UP Budget 2026-27: Vocational education funds up 88%; 14 new medical colleges; school outlay highest

UP Budget 2026-27 Highlights: Basic and medical education received the highest allocation in Uttar Pradesh’s ‘biggest budget’ for 2026-27 — Rs 77,622 and Rs 14,997 crore, respectively — amongst its overall, secondary, higher education, skills and employment departments. UP finance minister Suresh Khanna presented a total budget of Rs 9,12,696.35 crore for the financial year 2026-7 on Wednesday in the state’s Vidhan Sabha.

The finance minister announced 14 new medical colleges with an allocation of Rs 1,023 crore and a cancer institute in Lucknow with a budget of Rs 315 crore. The overall budget represents a 12.9% increase over 2025-2026.

In major announcements, Khanna also announced two Chief Minister Model Composite Schools in all 75 districts of the state; a new Rs 89-crore scheme to provide cashless medical facilities to teachers working in non-government secondary schools, and a student mental health policy for higher educational institutes.

Khanna in his budget speech stated: “Individuals possessing technical skills or proficiency in any trade are unlikely to remain unemployed. To this end, large-scale employment-oriented training and skill enhancement programmes will be run in mission mode on a priority basis. Alongside formal education, arrangements will be made to strengthen the skill base of youth”.

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In 2026-27, 15% higher budget was allocated for secondary education from last year with Rs 22,167 crore and around Rs 6,591 crore budget was proposed for higher education—7% higher from the year 2025-26.

Earlier, deputy chief minister M Brajesh Pathak called UP budget 2026-27 “the biggest budget in the history of the state”. The Yogi Adiyanath government in Uttar Pradesh is the only government to present the state budget for 10 years in a row.

Kasturba Gandhi Schools, cashless medical facilities

The Uttar Pradesh government allocated Rs 580 crore for establishing residential Kasturba Gandhi Balika Vidyalaya in development blocks where they do not currently exist.

Under the central government’s Samagra Shiksha Abhiyan programme, Rs 300 crore will be spent on developing all primary schools as smart schools. Another Rs 300 crore has been earmarked for a new scheme on maintenance of aided non-government schools found to be in “substandard” conditions.

Further, Rs 650 crore is allocated for providing free uniforms, school bags, shoes, socks and stationery to all students studying from Class 1 to 8. A new Rs 358-crore scheme was also announced to provide cashless medical facilities to teachers, non-teaching staff and contract or honorarium based personnel of council schools.

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Secondary, Higher Education: Scholarships, mental health

The UP government has announced Rs 520 crore for improving basic facilities in secondary schools in the state and Rs 10 crore for non-government aided secondary schools. This apart, Rs 20 crore is allocated for scholarships to students of government Sanskrit schools. Rs 150 crore has been earmarked for setting up Dream Skill Cab Cluster in government secondary schools.

In higher education, the state government announced a new student mental health and welfare policy with a Rs 14.50 crore budget allocation. The Rani Lakshmi Bai Scooty Scheme that provides scooties to meritorious girl students received Rs 400 crore.

The UP budget 2026-27 also allocated Rs 21 crore [each] for establishment of Swami Shukdevanand University, Shahjahanpur, and Kashi Naresh University, Bhadohi; Rs 40 crore is earmarked for Chief Minister Apprenticeship Promotion Scheme.

Rs 50 crore is allocated each for establishment of Maa Vindhyavasini University, Mirzapur, Guru Jambheshwar University, Moradabad and Maa Pateshwari University, Balrampur.

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UP Education Budget 2026-27: Medical, technical education

The UP government aims to establish artificial intelligence (AI) labs in 19 Industrial Training Institute (ITIs), AI Centre of Excellence and India AI Data Labs, under the India AI Mission, with a budget provision of Rs 32.82 crore.

Technical education received Rs 2.365 crore – 72% higher than that allocated in 2025-26. Further, an allocation of approximately Rs 714 crore has been proposed for upgradation of Centres of Excellence equipped with the latest technology in government polytechnics. Additionally, Rs 254 crore has been earmarked for the upgradation of government polytechnics and strengthening of infrastructure facilities, while Rs 50 crore has been allocated for the establishment of new government polytechnics.

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UP Budget 2026-27: Vocational education

At Rs 3,349 crore, the government has proposed an 88% increase in the allocation for vocational education to strengthen skill-based training and youth employability.

Under the Skill Development Mission, Rs 1,000 crore towards training expenditure and about Rs 836 crore for artisan training scheme has been earmarked. Further, Rs 500 crore has been allocated for Project Praveen, and Rs 20 crore has been allocated for the Chief Minister Apprenticeship Training Scheme.

“At present, 286 Government Industrial Training Institutes (ITIs) are operational across the state, offering 1,90,272 seats in various trades for youth training. To modernise infrastructure and align training with industry standards, 149 ITIs are being upgraded under Phase-1 in collaboration with Tata Technologies Ltd. Additionally, upgradation of 62 more ITIs is underway in 2025–26 under Phase-2 of the partnership,” Khanna said.