The Mayawati government in Uttar Pradesh, a state headed for assembly polls, is on a financial overdrive. It has pulled out all stops to ensure that all government departments keep humming at the same vigorous pace at which they were functioning till the end of the financial year in March. It has already issued budgetary sanctions for a ?modest? R1,30,000 crore out of the R1,69,416.38 crore annual state budget for 2011-12.
For the first time in many decades, Uttar Pradesh is witnessing a marked turnaround in its overall outlook in proper and timely utilisation of funds.
An official of the state finance department told FE: ?Every year, departments keep waiting for budgetary sanctions which come at the end of May or early June, by when the rains start. Hence, no new work can be commissioned till September. So, in effect, the first six months of the fiscal are wasted. And at the end of the year, we face unutilised funds. In order to correct this, this year we have received strict orders that budgetary sanctions have to be issued by April 20 so that the money reaches districts by the month end and actual work does not get hampered due to paucity of funds.?
While there are whispers that this was more of a political move to ensure quicker results in the development sector ahead of elections, they are brushed aside by the man widely considered the brain behind the move.
?Yes, we have already issued sanctions for a modest R1,30,000 crore out of our total state budget of R1,69,000 crore, which is a very positive thing. The state government definitely has its priorities worked out, but it is not right to link the development strategy to elections,? said Anoop Mishra, the new chief secretary who was earlier principal secretary (finance) and the state infrastructure and industries development commissioner.
The grapevine goes that assembly elections in the state may be advanced, the reason why a hardcore finance person was appointed chief secretary to ensure proper financing.
Indeed, the state finance department did work overtime to get the job done on time, especially after Mayawati issued a terse warning to officials that all financial sanctions have to necessarily be issued against budgetary provisions by April 19 and that any delay would be deemed as a serious lapse and strict action taken against those found guilty.
In the case of schemes sponsored by the Union government and the World Bank ? money for which is usually released in May and June ? the state government has come forward and issued 25% of the proposed outlay for the year.
?The state government?s mandate is that work should not halt just because the funds from the Centre have not reached us yet. So, we have issued 25% of the budgeted amount for central schemes too,? said the finance department official, adding that for schemes fully run by the government, almost 50% of the money has been released.
?At a state-level meeting attended by district magistrates and district police chiefs, divisional commissioners and police officials posted in the field on April 20 in Lucknow, copies of the sanctions have been handed over to them and they have been asked to go back and ensure that no time is lost in completing development work on time,? he said.
Underlining the need for timely sanctions against budgetary provisions, the chief minister had said this was necessary to start development works without delay and finish them on time. He had also asked all departmental secretaries to tour the different districts within two months of the new financial sanctions being issued and report the ground realities within three days.