UP finance minister Suresh Khanna writes to ministers to expedite ‘qualitative’ use of funds

The major departments have been able to use only 50% plus funds and I will be reviewing the situation every month, says Suresh Khanna

Uttar Pradesh minister for finance Suresh Khanna has written a letter to all ministers to hold a fortnightly review of the expenditure incurred by their respective departments under their charge to expedite the “qualitative” use of funds. Low spending causes hindrances in the pace of the state’s development, he said.

The expenditure, especially the capital expenditure. incurred by most departments is not satisfactory though sufficient budgetary funds are available, Uttar Pradesh finance minister Suresh Khanna has said in his letter. (FILE PHOTO)

The development comes days after chief minister Yogi Adityanath reviewed the situation and asked all ministers and additional chief secretaries/principal secretaries/secretaries to accelerate the use of funds and visit various Union ministries in New Delhi with a follow-up on phone to ensure the release of the state’s share at the earliest.

Those aware of the development said various major departments of the state government have been able to spend only about half of the annual budget in the first nine months of 2025-26.

Suresh Khanna proposes to review the situation every month, besides the reviews done by chief minister Yogi Adityanath.

“The major departments have been able to use only 50% plus funds and I will be reviewing the situation every month. We have laid emphasis on qualitative use of funds as well,” Khanna said when asked about steps taken to expedite expenditure.

In his letter dated January 2, 2026, sent to all the ministers, Khanna said “The last quarter of 2025-26 has already begun. The situation on the expenditure front under various schemes incorporated in the budget of major departments was reviewed. The expenditure, especially the capital expenditure. incurred by most departments is not satisfactory though sufficient budgetary funds are available. Low expenditure deprives the state’s people of benefits of various schemes and causes hindrance in the pace of development.”

Khanna, in his letter, further said barely three months are left for the closing of the financial year and so there is a need for special efforts to increase expenditure under various schemes. He has asked the ministers that directions be given to the officers at their level.

The state government presented its annual budget (2025-2026) of a projected size of ₹8.08 lakh crore in February 2025. The annual budget incorporated various new schemes of ₹28478.34 crore that aimed at giving a push to infrastructure with a futuristic vision to make the state an investment hub and growth engine of the country to turn Uttar Pradesh into a trillion-dollar economy. In December 2025, the state government presented a supplementary budget for 2025-2026 as well, demanding a sum of over ₹24,000 crore under various heads. The Opposition parties targeted the state government for demanding supplementary funds even though various departments failed to use funds already allocated.