E-Paper
Budgetary provisions: UP depts have barely used 50% of funds
The govt was able to spend ₹4,915.27 crore of medical education dept against the provision of ₹11,141.24 cr while the backward class welfare dept spent ₹762.35 cr against the provision of ₹1,566.82 cr
LUCKNOW Uttar Pradesh government’s major departments have spent only about 50% of the budgetary allocations for various development projects in 2023-2024 (till mid-December). As the sanctions for the supplementary budget are being released now, the government is left with a large chunk of funds for projects ahead of the 2024 Lok Sabha elections.
Besides an annual budget of ₹6.90 lakh crore approved for 2023-2024, the state government got a supplementary budget of ₹28,760.67 crore passed in the state legislature, taking the size of UP’s total budget to ₹7.19 lakh crore.
“Various departments have spent 50% of the funds and efforts will be made to expedite the expenditure in coming months,” said minister for finance Suresh Khanna, without divulging further details of the funds spent by departments.
Besides allocations of ₹1.87 lakh crore for the capital expenditure in the annual budget, the state government earmarked ₹9,714 crore for capital expenditure in the supplementary budget. It made new demands of ₹7421.21 crore, about one fourth of the total size of the supplementary budget.
A scrutiny of the state government’s spendings (as given on the Koshvani UP website) indicates that major departments have not been able to spend a large chunk of funds. Many of them have spent less than 50% of the funds, as per the data of expenditure up to November 30.
Data indicates that the state energy department spent only ₹34,365.31 crore against the budgetary provision of ₹62,196.18 crore. The agriculture department was able to spend ₹3,148.61 crore against the provision of ₹7,943.15 crore. The state rural development department spent ₹15,002.35 crore against a budget of ₹31,359.72 crore.
The state government was able to spend ₹4,915.27 crore of medical education department against the budgetary provision of ₹11,141.24 crore. The backward class welfare department spent ₹762.35 crore against the budget provision of ₹1,566.82 crore while the social welfare department (including SC welfare) spent ₹3,595.45 crore against a provision of ₹12,555.35 crore.
The state government had incurred 51% of the targeted capital expenditure against the required 45% to get the remaining amount of interest-free loan for capital expenditure for a period of 50 years from the Centre under the latter’s special assistance scheme for states.
The UP government had set a target of capital expenditure of ₹83,144 crore in 2023-2024. It was expected to spend 45% ( ₹37,415 crore) of the capital expenditure targets by September 30, 2023, and was able to spend 51% of the amount.
“The state government is trying its best to give a big push to developmental activities…and in this effort public expenditure plays a crucial role. A perusal of relevant figures reveals that till December, about 50% of the budgeted expenditure has been incurred. However, a wide variation is seen among different departments in this context. Spending in civil aviation has been 61% (evident from faster development of airports including the one in Ayodhya), transport 52%, energy 52%, industry about 40%, roads & bridges only 25% and 36%,” said Professor Yashvir Tyagi, former head of economics department, Lucknow University.
“It is a trend that the expenditure picks up in the last quarter of the financial year. Though challenging, it may be expected that the government will be able to meet is annual targets of expenditure,” he added.
