The Uttar Pradesh government presented its first supplementary Budget for financial year 2026-27 on Tuesday, proposing an additional expenditure of ₹59,019.54 crore. According to reports from Business Standard, Finance Minister Suresh Kumar Khanna presented the supplementary demands for grants during the Monsoon Session, with the House reassembling at 12.20 pm after an adjournment amid slogan-shouting by Samajwadi Party members. The presentation was disrupted by opposition members who continued raising slogans from the Well of the House, ignoring repeated appeals by Speaker Satish Mahana to return to their seats.
The Industry Department (Heavy and Medium Industries) has been allocated ₹20,905.88 crore in supplementary capital funds, largely for Ganga Expressway-linked construction and land acquisition. This includes ₹6,580 crore to extend the expressway from Prayagraj through Mirzapur, Varanasi and Chandauli to Sonbhadra as the Vindhya Expressway, and ₹5,780 crore to extend it from Meerut to Haridwar, with land purchase accounting for the bulk of both sums. A further ₹2,380 crore has gone to the Vindhya Expressway's Purvanchal link spur, alongside smaller allocations for green-field links via Farrukhabad and Bulandshahr, and ₹3,000 crore for industrial area expansion. The state industrial development department has received the lion's share of more than ₹22,000 crore in the Budget.
The Energy Department has received ₹7,422.27 crore, dominated by a ₹6,958 crore grant to cover accumulated losses of state power distribution companies under the Centre's revamped distribution sector scheme. This includes ₹64.27 crore toward interest on 2015 discom restructuring bonds and ₹400 crore for the upcoming 3x800 MW Meja-II thermal power project. The supplementary Budget also includes ₹22,107.88 crore for heavy and medium industries, ₹17,942.73 crore for rural development, ₹7,422.27 crore for the energy sector, ₹2,025 crore for medical and health services, ₹1,655 crore for the social welfare department, ₹1,094.40 crore for the women welfare department and ₹700.01 crore for the Public Works Department. The agriculture, energy and medical departments have been allocated more than ₹15,300 crore, ₹7,000 crore and ₹1,980 crore, respectively.
After netting off ₹11,240.97 crore expected from the Centre, the net additional burden on the state's Consolidated Fund works out to ₹47,778.57 crore. According to the Finance Minister, as reported by Business Standard, the state's fiscal deficit remained within the prescribed limit. The state government had presented a ₹9.13 trillion Budget for 2026-27 in February. Since the Uttar Pradesh Annual Budget 2026-27, which was tabled on February 11, 2026, amounted to ₹9.12 trillion, the state's total Budget size for the current financial year has now increased to more than ₹9.71 trillion. The ongoing four-day Monsoon Session of the bicameral Uttar Pradesh legislature, comprising the Vidhan Sabha and the Vidhan Parishad, began on August 3 and will conclude on August 6.
