Uttar Pradesh’s ₹24,496.98 crore supplementary budget — fast money for growth, power, schools and cities

Uttar Pradesh on Monday presented a ₹24,496.98 crore supplementary budget for FY 2025–26 — a targeted top-up to the state’s original budget intended to accelerate projects and meet emerging expenditure needs in education, industry, energy and municipal development. The move raises the state’s total budget outlay to roughly ₹8.33 lakh crore (from the original ~₹8.08 lakh crore) and prioritises growth-enabling capital alongside revenue needs.

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Quick summary (the lede)

• Amount: ₹24,496.98 crore supplementary grants presented in the winter session (Dec 22, 2025).
• Why: To meet shortfalls in original allocations and to fast-track new/ongoing priority projects across industry, power, health, education and urban infrastructure.
• Composition: ~₹18,369.30 crore for revenue expenditure and ₹6,127.68 crore for capital expenditure (approximate split reported by state sources).

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Sectoral highlights — where the money is going

(major allocations and notable project earmarks reported by multiple outlets)

• Industrial development: ₹4,874 crore to spur industrial activity and investment.
• Energy / Power: ₹4,521 crore for the power sector (including renewables push via UPNEDA). ₹500 crore specifically flagged for solar/renewable initiatives and related subsidies.
• Health & Medical Education: ₹3,500 crore for health and family welfare, plus ₹423.8 crore for medical education.
• Urban / Municipal development: ₹1,758.56 crore for city/urban projects.
• Technical & school education: ₹639.96 crore for technical education and other education heads.
• Women & Child Development: ₹535 crore allocation.
• Sugarcane / agriculture-linked industry: ₹400 crore for sugarcane and sugar mill sector support.

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Big-ticket project allocations (selected)

• Greenfield expressway to link Jewar Airport with Ganga Expressway: ₹1,246 crore for the new connector.
• Ganga Expressway: ₹1,835 crore additional allocation for completion/expansion works.
• Other connectivity & urban projects: allocations for Gorakhpur link expressway, urban infrastructure and an international cricket stadium (small allocations reported for stadium development).

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The official line

Finance Minister Suresh Khanna presented the supplementary budget, saying the additional funds are to “sustain the momentum of development, provide additional resources to essential sectors, and fast-track schemes in response to emerging needs.” The government framed the move as consistent with fiscal discipline under FRBM norms and aimed at keeping Uttar Pradesh on a revenue-surplus track.

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Context — fiscal size and macro figures

• The supplementary grants add roughly 3.03% to the original state budget (~₹8.08 lakh crore), bringing total outlay to about ₹8.33 lakh crore.
• Officials point to a robust state economy with a projected GSDP figure reported in the coverage at around ₹31 lakh crore (₹31 trillion) — used to frame the allocations as sustainable within the state’s growth story.

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What this means — practical impacts and likely outcomes

For industry & jobs: The nearly ₹4,900 crore for industrial development plus complementary infrastructure spending (expressways, logistics links) can lower logistics costs, attract private investment, and support job creation — especially in industrial corridors and PM MITRA/PM MITRA-like clusters referenced in reports.

For energy & climate goals: The sizeable allocation to power and a dedicated ₹500 crore renewable/solar push suggest continued emphasis on cleaner energy and rooftop/state-level solar subsidies. If executed well, this could accelerate state renewable targets and rural electrification/rooftop adoption.

For education & health: Fresh funds for technical education and medical education could ease capacity constraints in professional training and health workforce development — but the impact will depend on timely release and effective utilisation.

For cities & services: Urban grants will be critical for municipal bodies to upgrade services — from drainage and roads to waste management — especially with rising urbanisation and new airports/expressway connectivity.

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Risks, trade-offs and implementation challenges

1. Fiscal slippage risk: Supplementary demands, unless fully matched by revenue rises or re-prioritisation, can raise concerns about fiscal discipline despite government assurances. Monitor actual revenue receipts and borrowing plans in the coming weeks.
2. Absorption capacity: Large capital infusions require administrative capacity — contractors, clearances, and supply chains — to convert allocations into on-ground outcomes quickly. Delays or slow tendering could blunt the stimulus effect.
3. Targeting & equity: How well funds reach weaker districts, smallholder farmers (e.g., sugarcane sector support), and public health facilities will determine whether the package reduces regional disparities or simply accelerates already well-connected regions.

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A quick checklist for stakeholders

• Businesses / investors: Watch tenders and land/industrial park notifications tied to the industrial allocation and expressway projects. Early partnerships may be advantageous.
• Municipal officials / urban planners: Prepare project readiness documents (feasibility, DPRs) to access urban development funds quickly.
• Education & health administrators: Track release schedules and ring-fence funds for capacity building (faculty hiring, labs, hospital upgrades).
• Citizens / civil society: Demand transparency on fund releases and monitoring indicators (completion timelines, beneficiary lists, tender details). Public oversight speeds better outcomes.

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Final take

Uttar Pradesh’s ₹24,496.98 crore supplementary budget is clearly designed as a targeted push — focusing on infrastructure, energy transition, industry and service-sector strengthening while shoring up social sectors like health and education. The extra allocations can accelerate growth and improve service delivery if the state ensures timely fund releases, transparent procurement, and strong project management. Keep an eye on the Finance Ministry’s follow-up statements and departmental notifications over the next few weeks to see how these allocations are converted into action.