Uttar Pradesh Chief Minister Yogi Adityanath on Monday expressed strong approval for the Union Budget 2026-27, stating that it aligns with the aspirations of the state, particularly through its emphasis on the Micro, Small, and Medium Enterprises (MSME) sector.
Budget Allocation for MSME Sector
During a press conference, CM Yogi highlighted that the budget includes a significant allocation of Rs 10,000 crore specifically for the MSME sector. He noted that Uttar Pradesh leads the country in this domain, with initiatives like 'One District, One Product' having already expanded exports and generated employment. "This Rs 10,000 crore will help UP in acquiring technologies, training programs, and new developments in packaging," he added, emphasizing how the funds will propel the sector forward.
Strengthening Domestic Manufacturing
The budget introduces sector-specific interventions to bolster domestic manufacturing across biopharma, textiles, and MSMEs. Key initiatives include:
- A Rs 10,000 crore Biopharma SHAKTI initiative aimed at positioning India as a global hub for biologics and biosimilars.
- A separate Rs 10,000 crore SME Growth Fund designed to nurture 'Champion MSMEs' and support their growth.
Infrastructure and Rail Development
Another major highlight is the announcement of seven high-speed rail corridors connecting major cities. CM Yogi pointed out that two of these corridors—Delhi-Varanasi and Varanasi-Siliguri—are allocated to Uttar Pradesh. "These two new railway corridors will benefit Uttar Pradesh's already excellent rail infrastructure," he stated. Additionally, he mentioned that the Eastern and Western Dedicated Freight Corridors pass through the state, where the largest logistics hub is being developed, further enhancing Uttar Pradesh's connectivity and economic prospects.
Fiscal Discipline and Future Vision
CM Yogi praised the budget for its focus on reform, growth, and fiscal discipline. "By weaving these three elements together, this budget will serve as a strong foundation, enabling us to build a stronger India and connect future generations to this vision of progress," he remarked during the press conference.
Key Budget Announcements
Other significant aspects of the Union Budget 2026-27 include:
- An increase in public capital expenditure to Rs 12.2 lakh crore for FY 2026-27, up from Rs 11.2 lakh crore in the previous year, underscoring the government's commitment to infrastructure-led growth.
- The New Income Tax Act, 2025, will come into effect from April 2026, featuring simplified rules and redesigned forms to ease compliance for taxpayers.
- Reductions in Tax Collected at Source (TCS) rates for overseas tour packages, education, and medical expenses under the Liberalised Remittance Scheme, aimed at providing relief to taxpayers.
Overall, CM Yogi Adityanath's endorsement underscores the budget's potential to drive economic development in Uttar Pradesh, with a special focus on MSMEs and infrastructure enhancements.
