Uttar Pradesh has received several major announcements in the Union Budget 2026, with a strong focus on infrastructure, transport, healthcare and women-centric schemes. Finance Minister Nirmala Sitharaman announced a series of projects that are expected to boost connectivity, urban development and employment in the state.
Among the key announcements is the proposal to develop a port facility in Varanasi for the repair and maintenance of water vessels. The budget also provides Uttar Pradesh with two high-speed rail corridors spanning a total length of 1,500 kilometres. The first corridor will connect Delhi and Varanasi, while the second will run between Varanasi and Siliguri in West Bengal, significantly improving long-distance connectivity from eastern Uttar Pradesh.
In the healthcare sector, the capacity of district hospitals across the state will be increased by 50 percent. Emergency and trauma centres will be set up in all districts to strengthen critical care services.
The budget has also laid emphasis on women’s welfare and education. One girls’ hostel will be constructed in each of the 75 districts of the state. Women self-help groups will be eligible for interest-free loans of up to Rs 5 lakh, aimed at promoting the Lakhpati Didi initiative. At present, over 18.56 lakh women in Uttar Pradesh have become Lakhpati Didis, while the state government has set a target of making three crore women financially empowered under the scheme.
Urban infrastructure development has been given a major push, with cities having a population of over five lakh to be developed with an outlay of Rs 12.2 lakh crore. In Uttar Pradesh, 25 cities including Lucknow, Ayodhya and Gorakhpur fall under this category. The budget also proposes the development of smaller pilgrimage centres. Additionally, 50 railway stations in the state will be upgraded under the Amrit Bharat Station scheme.
The Centre has announced the launch of Semiconductor Mission 2.0, under which a semiconductor park is being developed in Noida. Experts believe this project will generate thousands of employment opportunities in the region and give a boost to the state’s industrial ecosystem.
Varanasi has emerged as a major focus of the budget, with two high-speed rail corridors originating from the city and the proposed port project adding to its strategic importance. In the previous budget, Uttar Pradesh had received Rs 2.55 lakh crore as its share in central taxes, followed by an additional Rs 38,000 crore, taking the total allocation to Rs 2.93 lakh crore.
Mixed political reaction:
Political reactions to the budget were mixed. Chief Minister Yogi Adityanath described it as a budget of hope and aspirations, saying it would help accelerate economic growth and create opportunities for the youth, with special emphasis on AYUSH and the health sector.
Samajwadi Party president Akhilesh Yadav criticised the budget, calling it confusing and limited to selling dreams. He said those who failed to fulfil their earlier promises could not be expected to deliver through the budget.
SP MP Dimple Yadav said the budget offered nothing substantial, particularly for women and the youth. Rajya Sabha MP Imran Pratapgarhi remarked that if the finance minister herself did not understand the budget, it was unlikely that the public would. Former MLC Deepak Singh said that while earlier budgets created opportunities for ordinary citizens, the present policies were forcing educated youth to struggle for livelihoods.
