UP govt calls for austerity in budget spending

Yogi Adityanath-led Uttar Pradesh government has issued directives to all departments to implement austerity measures while issuing financial sanctions in accordance with the provisions of the annual budget for 2024-2025.

The state government had previously requested its departments to implement fresh measures to reduce expenditure and ensure the availability of funds to combat Covid-19 from 2020 to 2022.

Additional chief secretary (Finance), Deepak Kumar, in his 17-point directives sent to all department heads, has said, “Ensure compliance with the directives issued by the state finance department about austerity measures in government expenditure and expenditure management.”

Administrative departments have also been instructed to ensure that expenditure remains within the authorised limits of budgetary provisions.

In case of new construction works, departments are directed to issue financial sanctions in one or more installments according to the guidelines.

For projects involving expenditure of less than Rs 50 crore, departments have been instructed to appoint a government construction agency with the approval of the minister in-charge of the department.

Additionally, the directives provide for the execution of work on an EPC model for projects exceeding Rs 50 crore.