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Months before polls, UP govt in a race against time to use budgetary funds
The funds were allocated in the state’s ₹9.12 lakh crore annual budget presented in February and the over ₹59,000 crore first supplementary budget tabled on August 4 this year
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Less than six months before the 2027 assembly polls, the Uttar Pradesh government faces the challenge of ensuring the timely use of a large chunk of budgetary funds earmarked for various development schemes to make a visible impact on the ground.
The funds were allocated in the state’s ₹9.12 lakh crore annual budget presented in February and the over ₹59,000 crore first supplementary budget tabled on August 4 this year.
Effectively, about four months remain to utilise the budget and supplementary budget funds by the end of 2026, as the poll notification is likely to be issued in January 2027.
The state government has been able to use 35% to 40% of funds earmarked in the annual budget, those aware of the development said.
The government has issued financial sanctions for 45-48% of the annual budget while the state finance department this week asked for the release of funds allocated to different departments in the supplementary budget.
“The Uttar Pradesh Appropriation (supplementary of 2026-2027) Bill has been notified following the governor’s approval… So, necessary action may be taken to release financial sanctions for supplementary demands for 2026-2027…,” said a government order dated August 17, 2026 released by additional chief secretary (finance) Deepak Kumar. Kumar has asked the departments to keep the austerity measures, released from time to time, in view while submitting their proposals for the release of financial sanctions.
“The state government released nearly 45% of the state budget for use by the departments early this month and an additional 2% to 3% (total about 48%) of the budgetary funds may have been released by now. Our effort is to ensure that the benefits of the state government’s scheme reach the beneficiaries well in time. We will ensure the funds earmarked for different schemes in the annual budget (2026-27) and the first supplementary budget (2026-27) too are used well in time,” minister for finance Suresh Khanna said.
The state government will have to ensure consistent monitoring for qualitative use of funds and ensure the implementation of schemes ahead of the polls.
“A perusal of the supplementary budget shows that of the total expenditure planned, about 70% is capital expenditure mainly on infrastructure and capital assets creation. Such expenditure has a long gestation period to fructify. This would pose a real challenge to the government to spend the budgeted amount well in time before the model code of conduct kicks in. Past experience has shown that the actual expenditure has fallen short of the budgeted amount even in the case of the main budget. The government has to ensure both the timeline as well as quality of expenditure,” Professor Yashvir Tyagi, former head of department of economics, Lucknow University, said.
