal through circulation. Importantly, the supplementary budget may also be tabled during this period.
Political Tensions Likely Over Voter Revision Drive
Meanwhile, political friction is expected during the session, particularly over the Special Intensive Revision (SIR) of electoral rolls being conducted under the Election Commission’s supervision. Opposition parties have already accused the ruling BJP of misusing the process, raising the possibility of sharp debates and disruptions in the House.
