CS reviews budget utilisation; stresses on capital expenditure, revenue realisation

Srinagar, Sep 25: Chief Secretary, Atal Dulloo, today chaired a high-level meeting to review the performance of departments with regard to utilisation of the annual budget and revenue realization in J&K.

The meeting was attended by Principal Secretary, Finance Department, Santosh D. Vaidya; Administrative Secretaries of all departments; Director General, Resources; Director General, Accounts & Treasuries; Director General, Budget, besides other senior officers.

During the review, the Chief Secretary took a detailed appraisal of the proportion of revenue and capital expenditure made by each department till date. He emphasized the need for departments to enhance capital expenditure while rationalising and curtailing avoidable revenue expenditure in order to strengthen the fiscal health of the UT.

The Chief Secretary underscored that capital expenditure not only supports infrastructure creation but also contributes directly to long-term economic growth and livelihood opportunities.

He urged departments to maintain strict adherence to timelines for Centrally Sponsored Schemes (CSS), noting that these schemes are designed to build durable assets and improve public services. He particularly stressed the smooth implementation of flagship programmes such as Samagra Shiksha Abhiyan, PMGSY, NABARD and other key initiatives.

With regard to the newly rolled out SASCI initiative, the Chief Secretary directed departments to expedite the process of Administrative Approval and Technical Sanction for all new works. He further advised that at least 75% of each ongoing work under this scheme should be completed by December this year, while also calling for the expeditious clearance of the remaining 100 mother sanctions to enable timely execution of projects envisaged under GoI’s SASCI initiative giving 50-year interest-free loans for completion of capital expenditure projects in a specific timeframe.

He also reviewed the performance of departments in mobilisng tax and non-tax revenues. He directed the Power Development Department (PDD) to improve billing efficiency and asked the State Taxes Department to plug leakages in GST collection. He stressed on leveraging technology to detect tax evasion and take stringent measures against defaulters to ensure full realization of revenues.

In his presentation, Principal Secretary, Finance, Santosh D. Vaidya, provided a detailed account of the expenditure status. He informed that out of the Budget Estimates (BE) of Rs 79,703 Cr in Revenue Expenditure, an amount of Rs 52,085 Cr has been released, with Rs 33,247 Cr spent till date. On the capital side, against a BE of Rs 18,451 Cr, Rs 7,435 Cr has been released to departments, while the expenditure booked so far stands at Rs757 Cr.

He further revealed that about Rs 1,038 Cr has been spent under CSS (Capex) and Rs 2,534 Cr has been utilized towards repayment obligations. It was also highlighted that while the power purchase bill has increased by 20%, the corresponding revenue realization has grown by only 10%, necessitating urgent corrective measures.

On the revenue front, the collections till August 2025 include GST Rs 3,408.14 Cr Stamp Duty Rs287 Cr, Motor Spirit Tax (MST)Rs708.67 Cr, Excise Rs 861 Cr, Transport sector Rs 370 Cr, Mining Rs 49.52 Cr, Water Supply Rs 31.19 Cr, Water Usage Charges atRs 380 Cr. The cumulative non-tax revenue realised during the ongoing financial year has reached Rs 2,765 crore.