UP begins budget preparation with austerity directives

LUCKNOW: Commencing preparation for the state’s annual budget for 2025-26, the Uttar Pradesh government has cautioned officials against incorporating any avoidable items in the budget proposals as doing so is a serious irregularity and could lead to serious consequences. The word of caution comes months before the presentation of the state budget, which is usually done in February. The Yogi Adityanath government had presented the state budget for 2024-25 on February 5.

“All the officers (budget estimates) should realise that making arrangements for avoidable expenditure in budget estimates is a financial irregularity as big as spending more than sanctioned amount and may sometime lead to serious consequences. The officers found guilty of doing so may be held personally responsible for this,” said additional chief secretary, finance, Deepak Kumar, while asking various departments to send their budgetary proposals by November 30.

A 22-page order, including guidelines and various forms to provide required information, has been sent to all the additional chief secretaries/principal secretaries and secretaries. The departments have been asked to follow orders for austerity, check wasteful expenditure to bring down unproductive spendings.

Various departments have been asked not to directly send any proposals for buying new vehicles. The departments should instead go for contractual arrangements to hire vehicles wherever needed. The departments have also been asked to carry out work by awarding work contracts instead of appointing contractual staff to do the same. The departments have been asked to scrutinise and minimise the demands for funds needed for various items.

Officers have been asked to ensure that incomplete works are completed and maintain existing properties before sending proposals for creation for new properties. Other directives issued for preparation of the budget include instructions for following the provisions of Uttar Pradesh Fiscal Responsibilities and Budget Management (Amendment) Act 2016 that provides for allocation of 70 per cent of funds for capital works for existing schemes and 30 per cent for new schemes. For centrally sponsored schemes, the departments have been asked to send details about the funds to be received from the Centre for the same. The departments have been also asked not to make any token allocations.