Lucknow: In a major administrative reform aimed at accelerating project approvals and strengthening financial governance, Uttar Pradesh Chief Minister Yogi Adityanath has approved a fivefold increase in the financial sanctioning powers of state ministers.
Under the revised framework, departmental ministers can now approve development projects costing up to ₹50 crore, compared to the earlier limit of ₹10 crore. Projects valued between ₹50 crore and ₹150 crore will require approval at the Finance Minister’s level, while projects exceeding ₹150 crore will be sanctioned directly by the Chief Minister.
The decision was taken during a high-level meeting with the Finance Department on Friday. CM Yogi emphasized that the move is intended to speed up decision-making, reduce bureaucratic delays, and ensure timely execution of development schemes across the state.
The Chief Minister also directed all departments to get their annual action plans approved by April 15 without fail. Departments missing the deadline will be reported to the Chief Minister’s Office. He further clarified that any increase of more than 15% in a project’s cost must receive fresh approval with proper justification, ensuring strict financial discipline.
Reiterating his vision, CM Yogi said Uttar Pradesh must emerge as a model state for transparent, result-oriented financial management. He instructed departments to prioritize timeliness, quality, transparency, and digital governance. Following the Centre’s example, the state will also introduce a State Guarantee Policy.
Addressing welfare concerns, the Chief Minister ordered that honorariums of low-paid workers, including ASHA workers and Anganwadi staff, be credited to their bank accounts on a fixed date every month. In centrally sponsored schemes, the state will release payments from its own funds in case of delays to ensure workers do not suffer.
Officials briefed the Chief Minister on improvements in the state’s financial health and growth in Gross State Domestic Product (GSDP). They informed that under treasury reforms, all accounts will become fully paperless through the Cyber Treasury system by April.
Strengthening Financial Discipline
- Uttar Pradesh leads the country with ₹1.10 lakh crore capital expenditure
- 9.39% of total expenditure directed towards investment
- 11.6% share of state tax revenue in GSDP, second highest nationally
- State liabilities reduced to 27% of GSDP
The reform marks a significant step toward efficient governance, faster infrastructure development, and stronger fiscal accountability in India’s most populous state.
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