Lucknow | January 6, 2026

Uttar Pradesh Finance Minister Suresh Khanna has written to all state ministers asking them to closely monitor and speed up the use of funds allocated to their departments, stressing that slow spending is affecting the pace of development in the state. In his letter, Khanna called for fortnightly reviews of expenditure to ensure that funds are used not only faster but also in a “qualitative” manner.

The finance minister pointed out that despite sufficient budgetary provisions, most departments have failed to spend an adequate share of their allocated funds, particularly under capital expenditure. According to officials familiar with the matter, several major departments have been able to utilise only a little over 50% of their annual budget in the first nine months of the 2025–26 financial year. This, Khanna said, is a matter of concern as the financial year is now entering its final quarter.

The letter, dated January 2, 2026, comes shortly after Chief Minister Yogi Adityanath reviewed the state’s expenditure position. During that review, the chief minister had directed ministers and senior officers, including additional chief secretaries and principal secretaries, to accelerate spending and personally follow up with Union ministries in New Delhi to ensure the timely release of the state’s share of funds. He had also asked officials to maintain regular communication to avoid procedural delays.

In his communication to ministers, Khanna noted that the last quarter of the financial year has already begun and only about three months are left before accounts are closed. He said a review of expenditure under various schemes showed that spending levels, especially on infrastructure and capital works, remain unsatisfactory in many departments despite funds being readily available.

The finance minister warned that low expenditure directly impacts the public, as it delays the benefits of government schemes and slows down overall development. He stressed that timely and effective use of funds is essential for projects to be completed on schedule and for policy goals to translate into real outcomes on the ground.

Khanna has asked ministers to issue clear directions to officers under their charge to step up spending and remove bottlenecks. He also said that, in addition to the reviews conducted by the chief minister, he would personally review the expenditure position every month to track progress and identify problem areas.

“The major departments have been able to use only 50% plus of their funds so far. I will be reviewing the situation every month. We are laying emphasis on the qualitative use of funds as well,” Khanna said, explaining the intent behind the move.

The push for faster spending comes in the backdrop of a large state budget for 2025–26. The Uttar Pradesh government had presented an annual budget of ₹8.08 lakh crore in February 2025. The budget included new schemes worth ₹28,478.34 crore, with a strong focus on infrastructure development and long-term growth. These initiatives are part of the state’s broader vision to position Uttar Pradesh as a major investment destination and move towards the goal of becoming a trillion-dollar economy.

In December 2025, the state government also presented a supplementary budget seeking over ₹24,000 crore under various heads. This move drew criticism from opposition parties, which questioned the need for additional funds when many departments had not fully utilised the money already allocated to them.

Opposition leaders have argued that demanding supplementary grants without improving spending efficiency reflects poor financial planning. Government officials, however, maintain that better monitoring and coordinated efforts in the remaining months of the financial year can help improve utilisation and ensure that key projects stay on track.

With the finance minister now seeking regular reviews and greater accountability, the state government hopes to improve both the pace and quality of expenditure, ensuring that public funds are translated into visible development and timely delivery of benefits to the people of Uttar 

 UP Finance Minister Suresh Khanna Urges Ministers to Speed Up Quality Spending as Departments Use Just Half of Allocated Funds

Uttar Pradesh Finance Minister Suresh Khanna has asked all state ministers to push faster and better use of funds after several departments were found to have spent only a little over 50% of their budgets so far in the 2025–26 financial year. In a letter sent on January 2, Khanna stressed that slow spending, especially on capital projects, is holding back development despite enough funds being available.

He directed ministers to hold fortnightly reviews of expenditure in their departments and ensure that money is used in a “qualitative” way. Khanna warned that low spending delays public welfare schemes and prevents people from receiving benefits on time. With only three months left before the financial year ends, he said special efforts are needed to speed up work on pending projects.

The move comes soon after Chief Minister Yogi Adityanath also reviewed the situation and asked ministers and senior officers to follow up with Union ministries to ensure the timely release of funds. Khanna said he will personally review spending every month in addition to the chief minister’s monitoring.

Uttar Pradesh had presented a large budget of ₹8.08 lakh crore for 2025–26, focusing on infrastructure and growth. A supplementary budget of over ₹24,000 crore was also introduced in December, drawing criticism from the opposition over poor fund utilisation.

The government now aims to improve both the pace and quality of spending to ensure faster development across the state.