Lucknow: Uttar Pradesh figured prominently in the Union Budget 2026, with a series of announcements focused on infrastructure, transport, healthcare and women-centric welfare schemes. Finance minister Nirmala Sitharaman outlined multiple projects aimed at improving connectivity, strengthening urban infrastructure and generating employment across the state.
Among the key proposals is the development of a port facility in Varanasi for the repair and maintenance of inland water vessels. The Budget also announced two high-speed rail corridors covering a total length of 1,500 kilometres. One corridor will link Delhi and Varanasi, while the other will connect Varanasi with Siliguri in West Bengal.
The healthcare sector is set to receive a major boost, with the capacity of district hospitals across the state proposed to be increased by 50 per cent.
Women’s welfare and education also received emphasis in the Budget. A girls’ hostel will be constructed in each of Uttar Pradesh’s 75 districts to support higher education. In addition, women self-help groups will be eligible for interest-free loans of up to Rs 5 lakh under the Lakhpati Didi initiative.
Urban development has been given a significant push, with cities having a population of over five lakh to be developed under a national 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 development of smaller pilgrimage centres and the upgradation of 50 railway stations in the state under the Amrit Bharat Station scheme.
On the industrial front, the Centre announced Semiconductor Mission 2.0, under which a semiconductor park is being developed in Noida. The project is expected to generate large-scale employment and strengthen the state’s industrial ecosystem.
Varanasi emerged as a major focus, with two high-speed rail corridors originating from the city and the proposed port project enhancing its strategic importance. Political reactions to the Budget were mixed. Chief Minister Yogi Adityanath described it as a budget of hope that would accelerate economic growth and create opportunities for youth. Samajwadi Party president Akhilesh Yadav criticised it as confusing and lacking substance, while other Opposition leaders said it failed to address core concerns of women and young people.