The new financial year 2025-26 has started in Uttarakhand from Tuesday. The Finance Department has issued detailed guidelines on budget income and expenditure for all administrative departments. This year, 80% of the capital expenditure will be spent on ongoing projects, while only 20% of the budget will be allocated to new projects.
Campa Fund to Follow Central Schemes Model
From this financial year, the Campa (Compensatory Afforestation Fund Management and Planning Authority) fund will be used in a manner similar to centrally funded schemes. This decision was made by a high-level committee led by the Chief Secretary and has now been included in the Finance Department’s guidelines.
Key Guidelines from the Finance Department
According to Finance Secretary Dilip Jawalkar’s instructions:
- Approval for New Projects:
- Approval for new projects costing more than 1 crore rupees will only be given if the project has a unique ID generated from the Gati Shakti Portal.
- Departments must submit a progress report on projects by April 30 to the Finance Department.
- Control on Expenditure:
- Departments have been instructed to spend wisely.
- New financial approvals for capital works will not be issued in the last quarter of the financial year.
- Department heads, administrative departments, and Finance Expenditure Control Department will be held responsible for any lapses.
Cancellation of Unstarted Projects
The Finance Department has called the practice of approving projects with token amounts inappropriate. It stated that starting projects with a token amount leads to delays and cost overruns.
- Review of Projects: Projects that have not yet started will be canceled.
- Future Approvals: Approvals will only be granted based on budget availability.
Strict Guidelines for Budget Management
The Finance Department emphasized transparency and accountability in allocating funds for new projects.
- Departmental reporting and review processes will be made stricter to ensure effective budget management.
- Departments must first reimburse the funds withdrawn from the State Contingency Fund.
- For capital projects costing more than 2 crore rupees in the state sector, a proposal must be submitted under the State Approval and Authorization Committee (SAACI).
Focus on Efficient Budget Use
The new guidelines prioritize ongoing projects and stress the importance of efficient spending.
- The government aims to ensure the effective use of the budget by requiring:
- Reimbursement of contingency fund amounts.
- Mention of the Gati Shakti Portal’s Unique ID.
- Prohibition on token amounts for new projects.
These measures are intended to bring financial discipline and effective budget management in Uttarakhand.
