UP's Economic Push: State Budget To Cross Rs 10 Lakh Crore By 2028, Fueling Growth

The Uttar Pradesh government is working to rapidly increase the size of its annual budget and focused on accelerating the state's economy. To achieve this, efforts to enhance revenue collection are being intensified.

According to government estimates, the state's budget is projected to reach Rs 1,013,592 crore in two years, by the financial year 2027-28. This would be an increase of approximately Rs 2 lakh crore from the budget for the current financial year (2025-26), which stands at Rs 808,736 crore.

These budget estimates for the coming years are based on the Uttar Pradesh Fiscal Responsibility and Budget Management (FRBM) Act, 2004, and the Medium Term Fiscal Restructuring Policy. Under this act, the Finance Department has projected revenue receipts, capital receipts, total expenditure, fiscal deficit, and indebtedness for the next three years.

The projections outline a clear growth path:

- The budget is estimated to reach approximately Rs 905,227 crore in the next financial year, 2026-27.

- In the financial year 2027-28, the budget size will cross the Rs 10 lakh crore mark for the first time.

- By the financial year 2028-29, the state's budget is forecast to reach Rs 1,135,311 crore.

As the budget size increases, the state government's earnings are also projected to grow at a similar pace. Total receipts (earnings) for the current financial year are estimated at Rs 779,243 crore. By 2027-28, the government's total revenue is expected to be around Rs 975,464 crore. This means that within two years, the government's earnings will also increase by nearly Rs 2 lakh crore.

The growth in the budget and revenue will allow the government to spend more on development projects. Expenditure on development works (capital outlay) is estimated at Rs 165,243 crore in the current financial year. Two years later, in 2027-28, the government will be able to spend Rs 214,750 crore on these works.