Uttar Pradesh government prepares for pre-poll supplementary budget

The Yogi Adityanath government in Uttar Pradesh plans to bring a supplementary budget in November-December to bring in some populist measures and also make way for expenditures in the next financial year.

This supplementary budget will come ahead of the state assembly elections, scheduled early next year.

S. Radha Chauhan, additional chief secretary (finance), in a government order dated September 17, sent to all additional chief secretaries/principal secretaries and heads of departments, has asked various departments to send their budgetary proposals about the projected receipts and expenditure in next financial year.

"Administrative departments should submit estimates about revenue receipts and expenditure by October 31, 2021," said the order.

Chauhan's order to the departments has asked that they should make no provisions for lump sum or token provisions. It asks the departments to cut down wasteful expenditure. It also quotes provisions of the Uttar Pradesh Fiscal Responsibilities and Budget Management (Amendment) Act, 2016 and says at least 70 per cent of the total outlay for capital works should be for the ongoing capital works while the remaining 30 per cent amount should be for new capital works.

Chauhan, in her circular, has further asked them to send proposals for new demands, as and when ready.

It remains to be seen whether the Yogi Adityanath government will present a mini-budget, making populist announcements for the current financial year or present an interim budget or a vote on account for the first few months of 2022-23 ahead of the polls.

The then UP chief minister, Akhilesh Yadav, had on December 21, 2016 presented a mini-poll budget (second supplementary demands for grants for 2016-2017) to fund his dream projects under implementation. He had also presented an interim budget or a vote on account for the first five months of 2017-18 to meet the state government's committed expenditure in the next financial year after installation of the new government.

Yadav had said he was presenting only an interim budget for 2017-18. He had also said the new government to be elected after 2017 assembly elections would present a complete budget for 2017-18.

Later, following the BJP's victory and installation of the Yogi Adityanath as chief minister, the then minister for finance Rajesh Agarwal presented a complete budget (2017-18) for Rs 3.84 lakh crore in the state assembly on July 11, 2017.

"The state government asking for budgetary proposals from departments may be a routine exercise in the budget making process every year. Since the UP assembly election is likely to be held in February and March 2022, the state government may come out with a supplementary budget 2021-22 and/or interim budget for 2022-23 before going for the polls," said a senior official.

The BJP and the Yogi Adityanath government also appear confident of returning to power in 2022 and, therefore, preparations for the budget have been started so that after the assembly polls the government is ready with an annual budget for 2022-23.

--IANS

amita/skp/