E-Paper
Uttar Pradesh govt out to expedite use of funds before financial year comes to an end
The state government wants to make maximum use of the available funds to make a visible impact on government schemes on the ground with Uttar Pradesh set to go to polls in early 2027.
The Uttar Pradesh government is making every effort to ensure that a large chunk of budgetary funds is used this month before the current financial year 2025-26 closes on March 31.
Senior ministers and officers have already been asked to ensure coordination with Union ministries to get the Centre’s share for centrally sponsored schemes released well in time.
The state government wants to make maximum use of the available funds to make a visible impact on government schemes on the ground with Uttar Pradesh set to go to polls in early 2027.
Chief minister Yogi Adityanath, who reviewed the fund utilisation situation soon after returning from his tour to Singapore and Japan, gave clear instructions to authorities to expedite fund use. Those aware of the development said the review indicated that the state government’s major departments may have used barely 70% of the annual budget (as on February 28, 2026) even as efforts are being made to take the total expenditure to above 80% on March 31, 2026.
“Yes, various departments have incurred about 70% expenditure. We are making efforts to qualitatively use funds and take total expenditure above 80% by the end of the financial year,” said Uttar Pradesh minister for finance Suresh Khanna.
As the state budget grows annually, the state government consistently faces the challenge of utilising budgetary funds.
Though the capital expenditure may be about 65%, various departments may have incurred a total expenditure of about 70% by now, an officer said.
The state government’s major departments were able to use about 50% of the budgeted funds in the first three quarters of 2025-26. The state government presented an annual budget of ₹8.08 lakh crore for 2025-26, which included new schemes totaling ₹28,478.34 crore. In December 2025, it presented a supplementary budget of ₹24,496.98 crore.
The state government has presented an annual budget for 2026-27 with a record size of ₹9.12 lakh crore (including new schemes worth ₹43,565.33 crore). It will have less than a year to ensure impact before the polls. (The poll notification may be issued in early January 2027).
Earlier Khanna, in a letter dated January 2, 2026, sent to all the ministers incharge of various departments, had urged them to expedite qualitative use of funds, saying low spendings cause hindrances in the pace of the state’s development.
“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 people of the state benefits of various schemes and causes hindrance in the pace of development,” Khanna said in his letter.
