Budget will take UP towards $1 trillion economy goal: Yogi

Lucknow: Asserting that the state budget 2026-27 will prove to be a milestone in putting Uttar Pradesh on a growth trajectory and a step towards trillion-dollar economy goal, chief minister Yogi Adityanath on Thursday said the state has moved from being among "bottom three" states to "top three" in past eight-and-a-half years.Replying to the discussion on the budget in legislative assembly, the CM attributed the transformation to govt policies and strong financial management.
He said that the state's Gross State Domestic Product (GSDP) has reached Rs 26 lakh crore and the govt has set a target of Rs 40 lakh crore by 2026-27."The change in perception about Uttar Pradesh is the result of transparent and consistent policy decisions," he said.Highlighting improvements in fiscal indicators, Yogi said that fiscal deficit has come down from 4.3% of GSDP in 2016-17 to 2.97% in 2025-26."Debt-to-GSDP ratio, which was around 30% in 2016-17, has declined to about 26% in 2025-26, with a target to bring it down further to 23% in 2026-27. The state is adhering to the RBI guidelines and complying with the FRBM limits," he said, adding that per capita income has risen from around Rs 43,000 in 2016-17 to Rs 1.2 lakh in 2025-26.Emphasising capital expenditure, he said, "Revenue expenditure goes towards salaries and pensions, capital spending creates infrastructure and generates long-term economic returns."Citing expert opinion, he said every rupee spent on infrastructure yielded 5-6 times returns and generated employment. "Capital expenditure has increased from about Rs 71,000 crore in 2016-17 to over Rs 1.77 lakh crore in 2025-26, which is the highest in the country," he claimed.Yogi pointed towards improvement in credit-deposit ratio, which has risen from 45% earlier to around 61-62%, indicating that more of Uttar Pradesh's funds are being invested within the state. "This has contributed to job creation for lakhs of youth," he said.Highlighting the role of MSMEs, Yogi said the govt conducted detailed mapping of micro, small and medium enterprises and launched initiatives such as the ‘One District One Product' (ODOP) scheme."Uttar Pradesh now has 96 lakh MSME units employing over three crore people," he said.The CM referred to the implementation of Vishwakarma Scheme in 2019, under which toolkits, training, and affordable bank loans are being provided to traditional artisans to strengthen rural self-reliance.Contrasting his govt's performance with that of the SP regime, Yogi said: "Uttar Pradesh was once considered a BIMARU state with poor law and order and a negative perception. When the govt decided to waive farm loans in 2017, there were doubts about funding. However, the govt waived loans up to Rs 1 lakh for 86 lakh farmers using budgetary resources, without borrowing from banks or financial institutions."Citing reports by NITI Aayog and the Comptroller and Auditor General (CAG), Yogi claimed that Uttar Pradesh was categorized as a "frontrunner" in the Fiscal Health Index 2025 and acknowledged for its strong revenue position and balanced fiscal management."The state presented its own Economic Review for the first time," he said.Calling Uttar Pradesh a "dream destination" for investment, he said the state had transitioned from being viewed as a law-and-order risk to a hub of ‘Triple T' growth with "technology, trust and transformation".Outlining priorities, the CM said the state was focusing on ‘Industry 5.0' and emerging technologies. "India is emerging as a leader in artificial intelligence, which will form the cornerstone of next industrial revolution," he said.Yogi said that the school dropout rate under SP govt was 6-7% which had come down to less than 3%."The state govt plans to construct composite schools in all 8,000 nayay panchayats. In the first phase, it would be constructed in every assembly constituency," he said.Cashless treatment facility to every teacher was nothing short of respect to the community, he said, adding that the govt arranged toilets and potable water for girl students."Samajwadi Pension was meant for SP cadre. The party ignored poor from Brahmin community," he alleged.The CM said that on Jan 24 (UP Foundation Day), the govt made provision for Sardar Vallabhbhai Patel Employment and Industrial Zones in every district."The initiative aims to promote employment and investment through integrated framework. Approximately Rs 50-100 crore will be spent on each zone. Approximately 100 acres of land, located not too far from the district headquarters, will be provided for this purpose," he said.