In a significant move to accelerate development projects, the Uttar Pradesh government has substantially revised its financial approval norms, empowering departmental ministers with greater authority. Chief Minister Yogi Adityanath has directed an increase in the approval limit at the minister level from ₹10 crore to ₹50 crore, aiming to expedite decision-making and reduce bureaucratic delays.
Revised Approval Structure for Enhanced Efficiency
Under the new framework, projects costing up to ₹50 crore will now be approved directly by the respective departmental ministers. This marks a fivefold increase from the previous limit, reflecting the government's commitment to decentralizing authority and speeding up implementation.
For medium-scale projects valued between ₹50 crore and ₹150 crore, approval will be granted by the Finance Minister. This tier ensures financial oversight while maintaining a streamlined process.
Large-scale projects exceeding ₹150 crore will require the direct approval of Chief Minister Yogi Adityanath, ensuring high-level scrutiny for major investments.
Strict Timelines and Quality Control Measures
During a review of the finance department's operations, Adityanath emphasized the importance of time-bound execution, quality control, transparency, and digital processes. He has mandated that all departments secure approval for their annual action plans by April 15, with non-compliance to be reported directly to his office.
To maintain fiscal discipline, any project experiencing a cost escalation of more than 15 percent will necessitate fresh approval, accompanied by proper justification, as per the official statement.
Focus on Digital Transformation and Fiscal Health
The Chief Minister reviewed digital reforms in budget, treasury, and pension systems, including initiatives like cyber treasury and fully online bill processing. The government targets achieving complete paperless operations by April 2026, enhancing efficiency and reducing manual intervention.
Adityanath also directed the implementation of a State Guarantee Policy aligned with central government guidelines, further strengthening financial governance.
Support for Workers and Infrastructure Development
Emphasizing social welfare, Adityanath stressed the timely monthly payment of honorariums to ASHA and Anganwadi workers. He instructed that the state should release funds from its own resources if central assistance is delayed, ensuring uninterrupted support for these crucial frontline workers.
For infrastructure projects, the government has mandated third-party quality audits by prestigious institutions such as IITs, NITs, and government technical bodies. Additionally, all new government buildings will require five-year payment-linked maintenance contracts, ensuring long-term sustainability.
Uttar Pradesh's Fiscal Performance and Recognition
According to recent government data, Uttar Pradesh recorded a capital expenditure of ₹1,10,555 crore in 2023-24, reportedly the highest in the country. Investment accounted for 9.39 percent of total expenditure, with key fiscal indicators remaining within Fiscal Responsibility and Budget Management (FRBM) norms.
The state's Composite Fiscal Health Index has shown remarkable improvement, rising from 37 in 2014 to 45.9 in 2023, placing Uttar Pradesh in the top 'front-runner' category among Indian states.
In a related achievement, the Uttar Pradesh tableau secured the second prize in the Popular Choice category at the Republic Day Parade in Delhi, marking the seventh consecutive year of recognition. The tableau, themed 'Samriddhi ka Mantra Atma Nirbhar Bharat,' showcased the development journey of modern Uttar Pradesh alongside the historical and spiritual identity of Bundelkhand.
These reforms underscore the Uttar Pradesh government's proactive approach to governance, focusing on efficiency, transparency, and sustainable development to drive economic growth and improve public service delivery.
