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Major reforms in financial approval of projects in UP
1/30/2026 10:13:46 PM
Early Times Report
LUCKNOW, Jan 30: Chief Minister Yogi Adityanath directed that the financial approval process for projects in Uttar Pradesh to be faster, simpler and more transparent. The approval limit at the departmental minister level will be increased from Rs 10 crore to Rs 50 crore, projects costing Rs 50-150 crore will be approved by the Finance Minister and the projects above Rs 150 crore will require the Chief Minister's approval.
He instructed all departments to ensure approval of their annual action plans by 15 April, warning that non-compliance would be reported directly to the Chief Minister's Office. Any project witnessing a cost escalation of more than 15 percent will require fresh approval with proper justification.
Reviewing the Finance Department, the Chief Minister stressed time-bound execution, quality control, transparency and digital processes. He directed implementation of a State Guarantee Policy on the lines of the Central Government.
He emphasized timely monthly payment of honorarium to ASHA and Anganwadi workers, stating that the state should release funds from its own resources if the central assistance is delayed.
In 2023-24, Uttar Pradesh recorded capital expenditure of Rs 1,10,555 crore, the highest in the country. Investment accounted for 9.39 percent of total expenditure, with key fiscal indicators remaining within FRBM norms. The state's Composite Fiscal Health Index improved from 37 in 2014 to 45.9 in 2023, placing it in the top 'front-runner' category.
The Chief Minister reviewed digital reforms in budget, treasury and pension systems, including cyber treasury and fully online bill processing, targeted for complete paperless operation by April 2026. He also directed third-party quality audits by IITs, NITs and government technical institutions for major infrastructure projects, and mandated five-year, payment linked maintenance for all new government buildings.
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