Uttar Pradesh Seeks $1.3 Lakh Crore Central Aid for Budget 2026 Capex Push

• Uttar Pradesh has requested Rs 1.30 lakh crore from the Centre for Budget 2026-27, targeting projects in health, education, urban infrastructure, water conservation, and renewable energy.
• Key demands include an AIIMS in western UP, an IIT in Bundelkhand, and Rs 32,075 crore for metro expansion in Lucknow, Kanpur, Agra, and new networks.
• The state highlighted a Rs 33,300 crore funding gap for the Jal Jeevan Mission, urging early release to prevent project delays.
• UP seeks Rs 1,005 crore for 17 municipal corporations, including Ayodhya, to become solar cities by 2030, and Rs 6,000 crore for pond rejuvenation and water management.
• Concerns were raised over the decline in UP's share of central taxes (from 19.67% to 17.93%) and the financial burden of welfare schemes like old-age pensions.

Why It Matters: Uttar Pradesh seeks substantial central funding for infrastructure and social development, emphasizing fiscal federalism concerns.