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Uttar Pradesh Chief Minister Yogi Adityanath has proposed a significant revision in the financial approval framework for government projects, raising the value cap for minister-level clearances to INR 50 crore from the current INR 10 crore. The move is aimed at expediting approvals for high-value projects and improving administrative efficiency across departments. Under the proposed structure, projects valued between INR 50 crore and INR 150 crore would be cleared at the finance minister's level, while those exceeding INR 150 crore would require the chief minister's approval. The chief minister has also directed departments to finalise annual action plans by mid-April and introduced stricter controls on cost escalations. The measures form part of a broader push to improve fiscal discipline, capital expenditure management and digital treasury reforms in the state.
The Uttar Pradesh government is planning a major overhaul of its project approval mechanism to accelerate decision-making and reduce procedural delays for high-value public projects. Chief Minister Yogi Adityanath has proposed raising the financial threshold for projects that can be approved at the departmental minister level to INR 50 crore, a five-fold increase from the existing limit of INR 10 crore, according to an official statement issued earlier this week. Advertisement
The proposed changes are intended to streamline administrative processes and fast-track project execution, particularly for infrastructure and development initiatives that require timely financial clearances. Under the revised framework outlined by the chief minister, projects with an estimated cost of up to INR 50 crore would receive financial approval directly from the concerned departmental minister. Projects valued between INR 50 crore and INR 150 crore would be cleared at the level of the finance minister, while projects exceeding INR 150 crore would require approval from the chief minister himself.
The chief minister stated that empowering departmental ministers with higher financial authority would reduce bottlenecks and improve accountability within departments. He also underlined the importance of discipline in project planning and execution, directing all state departments to obtain approval for their annual action plans by April 15. Departments failing to meet this deadline would be reported to the Chief Minister's Office, signalling a stricter approach to compliance and monitoring.
In addition to revising approval limits, Adityanath stressed that any project witnessing a cost escalation of more than 15 per cent would be required to undergo re-approval. This measure is aimed at curbing unchecked cost overruns and ensuring better financial control over ongoing projects.
The proposed reforms were discussed during a review meeting of the state finance department, where the chief minister examined issues related to fiscal management, capital expenditure, budgetary control, digital financial reforms, treasury operations and pension systems. He emphasised the need for timely disbursement of honorariums to low-paid workers, including ASHA and anganwadi staff, highlighting the social dimension of fiscal governance.
The statement also noted that treasury reforms are underway to make fund transfers fully paperless through a cyber treasury system by April 2026. This transition is expected to improve transparency, reduce processing time and enhance efficiency in government financial transactions.
Further, the chief minister called for mandatory five-year maintenance clauses to be included in all new government building projects. He also proposed the creation of a dedicated corpus fund for the maintenance and upkeep of older government structures, aimed at ensuring asset longevity and reducing long-term repair costs.
Taken together, the proposed changes reflect the Uttar Pradesh government's focus on improving administrative efficiency, strengthening fiscal discipline and accelerating project implementation across sectors.
Source - PTI
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